Baide International (02668): The High Court rejected the appeal filed by the subsidiary Shenzhen Jinsheng and upheld the original civil ruling

According to Zhitong Finance App, Baide International (02668) issued an announcement. The Group recently received a civil judgment (civil judgment) issued by the Guangdong Higher People's Court (High Court) on an appeal against a legal lawsuit relating to the loan agreement of Huaxia Bank Co., Ltd. Shenzhen Branch (bank).

According to the civil judgment, the High Court rejected the appeal filed by Shenzhen Jinsheng, an indirect wholly-owned subsidiary of the Company, and upheld the original civil ruling.

According to the civil judgment, Shenzhen Jinsheng was ordered to repay the bank the total loan principal amount of RMB 279 million, along with loan interest calculated based on the loan agreement and civil ruling of approximately RMB 7.8813 million, as well as corresponding penalties and compound interest relating to the breach of contract. The Company and certain of its subsidiaries (as guarantors) are jointly and severally liable for such debts. Shenzhen Jinsheng and its guarantors (including the Company and several of its subsidiaries) were further ordered to pay litigation costs, including case handling fees and preservation application fees, totaling RMB 1,458,400. The civil judgement is final, decisive, and no further appeal is possible.

In light of the issuance of the civil judgement, the Group will continue to seek legal advice and explore any available options. The Group's management is also in discussions with the bank, hoping to reach an amicable solution to the relevant issues arising from the default, including but not limited to repayment arrangements and other possible alternatives. The Company will issue further announcements regarding significant updates on loans and defaults as needed or in due course.