FS ANTHRACITE (01738) announced that the company, along with several subsidiaries including Guizhou Puxin Energy Co., Ltd., Jinsha County Baiping Mining Co., Ltd., Guizhou Dayun Mining Co., Ltd., Liuzhi Special Zone Xinsong Coal Industry Co., Ltd., and Guizhou Yongfu Mining Co., Ltd., as well as Mr. Li Feilie and Feishang Group Limited, have been named as defendants in a legal proceeding filed by Guizhou Materials Development and Investment Co., Ltd. (the plaintiff) at the Intermediate People's Court of Guiyang, China.

The dispute involves a coal sales contract signed between Guizhou Puxin and the plaintiff in May 2023, under which Guizhou Puxin received advance payments totaling RMB 200 million from the plaintiff. In connection with this, Feishang Group Limited, the controlling shareholder of the company controlled by Mr. Li Feilie, has pledged 600 million ordinary shares of the company as collateral to secure obligations under the coal sales contract.

The company is currently seeking legal advice regarding the impact of the legal proceedings on the pledged shares and will issue further announcements as appropriate.