Huayang Intelligent's wholly-owned subsidiary Huayang Suqian recently received a civil ruling from the People's Court of Sihong County, Jiangsu Province, freezing 3 million yuan in its special fundraising account. The freeze resulted from a property preservation application by Suqian Dingxiang Construction Engineering Co., Ltd. due to a dispute over a construction contract, and the case has not yet been heard. The frozen 3 million yuan accounts for 0.87 percent of net fundraising proceeds and 0.36 percent of the company's latest audited net assets. The funds belong to the company's initial public offering fundraising project, the Precision Micro Special Motor and Application Product Intelligent Manufacturing Base Construction Project, for which Huayang Suqian is the new implementing entity. The main structure of the factory building constructed by Huayang Suqian for this project is largely complete, and the frozen funds are mainly reserved unpaid contract balances, which are not expected to have a significant adverse impact on the construction of the fundraising project.
Huayang Intelligent Co LtdSubsidiary's fundraising account frozen due to construction contract dispute, posing legal and financial risk.
Fundraising account frozen by court order due to construction contract dispute.