According to the Zhitong Finance App, Weiye Holdings (01570) announced that Hangzhou Junwei Real Estate Co., Ltd., a wholly-owned subsidiary of the company, has filed an administrative complaint “(2024) Zhejiang 0113 Pre-Order No. 18” with the People's Court of Linping District, Hangzhou, China to sue the People's Government of Tangqi Town, Linping District, Hangzhou.
According to the administrative complaint, on March 13, 2023, at the request of the Deputy District Governor of Linping District, Hangzhou City, Zhejiang Province, China, the defendant supervised the Group's development project funds and was responsible for coordinating the use of pre-sale funds for the project. In addition, the plaintiff handed over the plaintiff's official seal, contract seal, financial seal, and legal representative's seal to the defendant at the request of the defendant. On March 29, 2023, the plaintiff, the defendant and certain supervising banks signed a number of account supervision agreements on supervisory matters. According to the terms of the account supervision agreement, after the expiration of the supervisory period, (1) the defendant and the supervising bank shall unconditionally cooperate to lift the supervision of the joint management account; (2) the supervising bank shall transfer the remaining funds from the joint management account to the plaintiff's designated account within three days after lifting the supervision; and (3) the defendant shall return such seals and related information to the plaintiff within three days after the expiration of the supervision period.
The plaintiff completed all the conditions of the account supervision agreement on September 23, 2023, so the defendant should return these seals and related data to the plaintiff within 3 days after the expiration of the supervision period (i.e. September 23, 2023) in accordance with the terms of the account supervision agreement. However, the defendant had not fulfilled its responsibilities under the terms of the account supervision agreement until the date of this announcement, and this seriously harmed the plaintiff's legal rights and interests. Therefore, in order to protect his legal rights and interests, the plaintiff will file a lawsuit in this case with the court in accordance with the law. The Company believes that filing this lawsuit will not adversely affect the normal business or operation of the Group.
The Group will continue to actively seek legal advice and take appropriate action when necessary to protect the interests of the Group and shareholders and minimize negative impacts on the Group.