CITIC Resources (01205.HK) announced that its subsidiary CACT in Australia was sued by Weihai Commercial Bank. The High People's Court of Shandong Province has conducted a retrial of the claim and issued a retrial judgment consistent with the first-instance judgment. The court found no evidence that CACT had any fraudulent intent. However, because the fraudulent act of Qingdao Decheng Mining should not benefit CACT, the court ruled that CACT must compensate Weihai for part of the losses suffered, with a total amount of about 1.153 million RMB.

The company stated that although it accepts the retrial judgment which ruled that CACT had no fraudulent behavior, CACT has sought the legal opinion of Chinese legal advisors and believes that it has sufficient grounds to appeal against the decision to claim compensation from CACT. Therefore, CACT has filed its appeal against the retrial judgments on August 23.