COL Group discloses $12.4m arbitration over unpaid FlareFlow advertising fees

COL Group (Shenzhen: 300364), the parent of the FlareFlow short-drama app, disclosed on 24 September 2026 that it and its subsidiaries had received an arbitration application from Hong Kong Pinzhong Interactive Network Marketing Technology (香港品众互动网络营销技术有限公司), filed with the Beijing Arbitration Commission.

The respondents are FlareFlow Pte. Ltd., COL Group, Guangdong Hengqin Yankun Technology, Nanjing Wangzong Information Technology and an individual. According to the filing, the agency was engaged under contracts dated 26 March 2025 and 30 July 2025 to open and top up advertising accounts on Facebook, TikTok and other platforms. It claims $12,119,538.43 in unpaid advertising fees for October 2025 to February 2026, plus late-payment interest of $319,792.49 calculated to 26 April 2026. The total amount in dispute is $12,442,620.92 and RMB159,080.

The case has been accepted and no hearing has taken place. About RMB2.91m of the group's bank balances, 0.98% of its latest audited net assets, and about 3.33% of the equity in one subsidiary have been frozen. COL Group said it is contesting the claim, that the effect on its results cannot yet be estimated, and that the freeze will not materially affect operations. The amounts are the claimant's and have not been adjudicated.