JIU RONG HOLD (02358.HK): Loses First-Instance Land Lease Suit; Faces RMB 12.36mn Bank Claim

NewTimeSpace News: On 8 October 2026, Jiu Rong Holdings Limited (the "Company") published an inside information announcement, referring to its announcement dated 22 September 2026 regarding land lease contract dispute litigation. The land lease dispute involving Jiu Rong New Energy Technology Co., Ltd., an indirect wholly-owned subsidiary of the Company, has received a first-instance judgment, and Zhejiang Jiu Rong Intelligent Technology Co., Ltd., another indirect wholly-owned subsidiary, is involved in a newly added lawsuit.

The announcement disclosed that, on the judgment, the People's Court of Shangcheng District, Hangzhou handed down a first-instance judgment on 29 September 2026: ordering Jiu Rong New Energy to pay the plaintiff (the Wangjiang Sub-district Office of the People's Government of Shangcheng District, Hangzhou) rent of RMB 2,909,008.02 and interest of RMB 61,153.15 provisionally calculated to 28 September 2026 within ten days of the judgment taking effect; to vacate and restore the leased premises at No. 52 Shadi Road, Shangcheng District, Hangzhou and return them to the plaintiff within fifteen days; to pay site occupation fees of RMB 241,915.5 for the period from 1 July 2026 provisionally to 28 September 2026 (thereafter at RMB 1,163,603.21 per annum until actual vacating) within ten days; dismissed the plaintiff's other claims; and the case acceptance fee of RMB 15,036 is borne by Jiu Rong New Energy.

The Company stated that, on the new lawsuit, on 29 September 2026 Jiu Rong Intelligent received a summons from the People's Court of Gongshu District, Hangzhou, where Agricultural Bank of China Limited Hangzhou Gongshu Sub-branch sued Jiu Rong Intelligent (first defendant) and Hangzhou Lvyun Real Estate Co., Ltd. (second defendant, a subsidiary of the Company) over a financial loan contract dispute. The suit arises from a general working capital loan of RMB 12,300,000 granted by the bank to Jiu Rong Intelligent on 14 August 2025 (annual interest rate 3.5%, later extended to mature on 13 August 2026), with Lvyun providing a maximum-amount mortgage over four properties at Liuhe Jinzuo (aggregate area 1,523.8 sq m) as security (maximum secured amount RMB 24,040,000). The bank seeks repayment of the RMB 12,300,000 principal together with interest, default interest and compound interest totalling RMB 12,362,860.77 (provisionally to 2 September 2026), with Lvyun bearing maximum-amount mortgage liability and the bank having priority over proceeds from discounting, auction or sale of the four properties. Based on a preliminary assessment, depending on enforcement of the judgment and the outcome of the lawsuit, the Group may have to pay the relevant amounts or assume repayment liability, which may adversely affect its financial position and cash flow; the Group's principal business segments continue to operate normally, and it is seeking PRC legal advice and actively defending the claims while management continues to communicate with the plaintiff and the bank to explore settlement.

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