What happened
ST Rongke (300290.SZ, Rongke Technology Co., Ltd.) said on September 3 that it received a civil complaint and court rulings from the Shenyang Intermediate People's Court. Fushun Bank is the plaintiff, and the defendants include the company, its former controlling shareholder Liaoning Guoke Industrial Co., Ltd., and several other companies and individuals.
The case relates to a guarantee allegedly signed in November 2020 for a loan from Fushun Bank to Shenyang Zhiyuan Petrochemical Co., Ltd. The plaintiff is claiming 100,920,547.34 yuan, including loan principal of 74,969,932.9 yuan plus interest and penalties. Rongke noted this is one of six irregular guarantee matters, totaling 785 million yuan, that it previously disclosed, and it is the second such matter found in its self-inspection; the guarantee principal in this case is 75 million yuan.
Rongke said it found no copy of the guarantee contract in its records, no company seal usage for it, and no board or shareholder meeting approval. The company maintains the guarantee was made without internal authorization while under the former controlling shareholder's control and will argue the contract has no effect on the company. The company also reported that one new bank account was frozen and two previously frozen accounts received additional sequential freezes, with newly frozen funds of 21,625.67 yuan.
Why it matters
The lawsuit highlights the ongoing fallout from alleged governance failures under the former controlling shareholder. The cumulative frozen amount across four accounts is 22,456,356.29 yuan, which represents 15.35% of the company's latest audited monetary funds, though only 2.7% of its net assets. The company says operations are unaffected because the frozen accounts belong to headquarters, while its main business is conducted in subsidiaries.
A court ruling against Rongke could create a significant financial liability, while a ruling in its favor would reinforce its claim that the guarantee was unauthorized. The case also adds uncertainty to the company's profit outlook, as it said the final judgment is not yet determined and will affect profits depending on the outcome.
Key facts
ST Rongke has a total of four bank accounts frozen, with actual frozen funds of 22,456,356.29 yuan.
Fushun Bank is suing the company for 100,920,547.34 yuan related to a joint liability guarantee for a loan to Shenyang Zhiyuan Petrochemical.
The guarantee allegedly originated in November 2020, but the company says its records contain no contract, no seal records, and no board or shareholder approval.
What to watch next
The court's decision on the validity of the guarantee contract is the key event to watch. The company has stated it will argue in court that the guarantee contract does not take effect against it.
The company said it has hired a professional legal team, is actively responding to the lawsuit, and is negotiating with creditors and the former actual controller to seek relief from liability. Any progress in those talks or additional legal actions involving the other irregular guarantees may follow.