Yihai Kerry Arawana Holdings (300999) said on Nov, 19 2025 that its wholly owned unit, Guangzhou Yihai Oils & Grains Industries, has received a first-instance criminal judgment from the Huaibei Intermediate People’s Court and will file an appeal.

The court found Guangzhou Yihai guilty as an accessory to contract fraud, imposing a fine of about 0.19 million Singapore dollars and ordering it, together with Yunnan Huijia Import & Export, to compensate Anhui Huawen International roughly 350 million Singapore dollars for economic losses.

Former Guangzhou Yihai employee Liu Degang was sentenced to 19 years in prison and fined around 0.53 million Singapore dollars for contract fraud and bribery.

Yihai Kerry Arawana and Guangzhou Yihai reject the ruling, arguing that the subsidiary neither took part in nor knew of any fraudulent activity, and that the judicial findings and application of law were erroneous. The appeal will be lodged with the Anhui Provincial High People’s Court.

The parent company said normal operations continue and the eventual financial impact remains uncertain. It will monitor developments and make further disclosures as required.