ST Palm has been sued by Shanghai International Trust over a shortfall obligation, with the amount involved reaching 322 million yuan, accounting for 76.49 percent of the company's audited net assets for 2025. The lawsuit stems from the company providing a shortfall guarantee for a 435 million yuan trust loan to Jishou Zongji Engineering Construction Project Management. As Jishou Zongji failed to repay the due amount, Shanghai Trust declared the loan prematurely due and demanded ST Palm assume joint repayment liability. The case has yet to be heard, and the company stated that if it is ultimately held liable, it could adversely affect its financial position. ST Palm has suffered massive losses for five consecutive years since 2021, with cumulative losses exceeding 5 billion yuan. Its net loss attributable to the parent company was 1.191 billion yuan in 2025, and it continued to lose 127 million yuan in the first quarter of 2026, with an estimated loss of 220 million to 270 million yuan for the first half of the year.
Palm Landscape Architecture Co LtdSued over shortfall obligation of 322 million yuan, 76.49% of net assets, could adversely affect financial position.
