Understanding the Market | RONGTA TECH falls over 10%, with the amount of compensation increasing to approximately 975 million yuan

RONGTA TECH fell over 10%, as of the time of publication, down 10.08%, reported at HKD 9.9, with a transaction volume of HKD 1.886 million. In terms of news, on the evening of October 20, RONGTA TECH announced that on October 20, the company received a civil ruling from the Intermediate Court regarding a dispute, where the plaintiff has applied to the Intermediate Court to list the Group's executive director, chairman, and controlling shareholder Xu Kaiming as co-defendants in the civil lawsuit; and to increase the amount of damages claimed from the Group and Mr. A from the original claim of approximately RMB 200 million to a total of approximately RMB 975 million, of which Xu Kaiming must bear joint liability for RMB 965 million. The announcement pointed out that based on the current status of the dispute, the civil ruling and the new claim for damages are unlikely to have any significant adverse impact on the Group's business, financial condition, and operating performance for the fiscal year ending December 31 of this year. The controlling shareholder will compensate the Group for an amount exceeding HKD 9.4 million, and the Group has made sufficient provisions for the civil ruling. The Intermediate Court ruled that since the amount in dispute has now exceeded RMB 200 million, the dispute will be transferred to the Fujian Provincial High People's Court for handling