The High Court of England recently declared that the 2021 transaction in which SMCP’s former owner, Shandong Ruyi, sold a 15.9% stake in SMCP to Dynamic Treasure Group through its Luxembourg subsidiary, European TopSoho, is invalid. GLAS, a creditor of SMCP, issued a statement accusing Dynamic Treasure of being controlled by Qiu Chenran, daughter of Shandong Ruyi Group’s chairman Qiu Yafu, and claimed the sale violated corporate governance rules. SMCP stated that it expects the court to soon issue an injunction requiring Dynamic Treasure to return the 15.9% stake, which is currently being liquidated by European TopSoho in Luxembourg.