CHINA EB LTD (00165.HK): Court Orders Payment of RMB 1.367 Billion Share Transfer Consideration plus Default Interest; Company to Appeal
NewTimeSpace News: On 20 August 2026, China Everbright Limited (00165.HK) provided an update on the litigation against the group concerning the share transfer dispute with Yingli International Real Estate Limited. On 18 August 2026, the company received a civil judgment from the Chongqing Fifth Intermediate People's Court (the court of first instance) in case No. (2024) Yu 05 Min Chu No. 177, ordering the company to pay the plaintiff the outstanding share transfer consideration of RMB 1,367,185,634.75 within 15 days of the judgment taking effect, together with default interest on the judgment amount at an annual rate of 5% from 18 April 2019 until full payment, and dismissing the plaintiff's other claims (including those against other defendants). Of the first-instance case acceptance fee of RMB 9,418,965.74 and preservation fee of RMB 5,000, the company bears RMB 9,000,000 and the plaintiff bears RMB 423,965.74.
The company, the plaintiff and other defendants may appeal to the Chongqing Higher People's Court within the statutory period. The company is currently seeking legal advice on the grounds for a proposed appeal, and the scope and details of the appeal grounds have not been finalised. As of the announcement date, the judgment remains within the appeal period and has not taken effect. The total amount involved in the judgment is approximately RMB 1.878 billion, representing less than 10% of the company's audited net assets as of 31 December 2025 (HKD 32.141 billion). If the judgment is upheld in full on appeal, payment of the judgment amount would have a material adverse impact on the group's consolidated financial statements; however, it is not expected to have a material adverse impact on the group's day-to-day operations or overall solvency. The company will make further disclosures in due course and reminds shareholders and potential investors to exercise caution when dealing in the company's securities.
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