SHENGDA FORESTRY(SZ:002259) Zheng Quan Zhi Xing·2025-05-18 08:21Core Viewpoint - The legal opinion letter issued by King & Wood Mallesons addresses the inquiries from the Shenzhen Stock Exchange regarding Sichuan Shengda Forestry Industry Co., Ltd.'s 2024 annual report, focusing on issues related to fund occupation and illegal guarantees by the former controlling shareholder [1][2]. Group 1: Legal Compliance and Responsibilities - King & Wood Mallesons has conducted thorough verification and ensured that the facts presented in the legal opinion letter are true, accurate, and complete, adhering to the principles of diligence and good faith [2][3]. - The law firm emphasizes that it only provides opinions on legal matters related to the inquiry and does not guarantee the accuracy of accounting or auditing data [2][3]. Group 2: Issues Raised in the Inquiry - The inquiry highlights that the former controlling shareholder, Sichuan Shengda Forest Products Group Co., Ltd., occupied company funds and provided guarantees without board or shareholder approval, leading to risk warnings for the company [3][4]. - The company claims that since the first major shareholder, Huabao Trust, took over in March 2020, there are no longer issues of fund occupation or illegal guarantees [3][4]. Group 3: Remedial Measures and Legal Actions - The company has taken several remedial measures to address the issues of fund occupation and illegal guarantees, including comprehensive audits, improving internal controls, and enhancing governance structures [5][6]. - Specific actions include pursuing legal claims against the former controlling shareholder for fund recovery, with a total of 13.53 million yuan recovered through litigation [7][8]. - The company is actively involved in ongoing litigation against banks and creditors to recover funds that were wrongfully deducted due to illegal guarantees [13][14]. Group 4: Current Legal Status and Financial Implications - As of the date of the legal opinion, the company has maintained effective internal controls and has not incurred new instances of fund occupation or illegal guarantees since January 1, 2021 [7][8]. - The company is currently involved in multiple legal proceedings, with some cases still pending in higher courts, which may impact its financial standing and obligations [22][23].