On December 27, Gelonghui Co., Ltd. (600753.SH) announced that the controlling shareholder Zhonggeng Group provided a guarantee for the financing business of its subsidiary. Zhonggeng Group's subsidiary was involved in a factoring contract dispute with Shanghai Guokun. As a guarantor, Zhonggeng Group applied to the Shanghai Financial Court to judicially freeze 13.267,200 restricted tradable shares of the company owned by Zhonggeng Group.

After the Shanghai Higher People's Court ruled on the above case, Zhonggeng Group failed to fulfill the obligations set out in the legal documents in force. Shanghai Guokun applied to the Shanghai Financial Court for enforcement. The Shanghai Financial Court issued an execution notice to Zhong Geng Group after filing the case. Zhong Geng Group did not comply promptly within the statutory period, and the Shanghai Financial Court ruled that at a different price, Zhonggeng Group held 13.267,200 restricted tradable shares of the company.