HCR(SH:688500) Xin Lang Cai Jing·2025-12-16 13:47Core Viewpoint - The company, Huichen Co., Ltd., has faced legal challenges regarding a performance compensation dispute related to its acquisition of a stake in Beijing Xintang Puhua Technology Co., Ltd., resulting in a court ruling that the defendants have no assets available for execution [2][5]. Group 1: Legal Proceedings - Huichen Co., Ltd. received an execution ruling from the Beijing First Intermediate People's Court, indicating that the defendants, including He Kancheng and related enterprises, currently have no assets available for execution, thus terminating the execution process [2][5]. - The dispute originated from a 2017 equity acquisition where Huichen Co. agreed to performance targets for Xintang Puhua, which were not met, leading to claims for compensation [2][3]. - In May 2024, Huichen Co. initiated arbitration seeking compensation for performance shortfalls and damages due to false statements, totaling approximately 13.8 million yuan [3][4]. Group 2: Financial Implications - The total amount involved in the dispute includes a principal of 164 million yuan, overdue penalties, and various fees related to legal proceedings [2]. - Following the arbitration ruling in October 2024, the defendants were ordered to pay the compensation within ten days, but they failed to comply, prompting Huichen Co. to seek enforcement through the court [4][5]. - Huichen Co. has already made provisions for potential losses related to this case, indicating that the termination of the execution process is not expected to negatively impact the company's financial results [5].