PAK TAK INT'L (02668) announced that the group recently received a civil judgment from the Guangdong High Court regarding a legal dispute related to a loan agreement with Huaxia Bank Co., Ltd. Shenzhen Branch. According to the judgment, the High Court dismissed the appeal filed by the company's indirect wholly-owned subsidiary, Shenzhen Jinsheng, and upheld the original civil ruling.

The judgment ruled that Shenzhen Jinsheng must repay the bank the principal loan amount of RMB 279 million, along with approximately RMB 7.8813 million in interest as calculated under the loan agreement and civil ruling, as well as corresponding penalty interest and compound interest for the default. The company and several of its subsidiaries (as guarantors) are jointly liable for these debts.

Additionally, Shenzhen Jinsheng and its guarantors (including the company and certain subsidiaries) were ordered to pay litigation costs, including case acceptance fees and preservation application fees, totaling approximately RMB 1.4584 million. The civil judgment is final, conclusive, and not subject to further appeal.

Following the issuance of the judgment, the group will continue to seek legal advice and explore feasible options. Management is also in discussions with the bank to reach an amicable resolution regarding issues arising from the default, including but not limited to repayment arrangements and other possible alternatives. The company will issue further announcements regarding significant updates on the loan and default as necessary or appropriate.