Jiu Rong Holdings (HKG:2358) said its wholly owned subsidiary, Jiu Rong New Energy Science and Technology, faces a lawsuit over a lease dispute, according to a Tuesday Hong Kong bourse filing.
The Wangjiang Sub-district Office of Hangzhou's Shangcheng District is seeking payment of 2.9 million yuan in outstanding site rent, plus interest, and site occupation fees from July 1 until the premises are returned.
The dispute relates to a lease for premises in Hangzhou that ran from January 2023 to June 30, 2026, with annual rent of about 1.2 million yuan. The plaintiff declined to renew the lease upon its expiry and requested that Jiu Rong New Energy vacate the premises.
The case is scheduled to be heard by a Chinese court on Sept. 28.
Jiu Rong said the litigation could adversely affect the group's financial position, depending on the outcome. The group is seeking legal advice and discussing a potential settlement with the plaintiff.
Shares of the firm were down nearly 7% in Wednesday morning trade.