Huazhang Technology (01673. HK) announced that Zhejiang Huazhang Technology Co., Ltd., a wholly-owned subsidiary of the company, received the first instance judgment dated December 24, 2021 made by the intermediate people’s Court of Chuxiong Yi Autonomous Prefecture, Yunnan Province, the people’s Republic of China, The content is related to the contract dispute between Hubei Industrial Construction Group Installation Engineering Co., Ltd. (“plaintiff”) and Yunnan Yunhong Paper Co., Ltd. (as the defendant), and Zhejiang Huazhang is also listed as the co defendant in the legal proceedings.
According to the judgment, the defendant and Zhejiang Huazhang were ordered (including) to pay the plaintiff a total amount of about 37.6 million yuan. In view of the judgment, the plaintiff also applied to the court for a property preservation order against the defendant and Zhejiang Huazhang to freeze several Bank Of China Limited(601988) accounts of Zhejiang Huazhang. The court made an order dated January 12, 2022 to freeze the total amount in the bank account of about RMB 37.6 million for one year until January 2023. Zhejiang Huazhang appealed to the higher people’s Court of Yunnan Province, China, seeking (including) to overturn the judgment.
The terms of the judgment are only for the defendant and Zhejiang Huazhang, and the company and its subsidiaries are not obliged to make any payment. On the date of announcement, the judgment and order will not have any material adverse impact on the daily business process and operation of the group.
