--- title: "SANAI HEALTH GP is required to pay 120 million RMB as per the final ruling, assessing the impact of the lawsuit on the financial statements" type: "News" locale: "en" url: "https://longbridge.com/en/news/286486504.md" description: "SANAI HEALTH GP has been ordered by the Beijing High People's Court to pay approximately RMB 120 million in litigation costs. The group will bear joint liability, and this ruling is expected to impact its cash and net assets. The group stated that it has sufficient cash to settle the litigation amount and is currently assessing the impact on its financial statements" datetime: "2026-05-15T00:42:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286486504.md) - [en](https://longbridge.com/en/news/286486504.md) - [zh-HK](https://longbridge.com/zh-HK/news/286486504.md) --- # SANAI HEALTH GP is required to pay 120 million RMB as per the final ruling, assessing the impact of the lawsuit on the financial statements According to a report from Economic Information Agency on the 15th, SANAI HEALTH GP (01889) announced that it has received a civil judgment from the Beijing High People's Court regarding the second appeal, which includes the revocation of the judgment from the Beijing Fourth Intermediate People's Court; the payment responsibility of Fujian SANAI for the plaintiff has been confirmed to be approximately 120 million yuan (RMB, the same below), and the plaintiff must declare the relevant claims in the liquidation process of Fujian SANAI, but cannot be individually repaid; the group, Lin Ouwen, and Lin Min must bear joint liability for the litigation amount, and after fulfilling the joint liability, have the right to seek compensation from Fujian SANAI in the liquidation process; any other claims made by the plaintiff have been dismissed; and the rulings contained in the final judgment are final. The group indicated that the payment responsibilities include approximately 59.321 million yuan of unpaid principal from financing lease agreements, approximately 3.116 million yuan in interest, approximately 53.98 million yuan in unpaid default interest, approximately 2.781 million yuan in penalties, 800,000 yuan in legal fees, and 176,000 yuan in preservation insurance fees. Based on the final judgment, it is expected that the litigation amount will reduce the group's cash and cash equivalents as well as net assets. The group has sufficient cash to settle the litigation amount. Prior to the date of the final judgment, the group did not make any provisions for estimated liabilities related to lawsuits for past years where auditors expressed reservations, as the auditors were unable to obtain sufficient appropriate audit evidence to assess whether any provisions should be made, and is currently evaluating the impact of the lawsuit on the consolidated financial statements for the year ending December 31 of this year. After fulfilling the joint liability for the litigation, the group has the right to seek compensation from other defendants and related parties and may take other remedial measures to minimize losses. (wh) ### Related Stocks - [01889.HK](https://longbridge.com/en/quote/01889.HK.md) - [159837.CN](https://longbridge.com/en/quote/159837.CN.md) - [159929.CN](https://longbridge.com/en/quote/159929.CN.md) - [588130.CN](https://longbridge.com/en/quote/588130.CN.md) - [512290.CN](https://longbridge.com/en/quote/512290.CN.md) - [512010.CN](https://longbridge.com/en/quote/512010.CN.md) - [510660.CN](https://longbridge.com/en/quote/510660.CN.md) ## Related News & Research - [China’s Clinical Trial Registrations Surpass 5,000 for First Time in 2025](https://longbridge.com/en/news/290539713.md) - [Flow Pharma U.S. Patent Application Allowed for Issuance Covering Broad-Spectrum Ebola Therapy](https://longbridge.com/en/news/287076761.md) - [Kiu Hung International agrees to buy 51% stake in Fujian Laojiu Sales for HK$100 million via convertible bonds](https://longbridge.com/en/news/290974093.md) - [Reevemark Receives Top “Band One” Rankings in Both Litigation and Crisis PR by Chambers and Partners for 2026](https://longbridge.com/en/news/290836135.md) - [Carmila says Carrefour unit CRFP 13 holds 29.9971% stake](https://longbridge.com/en/news/290858583.md)