Gelonghui, April 26, 丨 Yu Sheng Culture (01859.HK) announced that the Company has received an order dated April 15, 2024 from the High Court of the Hong Kong Special Administrative Region (“High Court”), which allows Yongfeng Bank (China) Limited Guangzhou Branch (“Yongfeng Bank”) to execute arbitration awards obtained by the Shenzhen Court of International Arbitration in the form of a judgment or order of the High Court. The ruling involved the repayment of a bank loan granted by Yongfeng Bank to Beijing Zhongguang Yusheng Culture Communication Co., Ltd. (“Zhongguang Yusheng”), a wholly-owned subsidiary of the company at the time. The loan was guaranteed by the company and Liu Mu, the company's then-chairman of the board of directors.
Since the relevant loan expired on March 7, 2023, the ruling required Zhongguang Yusheng, the Company and Liu to jointly repay (i) the outstanding principal amount of the relevant loan of approximately RMB 27,353,121; (ii) total default interest of approximately RMB 54,326 as of May 30, 2023 and additional default interest calculated at an annual interest rate of 6.5%; and (iii) related legal and arbitration expenses.
The company is consulting on the order and ruling, and will take appropriate action to protect the interests of the company and shareholders as a whole. The Company will also inform shareholders and potential investors in due course of any significant developments relating to the order and related loans.