JIU RONG HOLD (02358.HK): Unit Sued for About RMB 7.99mn in Unpaid Rent; Ordered to Repay RMB 12.89mn SPD Bank Advance

NewTimeSpace News: On 20 October 2026, Jiu Rong Holdings Limited (the "Company") announced, pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on the Stock Exchange and the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), an update on a new lawsuit and a newly obtained judgment involving the Group. The announcement disclosed that on 19 October 2026, Shuyuan Jiurong Technology Co., Ltd. (the "Defendant"), an indirect wholly-owned subsidiary of the Company, received a notice of response to action issued by the People's Court of Qiantang District, Hangzhou, in respect of a dispute over a premises lease contract concerning part of the premises at Building 1, No. 2, 8th Avenue, Baiyang Subdistrict, Qiantang District, Hangzhou, under case number (2026) Zhe 0114 Min Chu No. 11063; the proceedings were commenced by Shuyuan Technology Innovation Development Co., Ltd. (the "Plaintiff") against the Defendant.

The announcement stated that the case involves three premises lease contracts entered into between the Plaintiff and the Defendant: Contract 1 covers a leased area of 175.80 square metres for the period from 1 January 2025 to 30 June 2025 at a total contract rent of RMB 30,228.81; Contract 2 covers 22,498.03 square metres for the same period at a total contract rent of RMB 3,990,700.56; and Contract 3 covers 13,157.63 square metres for the period from 1 July 2025 to 31 December 2025 at a total contract rent of RMB 2,372,583.84. According to the civil complaint, the Plaintiff seeks an order that the Defendant immediately pay RMB 6,393,513.21, being the principal amount of rent outstanding for 2025, together with the corresponding default penalty, and RMB 1,592,310.21, being the principal amount of rent outstanding for actual occupation in 2026 without vacating the premises, together with the corresponding default penalty (with rent calculated from 1 January 2026 up to the date of actual vacating, provisionally calculated up to 31 May 2026), and bear all legal costs including case acceptance fees, preservation fees and announcement fees; the amounts claimed by the Plaintiff currently total RMB 7,985,823.42.

The announcement disclosed that on 19 October 2026 the Company received a civil judgment handed down by the People's Court of Shangcheng District, Hangzhou, Zhejiang Province, in respect of a financial loan contract dispute (case number: (2026) Zhe 0102 Min Chu No. 15751) brought by Shanghai Pudong Development Bank Co., Ltd., Hangzhou Branch (the "SPD Bank") against Zhejiang Jiurong Intelligent Technology Co., Ltd. ("Jiurong Intelligent") and Jiurong New Energy Technology Co., Ltd. ("Jiurong New Energy"), both indirect wholly-owned subsidiaries of the Company. Under the judgment, Jiurong Intelligent shall, within ten days from the effective date of the judgment, repay the principal of RMB 12,888,000 of the domestic letter of credit advance to SPD Bank, pay a default interest of RMB 84,577.5, and pay default interest calculated at an annual rate of 4.5% from 19 May 2026 until the date of actual repayment (on the basis of the outstanding advance principal); Jiurong New Energy shall bear joint and several guarantee liability for the above payment obligations; and the case acceptance fee of RMB 99,635 (charged at half, i.e. RMB 49,817.5) and the property preservation application fee of RMB 5,000, totalling RMB 54,817.5, shall be borne jointly and severally by Jiurong Intelligent and Jiurong New Energy.

The Company stated that, based on a preliminary assessment, the board considers that if the court ultimately rules in favour of the Plaintiff's claims, the Group may have to bear the relevant outstanding rent, default penalties and legal costs, which may adversely affect the Group's financial position and cash flow; as regards the judgment, given the overdue debts, the Company and its subsidiaries may have to bear the corresponding advance principal, default interest and legal costs, which may increase the Group's finance costs, further affect its financing and aggravate cash flow pressure, although the Group's principal business segments remain operating normally on the whole. The announcement said management will actively communicate with the relevant plaintiff to explore the possibility of settlement in respect of the new lawsuit; as regards the SPD Bank judgment, the Group has assessed its impact and decided not to appeal, and is negotiating follow-up repayment arrangements with SPD Bank, while seeking other financing options including shareholder loans, bond financing and equity financing to enrich its working capital sources and improve its sustainable operations.