Figtree Holdings’ Subsidiary Faces Court Judgment: Financial Impact and Shareholder Considerations

SEO Title: Figtree Holdings’ China Subsidiary Receives Court Judgment—What Investors Need to Know About the Financial Impact

Key Points from the Announcement

• Figtree Construction (Jiangsu) Co., Ltd (“Figtree Jiangsu”), an 85%-owned subsidiary of Figtree Holdings Limited, has received a formal judgment from the Jiangsu Changshu City People’s Court in China.
• The judgment relates to a dispute with 常熟市锦龙混凝土制品有限公司 (“the Subcontractor”) over outstanding payments for the supply of ready-mix concrete.
• Key financial obligations imposed by the court include:
  • Payment of RMB 700,000 (approx. S\$127,680) for outstanding amounts to the Subcontractor.
  • Interest of RMB 8,225 (approx. S\$1,500) for the period from 21 May 2025 to 9 September 2025, with further interest accruing from 10 September 2025 onward, calculated based on China’s one-year loan prime rate until full settlement.
  • Legal fees of RMB 8,855 (approx. S\$1,615) to be borne by Figtree Jiangsu.
  • All other claims by the Subcontractor were rejected by the court.
• Figtree Jiangsu will accept the court’s judgment and comply with the payment orders.

Analysis and Shareholder Considerations

• The principal payment of RMB 700,000 has already been accounted for in Figtree Jiangsu’s financial statements, limiting any additional material financial impact on the Group’s results for the financial year ending 31 December 2025.
• The interest and legal fee components (totaling less than S\$3,200) are not expected to have a material effect on the Group’s financials for FY2025.
• All other claims by the Subcontractor were rejected, which reduces potential downside risk from this litigation.
• There is no indication of further legal exposure from this dispute, as the company has accepted the judgment and all other claims were dismissed.

Potential Price-Sensitive Information

While the court’s ruling brings closure to this particular legal dispute, the amounts involved are relatively small compared to Figtree Holdings’ overall financial position. Importantly, the company has disclosed that the main financial obligation was already included in their accounts, and the incremental costs from interest and legal fees are not expected to have a significant impact on reported earnings or the company’s cash position.

There may be a minor positive sentiment as the legal uncertainty is now resolved, and the company is not exposed to additional liabilities from this case. However, the limited financial impact means this news is unlikely to drive significant movements in Figtree Holdings’ share price.

About Figtree Holdings Limited

Figtree Holdings Limited, listed on SGX Catalist since 2013, is a provider of commercial and industrial real estate solutions, with operations in Singapore, China, and Malaysia. The Group acts as a main contractor in Singapore and offers design, project, and construction management consulting in China and Malaysia. Figtree has a diverse portfolio in China and continues to explore property development and investment opportunities in Australia.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information is based on publicly available disclosures as of the date stated and is subject to change without notice.

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