Yongan Forestry announced on the evening of September 23 that the company has filed a lawsuit with the Yongan Municipal People's Court in Fujian Province against four former directors and executives, Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian, over a dispute concerning liability for damages to the company's interests. The amount involved is 32.7645 million yuan. The company has received the court's notice of case acceptance, and the case has not yet been heard. This recovery action stems from a securities misrepresentation case from years ago. On August 18, 2021, the Fujian Bureau of the China Securities Regulatory Commission determined that the company's 2016 and 2017 annual reports contained false financial records, issued a warning to Yongan Forestry, and imposed a fine of 500,000 yuan. All four individuals were identified as directly responsible supervisors and received warnings and fines. On April 18, 2024, the Fuzhou Intermediate People's Court ruled in a securities misrepresentation liability dispute involving Zhang Qiang and 16 others, ordering the company to pay compensation of 31.7255 million yuan to sixteen plaintiffs, with the four defendants bearing joint and several liability. The judgment took effect after the Fujian Provincial High People's Court upheld it on second instance on June 25, 2025, and the Supreme People's Court rejected a retrial application on May 29, 2026. Because the four individuals failed to fulfill their obligations under the effective judgment, Yongan Forestry is seeking a court order requiring the four defendants to jointly compensate a total of 32.764504 million yuan, comprising a fine of 500,000 yuan, compensation of 31.72551364 million yuan, first-instance litigation costs of 269,495.18 yuan, and second-instance litigation costs of 269,495.18 yuan, and to jointly bear the case acceptance fee. The company stated that the case has not yet been heard, and its impact on current and future profits remains uncertain.
Fujian Yongan Forestry Group Joint-StockYongan Forestry sues four former directors/executives to recover 32.76 million yuan tied to a securities misrepresentation case, potentially recouping compensation it paid.
