Core Viewpoint - The company, Jinlongyu, publicly responded for the first time after its subsidiary was convicted of contract fraud, emphasizing that it was misled and not involved in any fraudulent activities [2][4]. Group 1: Company Response - Jinlongyu held an investor communication meeting attended by key executives to clarify the situation following the court ruling against its subsidiary, Guangzhou Yihai [2]. - The company claims that the losses incurred by Anhui Huawen were due to collusion between Anhui Huawen and Yunnan Huijia, asserting that Guangzhou Yihai was the deceived party [2][7]. - The company has filed an appeal against the first-instance ruling, which found Guangzhou Yihai guilty of contract fraud and ordered it to jointly compensate Anhui Huawen for losses amounting to RMB 18.81 billion [2][4]. Group 2: Details of the Case - The case involves allegations that Yunnan Huijia, through bribery, manipulated the transaction terms with Anhui Huawen, leading to significant financial discrepancies [6][8]. - The prosecution's indictment indicated that employees of Guangzhou Yihai accepted bribes and assisted in the fraudulent activities, but the company maintains that it was unaware of any wrongdoing [7][8]. - The timeline of the alleged fraudulent activities spans from 2008 to 2014, with the company asserting that all related business operations ceased in July 2014 [7][8]. Group 3: Company’s Defense - The company provided six reasons to support its claim of non-involvement in the fraud, highlighting the complicity of Anhui Huawen's management in the fraudulent activities [8][9]. - It was noted that the total storage capacity of Guangzhou Yihai is only 160,000 tons, making it implausible for the company to have stored over 1 million tons of palm oil as claimed by Anhui Huawen [9]. - The company emphasized that it has strict internal control processes and that any actions taken by former employees were personal and not representative of the company's practices [11].

Core Viewpoint - The company, Jinlongyu, publicly responded for the first time after its subsidiary was convicted of contract fraud, emphasizing that it was misled and did not participate in any fraudulent activities [3][4]. Group 1: Company Response - Jinlongyu held an investor communication meeting attended by key executives to clarify the situation regarding its subsidiary, Guangzhou Yihai, which was implicated in a contract fraud case [3]. - The company stated that the losses incurred by Anhui Huawen were due to collusion between Anhui Huawen and Yunnan Huijia, asserting that Guangzhou Yihai was the deceived party [3][7]. - Following the court's ruling, Jinlongyu's stock price fell for two consecutive days, resulting in a market value loss of over 10 billion yuan [3]. Group 2: Legal Proceedings - The case is currently in the appeal stage, and the company plans to apply for a retrial if the appeal is unsuccessful [4]. - The court found Guangzhou Yihai guilty as an accomplice in the contract fraud, with a financial liability of 1.881 billion yuan alongside Yunnan Huijia [3][4]. Group 3: Defense Arguments - The company presented six reasons to defend itself against the fraud allegations, including the assertion that the fraudulent actions were orchestrated by Anhui Huawen and Yunnan Huijia [7][9]. - It was highlighted that the fraudulent activities occurred between 2008 and 2014, and that Anhui Huawen had not raised any issues with Guangzhou Yihai until 2021, nearly a decade later [7][9]. - The company emphasized that it had strict internal control processes in place during the relevant period and denied any compliance issues [11]. Group 4: Operational Insights - Jinlongyu's total oil tank capacity is only 160,000 tons, making it implausible for it to store over 1 million tons of palm oil as claimed by Anhui Huawen [9]. - The company has established an AI technology application team to enhance operational efficiency and market competitiveness through data analysis and AI applications [11].