Renmintongtai announced after market close on September 29 that it recently received Civil Judgment No. 50, Civil First Instance, Harbin Intermediate People's Court, 2025, confirming that multiple construction contracts and agreements signed between the company and Heilongjiang Provincial No. 7 Construction Engineering Co., Ltd. are invalid, and ordering Provincial No. 7 Construction to return overpaid project funds of more than 55.18 million yuan, and to withdraw from and hand over the construction site of the Sanjing Women's Specialist Hospital complex project. The dispute began in 2014, when Provincial No. 7 Construction sued Sanjing Pharmaceutical for payment of 30 million yuan in project progress payments. In 2017, the company lost both the first and second trials, and in 2018, more than 32.55 million yuan was deducted from the company's account and enforcement was completed. In 2021, the Provincial High Court ruled to revoke the original first and second instance judgments and remanded the case for retrial. In 2023, the first retrial judgment dismissed Provincial No. 7 Construction's claims, but both parties appealed. In 2024, the case was again remanded to Harbin Intermediate People's Court for retrial, entering the first-instance stage of the second retrial. This judgment also orders Provincial No. 7 Construction to hand over project-related materials. The case acceptance fee for the main action of approximately 841,600 yuan shall be borne by Provincial No. 7 Construction. The project cost appraisal fee and the project quality and reinforcement appraisal fee totaling 1.555 million yuan shall be borne 60% by Provincial No. 7 Construction and 40% by the company. The announcement cautioned that the case is still in the first-instance stage of the second retrial, both parties have the right to appeal, and the final judgment result and its impact on the company's profits remain uncertain.
HPGC Renmintongtai Pharmaceutical CorpCourt ruled in Renmintongtai's favor, invalidating the construction contracts and ordering Provincial No. 7 Construction to return over 55.18 million yuan and vacate the site.
