Shouyi Holdings (02227) issued an announcement. On March 31, 2023, the company claimed that it did not comply with relevant Thai laws...
According to the Zhitong Finance App, Shouyi Holdings (02227) issued an announcement. On March 31, 2023, the company filed a criminal lawsuit against D.D. Resident Co., Ltd (the investee) and two directors of the invested party (collectively, the “defendants”) on the grounds that they did not comply with relevant Thai laws. The Thai Criminal Court has officially included the criminal lawsuit in the trial list after initially hearing the evidence provided by the company's authorized representative. According to the law, such defendants must attend the next hearing scheduled to be held on December 27, 2023. File a defense in a criminal case.
In April 2023, the company also filed a written complaint with the Department of Business Development (DBD) and sought assistance to conduct a financial investigation into the relevant annual accounts received by DBD from the investee. DBD has issued written requests to investors twice requesting them to provide specific accounting documents for the specified year. However, the investee did not comply with the written requirements. In November 2023, the DBD Legal Office has taken further legal action against the investee's failure to comply with DBD requirements.
On October 29, 2023, the investee seller (as plaintiff) filed civil lawsuit No. 991/2566 (lawsuit) against the company (defendant 1), Mr. Zheng Yonghua (defendant 2), Mr. Zhang Ruiqing (defendant 3), and Aiyaree International Hotel Management Limited (defendant 4), a subsidiary of the company, with the Pattaya Provincial Court (court) for the unpaid balance of the acquisition of 49% of the investee's shares.
The company has directed its authorized representative in Thailand to defend and countersue the plaintiff. Currently, the case is being handled by a reputable law firm in Pattaya, Thailand.
Based on current assessments and as of the date of this announcement, the lawsuit has had no significant adverse impact on the Group's overall business or day-to-day operations. The Group will take appropriate measures to minimize possible interference (if any) with the Group's operations.
Although the group is expected to strictly defend the lawsuit and file a counterclaim over all costs and damages paid under the sales agreement, it is difficult to predict the time required to obtain a court of first instance judgment since the lawsuit is still in its early stages. However, the Thai legal adviser representing the company said they are confident that the company will achieve a positive outcome, and the company is still evaluating the financial impact of the lawsuit on the group. The company is actively communicating with relevant parties to properly resolve the lawsuit as soon as practicable.