FAR INTL (02516) announced that on December 19, 2025, the company's board of directors was informed that the group had received a summons issued by the Intermediate People's Court of Hangzhou, Zhejiang Province on December 18, 2025. The summons requires its subsidiary, Hangzhou FAR INTL Logistics Co., Ltd., along with two employees (one of whom has resigned), to appear in court on December 24, 2025, at 9:30 AM to respond to charges related to smuggling ordinary goods.
After consulting with the company's Chinese legal counsel, the board learned that the case involves cross-border e-commerce import customs clearance and logistics services conducted by Hangzhou FAR INTL between July 2017 and June 2018. During this period, a client of Hangzhou FAR INTL was suspected of underreporting imports, and the then-head of the import business department and subordinate employees allegedly failed to fulfill their oversight responsibilities. Authorities believe this resulted in a loss of state tax revenue and are pursuing legal action against the relevant parties.
The board has sought legal advice from the company's Chinese counsel, which stated that: the case does not involve current executives or directors of the company or Hangzhou FAR INTL; and if the court ultimately holds Hangzhou FAR INTL liable, the subsidiary would only face a fine, estimated to be up to several million yuan (the exact amount to be determined by the court).
The company cannot currently predict the outcome of the case with certainty. Based on the legal counsel's assessment, the company expects the case will not have any material adverse impact on the group's financial performance.
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