EC World REIT: Subsidiary Involved in RMB 3.515 Billion Guarantee Lawsuit, Hangzhou Intermediate Court Rules Joint Liability

NewTimeSpace News: On May 9, 2026, EC World REIT announced that its subsidiary, Hangzhou Beigang Logistics Co., Ltd. ("Beigang"), and other entities acted as guarantors on December 31, 2021, for the payment obligations of the sponsor, Forchn Holdings Group Co., Ltd., under an equity repurchase agreement entered into with Hangzhou Fenhua Investment LLP (an affiliate of China Zheshang Bank). Hangzhou Fenhua subsequently initiated legal proceedings with the Hangzhou Intermediate Court in relation to this matter.

The announcement stated that on May 6, 2026, the Hangzhou Intermediate Court issued a judgment ruling that Beigang and the other defendants are jointly liable for a total amount of approximately RMB 3.515 billion. The Manager noted that Beigang's entry into the guarantee was not authorized by management, and the affixation of Beigang's seal on the guarantee document was not approved. The Manager has instructed its PRC legal counsel to investigate the circumstances and assess any further potential impact arising from the judgment.

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