EC World Real Estate Investment Trust (BWCU) said it will appeal two judgments issued by the Hangzhou Intermediate Court on Apr, 13 2026 that validated guarantees its subsidiaries had signed in 2023 in favour of loans extended to its sponsor, Forchn Holdings Group.

The manager, EC World Asset Management, noted that the guarantees—executed by Fuzhou E-Commerce, Fuheng Warehouse and Hengde Logistics—had been deemed enforceable by the court, but legal counsel advised that an appeal would be in the best interests of the trust.

The trust has already recognised a contingent liability related to these unauthorised guarantees and mortgages and does not expect further accounting adjustments at this stage.

The board said it will update unitholders on any material developments and advised investors to exercise caution when dealing in EC World REIT units.