Kangqiao Service Seeks PRC Supreme Court Retrial Over RMB473.7 Million Subsidiary Judgment

Kangqiao Service Group Limited ( (HK:2205) ) has provided an announcement.

Kangqiao Service Group Limited has updated investors on ongoing litigation involving its wholly owned mainland subsidiary after Chinese courts previously held the unit liable for RMB473.7 million under loan guarantees linked to Henan Chengqiao. Controlling shareholder and chairman Song Gewei has undertaken to indemnify the listed company for any losses arising from this judgment, aiming to ring‑fence the financial impact at the shareholder level.

The company has applied to the Supreme People’s Court of China for a retrial, arguing that the appellate court misapplied PRC company law, misjudged the relationship between Henan Chengqiao and the subsidiary, and erred in finding the bank to be a good‑faith counterparty. It has also submitted new evidence challenging the validity of the underlying loan agreements, while noting that about RMB212 million of the subsidiary’s bank balances are under judicial enforcement but asserting that the issue remains confined to this unit and does not affect the group’s other operations.

More about Kangqiao Service Group Limited

Kangqiao Service Group Limited is a Hong Kong-listed property services provider incorporated in the Cayman Islands, operating in mainland China through subsidiaries such as Kangqiao Yueshenghuo Service Group Co., Ltd. The group focuses on community and property management services, with its operations organized across multiple operating entities within the wider Kangqiao Service Group.

Average Trading Volume: 44,121

Technical Sentiment Signal: Buy

Current Market Cap: HK$889M

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