Jiu Rong Holdings Limited reported that the People’s Court of Xihu District delivered first-instance judgments on three outstanding lawsuits filed by Hangzhou United Rural Commercial Bank against four operating subsidiaries—Soyea Jiu Rong Technology, Zhejiang Jiu Rong Intelligent Technology, Hangzhou Lu Yun Property and Jiu Rong New Energy.
The court confirmed aggregate loan principals of RMB112.67 million, comprising RMB18.93 million, RMB77.74 million and RMB15.99 million across the three cases. Interest, compound interest and penalty interest—tentatively calculated to early July and May 2026—together with total litigation fees of RMB0.70 million are also payable. If repayment is delayed beyond the specified period, the defendants must pay double interest on the outstanding debts under Article 264 of China’s Civil Procedure Law.
All four subsidiaries were declared jointly and severally liable. Furthermore, the bank obtained priority rights over 62 mortgaged properties registered to Lu Yun Property (gross floor area: approximately 17,401 sq m) within a maximum secured amount of RMB235.56 million. Failure to settle could trigger compulsory enforcement and possible disposal of these assets.
Management stated that the liabilities recognised in the rulings had already been fully recorded in the Group’s financial statements; therefore, no incremental balance-sheet impact is expected. Nonetheless, the specified repayment timetable and potential double-interest clause heighten short-term cash-flow pressure. Several Group bank accounts remain frozen, limiting working-capital flexibility, although core operations continue.
The company has 15 days from receipt of the judgments (27 August 2026) to appeal to the Hangzhou Intermediate People’s Court and is consulting mainland legal counsel on next steps. Irrespective of an appeal, Jiu Rong Holdings plans to negotiate instalment or enforcement settlement terms with the lender, pursue diversified financing channels, and seek extensions with other major creditors to mitigate cross-default risk.
Two earlier cases (Nos. 1242 and 1244) between the same parties were settled on 16 July 2026 and are being performed according to original loan agreements.
Shareholders and potential investors are advised to exercise caution while trading the company’s shares.