On the Zhitong Finance App, Taihe Holdings (00718) issued an announcement relating to the lawsuit and claim against the company's subsidiaries. Details are as follows:
(1) In response to Guangzhou Rongzhi's lawsuit claim, the company learned of a number of guarantee contracts allegedly signed by Guangzhou Rongzhi in 2019, and the company subsequently obtained such contracts.
The company recently learned that another domestic bank (other claimant banks) has filed three lawsuits against (including) Guangzhou Rongzhi in China. Guangzhou Rongzhi is alleged to have provided guarantees for three bank loans. The borrowers of these loans are Shenyang Shenghe Public Facilities Management Co., Ltd., Shenyang Ruifan Public Facilities Management Co., Ltd., and Shenyang Fangchengdi 1st Avenue Public Facilities Management Co., Ltd., all third party companies. Mr. Dai and other Chinese companies are also defendants in this lawsuit. According to the information contained in the claim documents, the total amount claimed by the other claimant banks against the relevant defendants was approximately RMB 209 million, $155 million and $211 million, respectively.
According to the claim information, it was allegedly a guarantee contract signed by Guangzhou Rongzhi. The date was June 21, 2019. At that time, Guangzhou Rongzhi was not a subsidiary of the company, but a company controlled indirectly by Mr. Dai. The Group acquired all of Guangzhou Rongzhi's interests through the Guangzhou takeover completed in April 2021. According to the Group's legal opinions on the Guangzhou acquisition and the corporate credit report obtained from the Credit Reporting Center of the People's Bank of China, the guarantee provided by Guangzhou Rongzhi was not disclosed when the Guangzhou takeover was carried out.
The company has hired Chinese legal advisers to provide advice on these litigation claims. The company and Guangzhou Rongzhi reserve all rights and remedies that may be available to Mr. Dai and other parties concerned.
(2) Regarding Jinzhou Jiachi's lawsuit claim, the company recently learned that a former supplier of the group (former supplier of construction services) has filed a lawsuit against Jinzhou Jiachi in China. According to the information contained in the claim documents, Jinzhou Jiachi is alleged to have failed to pay a small portion of the total construction costs due at the end of the service provided by the construction service supplier. The total amount claimed by the pre-construction service supplier from Jinzhou Jiachi was about 1.8 million yuan.
The company further learned that the former construction service supplier had applied to preserve the assets of Jinzhou Jiachi and received a civil ruling from the relevant Chinese courts), which ordered the seizure of Jinzhou Jiachi's assets over the amount of the construction claim. On the date of this announcement, according to the construction services civil ruling, Jinzhou Jiachi's domestic bank deposits totaling about 1.8 million yuan have been frozen.
The company has appointed Chinese legal advisers to provide advice on the construction services civil ruling and the above litigation claims, including any counterclaims that Jinzhou Jiachi may have brought against the former construction services supplier.
(3) The claimant bank has filed lawsuits against (including) Jinzhou Jiachi and Guangzhou Rongzhi in China. The company recently learned that the claimant bank has applied for the preservation of all defendants (including the assets of Jinzhou Jiachi and Guangzhou Rongzhi) under the relevant lawsuit claims, and has received a civil ruling from the relevant Chinese courts (the civil ruling on Geely Fresh's first loan lawsuit), which ordered that the defendants' deposits under the relevant lawsuit claim be frozen or their assets worth about 1.5 billion yuan be frozen or their assets equivalent seized. As of the date of this announcement, domestic bank deposits of Jinzhou Jiachi and Guangzhou Rongzhi totaling approximately RMB 11.1 million have been frozen in accordance with the civil ruling of Geely Fresh's first loan lawsuit.
The company has appointed Chinese legal advisers to provide advice on Geely Fresh's first loan lawsuit civil ruling. The Company, Jinzhou Jiachi and Guangzhou Rongzhi reserve all rights and remedies they may have with respect to the relevant ruling.