Kangqiao Yue Life Says Supreme Court Rejects Retrial Bid Over Bank Account Issue

Kangqiao Yue Life (02205) said the Supreme People's Court has rejected its retrial application over a second-instance civil judgment involving abnormal activity in the bank account of its wholly owned subsidiary, Kangqiao Yue Life Services Group. The company said it is seeking legal advice on the ruling and is discussing further steps with mainland counsel, including a possible application for civil prosecutorial supervision to the procuratorate with jurisdiction in Henan within the statutory deadline. It is also considering talks with the bank on a mutually acceptable solution for the loan and related collateral without affecting the subsidiary's normal operations, according to ETNet. Kangqiao Yue Life said the court found the evidence it submitted on the alleged invalidity of the loan contract and the purported letter of commitment was not new evidence sufficient to overturn the original ruling. The court also said its arguments on related guarantees and disclosure and approval procedures under the listing rules lacked legal basis, and that the bank had carried out proper due diligence. The court further said the bank's understanding of the nature of the purported letter of commitment was mistaken, but that this was not enough to establish bad faith.