DS CULTURE(SH:600892) Zheng Quan Zhi Xing·2025-08-27 12:12Core Viewpoint - The company has announced that part of its bank account funds has been frozen due to a legal dispute involving a creditor's rights case with Qinhuangdao Xinda Asset Information Co., Ltd. [1] Summary by Sections Frozen Funds Situation - The total amount of frozen funds is RMB 522.43 million, distributed across various bank accounts, including: - Everbright Bank: RMB 503.49 million - Citic Bank: RMB 13.81 million - Bank of China: RMB 4.87 million - Industrial and Commercial Bank: RMB 0.19 million - China Construction Bank: RMB 0.08 million [2] Reason for Frozen Funds - The dispute originates from a loan of RMB 2.5 million taken by Shijiazhuang Crown Bag Co., Ltd. in 1999, which was guaranteed by Hebei Longhai Metallurgy Co., Ltd. The loan went unpaid, leading to a court ruling in 2004 that required repayment, which has not been fulfilled. The creditor's rights have since been transferred to Xinda Company [3][4]. Legal Proceedings - The first instance ruling by Xinhua District Court in November 2024 ordered the company and two other entities to bear the costs associated with the case, totaling RMB 48,753.61 for litigation fees and RMB 400 for announcement fees. The company appealed this decision, but the appeal was rejected [3]. - The company has applied for a retrial at the Hebei High Court, which has accepted the application and is currently under review [4]. Impact on the Company - The frozen funds represent 6.84% of the company's audited net assets as of December 31, 2024, and 9.62% of the unaudited cash balance as of March 31, 2025. However, the company believes that this situation will not significantly impact its operational activities [4].