Huamei Holdings involves a 175 million yuan lawsuit, case reopened for review; impact on company profits remains uncertain.

Zhejiang Huamei Holdings Co., Ltd. (Stock Code: 000607, Stock Abbreviation: Huamei Holdings) announced on April 3rd that a lawsuit involving a contract dispute has been restored for trial by the Hengyang Intermediate People’s Court in Hunan Province. The lawsuit stems from the transfer of South China University Shanshan College, with the plaintiff, Hengyang Urban Renewal Investment Co., Ltd. (referred to as “Hengyang Renewal Company”), claiming approximately 175 million yuan in damages from Huamei Holdings and Hengyang Xinchuanshan Company.

The announcement shows that the lawsuit was initially filed in April 2025 by Hengyang Renewal Company. Huamei Holdings, as one of the co-defendants, was required to pay a breach penalty of 160.49M yuan, interest during the fund occupation period of 14.2547 million yuan, lawyer agency fees of 30,000 yuan, as well as all litigation costs including case acceptance and preservation fees, with the total amount involved temporarily totaling 175.0487 million yuan. In July 2025, the court previously ruled to suspend the case. Now that the reasons for suspension have been eliminated, the trial process has been resumed.

Huamei Holdings stated in the announcement that, as of now, there has been no judgment result in this lawsuit, so its impact on the company’s current or future profits is uncertain. The final actual impact will be based on the court’s effective judgment. Meanwhile, the company emphasizes that all business operations are normal at present, and the above lawsuit will not cause significant impact on the company’s management and operations.

The company will disclose the subsequent progress of this lawsuit in a timely manner according to relevant regulations. Investors should be aware of the associated investment risks.

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Editor: Xiao Lang Express