Bank Of Xi'An Co.,Ltd. announced progress on a litigation matter, disclosing that a financial loan contract dispute case, in which its Xianyang Branch was the plaintiff, has received a first-trial judgment. The amount involved includes a loan principal of 730 million yuan, along with corresponding interest, compound interest, default interest, and other relevant fees.
The announcement indicates that the litigation commenced on April 17, 2025. The bank's Xianyang Branch filed a lawsuit with the Xianyang Intermediate People's Court in Shaanxi Province against Xingping Hongyuan Development and Construction Co., Ltd., Tus Environmental Science And Technology Development Co., Ltd., and Hunan Jinsha Road & Bridge Construction Co., Ltd., due to financial loan contract disputes. The court accepted the case for filing on the same day, and relevant details were previously disclosed on April 19, 2025. Recently, the bank received the civil judgment document (2025) Shan 04 Min Chu No. 34 from the court. The first-trial judgment stipulates that the "Loan Contract" and the "Supplementary Agreement to the Loan Contract" between the bank's Xianyang Branch and defendant Hongyuan Company are terminated as of May 8, 2025; Hongyuan Company is required to pay the 730 million yuan principal and corresponding interest within fifteen days of the judgment taking effect, with interest calculated according to the original contract from December 21, 2024, to May 8, 2025, and calculated based on the Loan Prime Rate published by the National Interbank Funding Center from May 9, 2025, until the date of actual repayment; Tus Company assumes joint liability for the aforementioned debts; the bank's Xianyang Branch has priority in receiving compensation, within the scope of its creditor's rights, against the收益权 (profit rights) enjoyed by Hongyuan Company based on the "Xingping City Ecological Wetland Comprehensive Project Supporting Infrastructure PPP Project Agreement," while the court rejected the other claims of the Xianyang Branch.
Bank Of Xi'An Co.,Ltd. stated in the announcement that it has already classified the involved loan as a non-performing loan and made corresponding impairment provisions. It is anticipated that this litigation matter will not have a significant impact on the company's current or future profits.
