Gudou Holdings (08308) issued an announcement. The date the company received the decision from the People's Court of Xinhui District of Jiangmen City is 2023...
According to the Zhitong Finance App, Gudou Holdings (08308) issued an announcement. The company received a civil ruling from the People's Court of Xinhui District of Jiangmen City dated October 27, 2023. According to the ruling, the People's Court of Xinhui District of Jiangmen City issued an order:
(1) The cooperation and development agreement between Guangdong Gudou and Aoyuan dated July 16, 2019, was terminated on May 19, 2023;
(2) Aoyuan must pay Guangdong Gudou RMB 10 million, that is, damages for violation of the cooperation agreement; and
(3) All claims made by Aoyuan, including but not limited to: (a) Guangdong Gudou should continue to fulfill its responsibilities under the cooperation agreement; (b) Guangdong Gudou should hand over the management rights of the eight plots of land involved in the joint venture and transfer documents relating to the joint venture to Aoyuan; and (c) Guangdong Gudou should pay Aoyuan RMB 5 million (that is, compensation for damages for alleged breach of contract) to Aoyuan has been rejected.
Furthermore, as stated in the ruling, the court ruled that the alleged supplementary agreement to the cooperation agreement in question was published on April 27, 2023, was invalid and unenforceable against the company. On the other hand, Guangdong Gudou has filed a counterclaim with Aoyuan over (including) the return and provision of financial records and information on the joint venture. However, the court ruled that the request was too broad and asked Gudou, Guangdong, to specify the records and information requested. Guangdong Gudou is currently seeking legal advice on formulating this requirement with the aim of retrieving financial records and information as soon as possible to facilitate the review process for the year ended 31 December 2022.
As the court issues a ruling, the impact of the lawsuit has been determined and the accusations made by the counterparty have been clarified by the ruling, the company is also in contact with the auditors regarding the uncompleted audit work schedule, with the aim of completing the review for the year ending 31 December 2022 as soon as possible and by the end of March 2024.
Trading of the company's shares continues to be suspended.