China International Holdings Limited Announces Litigation Involving Key Subsidiaries

China International Holdings Limited (“CIHL” or the “Company”) has issued a significant announcement regarding ongoing litigation that involves two of its wholly-owned subsidiaries. This development could have material implications for shareholders and may affect the Company’s share price due to the potential financial exposure and legal risks involved.

Key Points from the Announcement

• Litigation Notification: CIHL’s subsidiaries, CIHL (Tianjin) City Development Limited (“CIHL Tianjin”) and Yichang Zhongjia Xinye Asset Management Co., Ltd. (“Yichang Zhongjia”), received a notice from the Yichang Yiling District Court on 20 April 2026.
• Court Appearance: The subsidiaries are required to appear as defendants in legal proceedings scheduled for 11 May 2026.
• Other Defendant: The case also involves Beijing Kaiyuan Wanjia Management Consulting Co., Ltd. (“KYWJ”) as a co-defendant.
• Plaintiff: The proceedings were initiated by Hunan Construction Engineering Group Co., Ltd. (“the Plaintiff”), which is a creditor of Yichang Zeyou Real Estate Development Co., Ltd. (“Yichang Zeyou”).
• Claims:
  • The Plaintiff is seeking a court order holding all three defendants jointly and severally liable for the repayment of the following sums:
    • Principal: RMB 6,581,544.10
    • Interest: RMB 246,807.90
    • Interest for delayed performance: RMB 518,296.60
    • Total Claim: RMB 7,346,648.60
  • The Plaintiff is also seeking that the defendants bear the court fees, property preservation fees, and preservation guarantee fees associated with the case.
• Legal Representation: The Company has engaged legal counsel to represent the subsidiaries and is closely monitoring the progress of the litigation.
• Ongoing Updates: CIHL’s Board has committed to updating shareholders on any material developments through further announcements on SGXNet.

Potential Impact on Shareholders and Share Price

• Financial Exposure: If the court rules against CIHL’s subsidiaries, the Group could be liable for a total sum exceeding RMB 7.3 million, along with additional legal and administrative fees. This may have a direct impact on the Company’s financial position and liquidity.
• Price Sensitivity: The outcome of this litigation could influence investor sentiment and may result in share price volatility, depending on the perceived risk and financial impact.
• Shareholder Advisory: The Company has explicitly advised shareholders to exercise caution when dealing in CIHL’s shares until further updates are provided regarding the litigation.

Further Actions by the Company

• The Board is taking all necessary actions in the best interests of shareholders and the Group, including ongoing legal monitoring and representation.
• Shareholders will be kept informed of any material updates or outcomes as the situation develops.

Conclusion

This litigation represents a significant development for China International Holdings Limited and its investors. The outcome could have material financial and reputational consequences for the Group, and shareholders should closely monitor future announcements regarding this case.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult their financial advisors and consider all public disclosures by China International Holdings Limited before making investment decisions. The actual outcome of the litigation and its financial impact on the Group may differ from current estimates.

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