CLOUDBREAK PHARMA INC. (02592.HK): Bank Account of Subsidiary Frozen, Involving Approximately RMB 2.55 Million
On January 7, CLOUDBREAK PHARMA INC. (02592.HK) issued an inside information announcement disclosing that its indirectly wholly-owned subsidiary, Cloudbreak Biopharma Technology (Guangzhou) Co., Ltd., received a notice from the People's Court of Huangpu District, Guangzhou on January 6, 2026.
Upon the application of Cedar Wealth Management SPC, the court has imposed judicial preservation measures on the bank account of Cloudbreak Guangzhou held with Industrial and Commercial Bank of China (ICBC). The cash balance of approximately RMB 2.55 million in the account has been frozen until November 30, 2026. This legal proceeding stems from the arbitration application submitted by Cedar Wealth to Shanwei Arbitration Commission in August 2025.
The arbitration application claims that Cloudbreak Pharma Inc. and its subsidiaries shall pay Cedar Wealth the following amounts: unpaid service fees and other expenses totaling approximately US$2.05 million (equivalent to around RMB 14.71 million), plus related interest and legal costs of about RMB 1.04 million. The claimant also requests that Cloudbreak Guangzhou assume joint and several liability for the aforementioned claims.
The Company stated that prior to receiving the court notice, it was unable to fully assess the nature and potential impact of the arbitration proceeding due to the lack of detailed information provided. The Board of Directors is seeking legal advice in respect of these proceedings and will continue to evaluate their legal, operational and financial impact on the Group. The Company indicated that the current proceedings and the asset preservation order have not caused any material adverse impact on the overall business, operations and cash flow position of the Group, and business and operations remain normal. The Group will continue to explore the possibility of negotiating a settlement with Cedar Wealth to safeguard the overall interests of the Company and its shareholders.
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