Jiu Rong (2358) has disclosed that Hangzhou United Rural Commercial Bank initiated five legal proceedings involving the company’s subsidiaries. The disputes stem from defaulted loan facilities, with the total principal amount reaching 281.37 million RMB and overdue interest of 1.57 million RMB. The litigations involve multiple entities under the group and have been accepted by the People’s Court of Xihu District, Hangzhou. The default triggered cross-default provisions and acceleration clauses, subjecting the group to potential increases in finance costs and cash flow pressure.

Additionally, one subsidiary holds an overdue borrowing of 49.00 million RMB from Bank of Communications, with 3.50 million RMB due in late December 2025 and accrued interest of 0.17 million RMB as of 21 December 2025. No legal action has been initiated over this loan. The company remains in active discussions with key creditors to seek refinancing or extensions.

The group’s bank accounts have been frozen for an aggregate of 12.72 million RMB, constraining certain working capital. Despite these challenges, the digital video unit continues to focus on design and OEM work, the new energy vehicle and charging station operations remain active with 80 stations in Hangzhou, and the properties portfolio still generates rental income from commercial and residential projects. The frozen accounts temporarily affect the general trading segment.

Negotiations with the Plaintiff and the court are underway to settle disputes and unfreeze the accounts promptly. The board does not currently foresee additional provisions, citing recognition of the loans and interest as existing liabilities and an expectation of settlement through mediation. The management is accelerating property disposals and exploring broader financing channels to address liquidity needs.