Kangqiao Service Group Ltd. announced an update regarding its wholly-owned subsidiary, Kangqiao Yueshenghuo Service Group Co., Ltd., which recently received a civil judgment related to an ongoing litigation. The court determined that Henan Chengqiao is neither a shareholder nor the de facto controller of the subsidiary, and that a guarantee provided by the subsidiary in favour of Henan Chengqiao does not meet statutory requirements under the Company Law of the PRC. The company is currently evaluating the financial impact of this judgment on the group.
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