HK Stock Market Move | RONGTA TECH(09881) fell more than 10%, with the amount of compensation increased to approximately 975 million yuan.

RONGTA TECH (09881) fell more than 10%, as of the time of writing, it has dropped by 10.08% to HK$9.9 with a turnover of HK$1.886 million. On the news front, on the evening of October 20th, RONGTA TECH announced that on October 20th, the company received a civil ruling from the Intermediate Court regarding a dispute. The plaintiff has applied to the Intermediate Court to designate the group's executive director, chairman, and controlling shareholder, Xu Kaiming, as a co-defendant in the civil lawsuit; and to increase the compensation claimed from the group and Mr. A from approximately RMB 200 million to a total of approximately RMB 975 million, of which Xu Kaiming is jointly liable for RMB 965 million. The announcement stated that based on the current status of the dispute, the civil ruling, and the new claim amount, it is unlikely to have any significant adverse impact on the group's business, financial condition, and operating performance for the year ending December 31st. The controlling shareholder will compensate the group for an amount exceeding RMB 9.4 million and the group has made adequate provisions for the civil ruling. The Intermediate Court ruled that since the amount in dispute exceeds RMB 200 million, the case will be transferred to the Higher People's Court of Fujian Province for further handling.