The amount involved was 95.25 million yuan! Hainan Ruize Sues China Resources Building Materials Technology and Jingang Cement

Recently, Hainan Ruize New Building Materials Co., Ltd. (Hereinafter referred to as "Hainan Ruize") issued a notice on litigation matters. The announcement shows that Hainan Ruize has filed a lawsuit with the Suburban People's Court of Sanya City, Hainan Province, listing Huarun Building Material Technology Co., Ltd. and Zhaoqing Jingang Cement Co., Ltd. as defendants . The amount involved in the case is about RMB 95.25 million, as well as attorney fees, litigation fees, preservation fees, assessment fees, etc.

According to the announcement, the lawsuit has been accepted by the court, but has not yet been heard, and Hainan Ruize is the plaintiff in the case. As the case has not yet been heard, the impact on the company's current or future profits is uncertain. On July 29,

2022, Hainan Ruize and China Resources signed the Equity Transfer Agreement, which stipulated that Hainan Ruize would transfer 85% of its shares in Jingang Cement to China Resources. After the registration of equity change was completed on August 10, 2022, Jingang Cement was managed by China Resources Company alone, while Hainan Ruize retained only 15% equity and one board seat.

However, after China Resources took over the operation and management, Jingang Cement soon fell into a loss and shut down the kiln in June 2023. In April 2025, China Resources replaced Jingang Cement's "cement clinker production line capacity index of 2500 tons per day" to its affiliated company, China Resources (Fengkai) Cement Plant, without holding a shareholders'meeting. Hainan Ruize believes that the actions of China Resources have damaged the interests of Jingang Cement and its own minority shareholders, resulting in a serious devaluation of its 15% equity value, violating the equity transfer agreement, and should be liable for breach of contract and compensate for losses.

In addition, China Resources replaced the core assets of Jingang Cement to affiliated companies, resulting in the existence of Jingang Cement in name only, triggering the relevant provisions of the articles of association of Jingang Cement. Hainan Ruize, as a minority shareholder, has the right to request Jingang Cement to acquire 15% of its equity at the evaluation price. Because of the failure of negotiation with the two defendants, Hainan Ruize filed a lawsuit with the court.

Litigation request

1. Order the defendant, Huarun Building Material Technology Co., Ltd., to compensate the plaintiff for the loss of 15% equity value of Zhaoqing Jingang Cement Co., Ltd. of 17.7 million yuan (tentative, subject to actual assessment);

2. Order the defendant Zhaoqing Jingang Cement Co., Ltd. to purchase the 15% equity of Zhaoqing Jingang Cement Co., Ltd. held by the plaintiff at a price of 77.55 million yuan (tentative, subject to actual assessment);

3. The Defendant 1 Huarun Building Materials Technology Co., Ltd. shall be ordered to pay the Plaintiff the attorney fee of RMB 300,000 for this case;

4. The litigation fee, preservation fee, assessment fee and preservation insurance fee of this case shall be borne by the Defendant 2.

The announcement is as follows: