ST Sanmu announced on September 1, 2026, that its wholly-owned subsidiary Fujian Sanmu Construction Development Co., Ltd., along with the company itself and Fuzhou Changle District Sanmu Real Estate Co., Ltd., has been sued by Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch over a financial loan contract dispute, with the amount involved provisionally calculated at approximately 61.5565 million yuan. The case has been accepted by the Taijiang District People's Court of Fuzhou, with case number 2026 Min 0103 Min Chu 9032, and is scheduled for hearing on October 9, 2026. From January to March 2026, Shanghai Pudong Development Bank Fuzhou Branch signed three working capital loan contracts with Sanmu Construction Development, totaling 60.8 million yuan in loans. Sanmu Construction Development provided a margin pledge of 800,000 yuan, while the company and Changle Sanmu Real Estate each provided joint liability guarantees with maximum principal not exceeding 60 million yuan. Because Sanmu Construction Development failed to repay as agreed, Shanghai Pudong Development Bank declared the loans due early and filed the lawsuit. As of the announcement date, other small litigation and arbitration matters involving the company and its subsidiaries that have not reached disclosure thresholds total approximately 83.7691 million yuan, accounting for 69.43 percent of the company's most recent audited net assets. The company stated it is actively communicating and negotiating and will participate in the litigation in accordance with the law. The case has not yet been heard, and the impact on company profits remains uncertain.
Fujian Sanmu Group Co LtdWholly-owned subsidiary Fujian Sanmu Construction Development was sued by Shanghai Pudong Development Bank over a 61.56 million yuan loan default, with the company and an affiliate providing joint liability guarantees.
