Kangqiao Service Subsidiary Held Liable for RMB 473.7 Million After Court Ruling

Kangqiao Service Group Limited ( (HK:2205) ) just unveiled an announcement.

Kangqiao Service Group Limited reported that a mainland court has issued a second civil judgment in a long-running dispute involving irregularities in bank accounts and a guarantee provided by its wholly owned subsidiary, Kangqiao Yueshenghuo Service Group Co., Ltd. The court ruled that a previously disputed promissory letter is a valid guarantee, making the subsidiary liable for RMB 473.7 million of principal tied to loans taken out by Henan Chengqiao, plus interest.

The company said the latest ruling differs from its understanding of the case, after the court reversed earlier findings that the bank had failed in its duty of reasonable review and was not a bona fide counterparty. Kangqiao is consulting PRC legal advisers on a possible further appeal and is assessing the financial impact on the group, while cautioning shareholders and potential investors to exercise care when dealing in its shares pending further updates.

The most recent analyst rating on (HK:2205) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Kangqiao Service Group Limited stock, see the HK:2205 Stock Forecast page.

More about Kangqiao Service Group Limited

Kangqiao Service Group Limited is a Hong Kong-listed company incorporated in the Cayman Islands, operating through subsidiaries in mainland China. It provides property-related services and lifestyle offerings, positioning itself within the broader property management and community services industry and targeting residential and related commercial clients in the Chinese market.

Average Trading Volume: 384,811

Technical Sentiment Signal: Buy

Current Market Cap: HK$903M

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