On November 18, Xiamen Bank Co.,Ltd. issued a progress announcement regarding litigation. The case involves a financial loan contract dispute with Xiamen Yinxiang Oils & Fats Co., Ltd., Orient Group Inc., and Xiamen Yinxiang Group Co., Ltd., which was accepted by the Xiamen Intermediate People's Court in April 2025.
According to earlier disclosures, on May 16, 2023, Xiamen Bank signed a Credit Line Agreement with Xiamen Yinxiang Oils & Fats, providing a credit facility of 419.1 million yuan (principal) for working capital loans, fixed asset loans, and bank acceptance bills.
On the same date, Xiamen Yinxiang Group and Orient Group signed Maximum Amount Guarantee Contracts as joint liability guarantors for the credit facility. On May 29, 2024, Xiamen Yinxiang Oils & Fats pledged its real estate as collateral through a Maximum Amount Mortgage Contract, with the bank subsequently disbursing loans totaling 418.68 million yuan (outstanding principal).
The borrower defaulted after incurring overdue payments at other financial institutions and becoming embroiled in major economic disputes and litigation. Xiamen Bank accelerated the loan's maturity and filed suit to protect its rights.
The latest announcement states that Xiamen Yinxiang Oils & Fats has appealed the first-instance judgment to Fujian High People's Court, contesting portions of the ruling including legal fees. Xiamen Bank received the court's Notice of Response to Appeal (Case No.: [2025] Min Min Zhong 679).
Xiamen Bank confirmed it has made corresponding impairment provisions for the loan and expects the litigation to have no material impact on current or future profits. The bank pledged to fulfill information disclosure obligations promptly and reminded investors to consider associated risks.
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