HUAKONG SEG(SZ:000068) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-10-01 05:19Core Viewpoint - The Supreme People's Court of China has rejected the retrial application from Tongfang Investment Co., Ltd., which sought to overturn previous civil judgments against it, affirming the lower court's decisions and indicating that the case will not impact the company's current or future profits [2][3][15]. Group 1: Case Background - The case involves a dispute between Shenzhen Huakong Saige Co., Ltd. and Tongfang Investment Co., Ltd. regarding the ownership of 40.5% shares in Tongfang Environment Co., Ltd. [4][10]. - The initial judgment from the Weifang Intermediate People's Court ruled in favor of Tongfang Investment, which led to further arbitration requests and appeals [4][5]. - The Supreme People's Court's decision to dismiss the retrial application confirms the validity of the previous judgments and the handling of the share ownership dispute [5][14]. Group 2: Financial Implications - The Supreme Court's ruling will not affect the company's profits for the current or future periods, as the company has already accounted for the relevant share ownership in its financial statements [3][15]. - The company has executed the second-instance judgment from the Shandong High Court and has processed the accounting for the 20.25% stake in Tongfang Environment Co., Ltd. accordingly [3][15]. Group 3: Legal Proceedings - The legal proceedings included multiple stages, with the initial judgment, subsequent appeals, and arbitration requests leading to the final ruling by the Supreme People's Court [4][10][12]. - The court found that the original judgment regarding the distribution of shares was appropriate, as both parties were deemed equally responsible for the invalidity of the underlying agreements [11][12][13].