Kangqiao Service Group (HKG:2205) said a mainland court has taken enforcement measures against assets of its wholly owned subsidiary, Kangqiao Yueshenghuo Service, according to a Monday Hong Kong bourse filing.
Shares of the property manager were down nearly 1% in Tuesday morning trade.
The Intermediate People's Court of Zhengzhou City deducted bank balances and related interest of about 214.5 million yuan from the subsidiary and obtained enforcement proceeds of about 17,600 yuan.
The court also seized four vehicles registered under the subsidiary, though the company said it does not have actual control over them.
The enforcement follows a prior judgment holding the subsidiary liable for 473.7 million yuan under certain loan agreements, together with accrued interest.
After completing enforcement actions and investigations, the court ruled to terminate the current enforcement procedure, while the creditor retains the right to pursue further repayment.
The company said the measures are not expected to have a material adverse impact on its business operations, and it is seeking legal advice on the ruling.