FRONTIER SER (00500) has issued an announcement regarding a claim filed by a client, the Shanghai Claimant, against its indirectly wholly-owned subsidiary, FRONTIER Logistics (Shanghai) Co., Ltd. (Shanghai Logistics). The initial claim amount was 28.7 million yuan.

Shanghai Logistics has received a judgment from the Shanghai High People's Court, which orders the subsidiary to compensate the Shanghai Claimant approximately 17.7 million yuan. This amount can be partially offset against the accounts receivable of about 10.4 million yuan owed to Shanghai Logistics by the claimant.

Following this offset, Shanghai Logistics is obligated to pay a net settlement sum of approximately 7.3 million yuan to the Shanghai Claimant. After accounting for provisions made previously, the Group's consolidated financial statements may need to reflect an additional loss of about 13.2 million yuan.

Shanghai Logistics is still seeking legal advice from its counsel concerning potential courses of action, which include the possibility of filing a further appeal against the judgment.