Suzhou Hao Hongyeoperations involved in the case regarding creditor's rights terminated execution due to no property available for enforcement; plans to make full impairment provisions affecting 2025 net profit by approximately 6.1 million yuan.

Suhow Hongye Co., Ltd. (Stock Code: 600128, Stock Abbreviation: Suhow Hongye) recently announced the progress of a lawsuit, revealing that the enforcement phase against Ningbo Kerui Ke Te Trading Co., Ltd. (hereinafter referred to as “Kerui Ke Te”) and He Liang has been terminated due to the inability to find assets available for enforcement. The court has ruled to end this enforcement procedure. The company plans to fully provision for credit impairment on this claim, which is expected to reduce net profit for 2025 by approximately 6.1 million yuan.

The announcement shows that the case was previously judged in favor of Suhow Hongye by both the first and second instance courts. Since the losing party did not voluntarily fulfill their obligations, the company applied for enforcement to the Qinhuai District People’s Court in Nanjing. After a comprehensive investigation of the assets, no enforceable assets were found for Kerui Ke Te and He Liang, and the court legally decided to end the enforcement procedure. Suhow Hongye stated that the company still reserves the right to demand the defendants to fulfill their debts, and if enforceable assets are later discovered, it may apply to resume enforcement.

Regarding the impact of this enforcement on the company’s performance, Suhow Hongye said that as of December 31, 2024, the company had already provisioned 16.13 million yuan for related claims. Based on the current enforcement situation and prudent principles, the company plans to fully provision for credit impairment on this claim, which is expected to reduce net profit for 2025 by about 6.1 million yuan, with the final amount subject to audited data from the accounting firm. According to the company’s financial department calculations, this provision will not cause a year-over-year decline in the company’s operating performance in 2025.

It is understood that the lawsuit involving Suhow Hongye, Kerui Ke Te, and He Liang has been disclosed multiple times, and related details can be found in various litigation announcements issued by the company since September 23, 2023. The company reminds investors to be aware of investment risks.

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Editor: Xiao Lang Kuai Bao