Fujian Yongan Forestry Group Joint-Stock

Yongan Forestry announced on the evening of September 23 that it has filed a lawsuit with the Yongan Municipal People's Court over a dispute concerning liability for harm to company interests. The defendants are Su Jiaxu, Chen Songbai, Chen Zhenzong, and Wu Jingxian. The court has accepted the case but has not yet held a hearing. All four defendants were directly responsible executives for the false records in the company's 2016 and 2017 annual report financial data. The Fujian Securities Regulatory Bureau previously issued a warning to the company and imposed a fine of 500,000 yuan, fined Su Jiaxu, Chen Songbai, and Chen Zhenzong 300,000 yuan each, and fined Wu Jingxian 200,000 yuan. Subsequently, Yongan Forestry was sued by investors over liability for securities misrepresentation, and the Fujian Provincial High People's Court issued a final judgment ordering the company to pay the plaintiffs compensation of 31.7255 million yuan, which the company has already paid. Yongan Forestry is requesting that the four defendants be ordered to jointly compensate the company for losses of 32.7645 million yuan, comprising the 500,000 yuan fine, 31.7255 million yuan in compensation, 269,500 yuan in first-instance litigation costs, and 269,500 yuan in second-instance litigation costs. The announcement cautioned that the case has not yet gone to trial, and its impact on the company's current or future profits remains uncertain.