Shanghai Yashi's wholly owned subsidiary Hubei Yashi has been sued over a contract dispute, with 41 million yuan in some bank accounts frozen. Laiwu Gaoxin Investment Holding Co., Ltd. filed a lawsuit with the Laiwu District People's Court in Jinan, seeking to confirm that the Product Purchase and Sale Agreement signed by both parties on November 13, 2024, is invalid, and to order Hubei Yashi to return the 40.9836 million yuan already paid plus overdue interest. The plaintiff claims that, according to an effective ruling in another case, there was no genuine purchase and sale relationship between the parties, and the contract is invalid due to sham intent. On the same day, Laiwu Gaoxin also signed another contract with a third party, Shandong Taijia New Material Technology Co., Ltd., for the exact same subject matter, with an amount of 50.4414 million yuan, the two contracts differing only slightly in value. In its announcement, Shanghai Yashi disagreed with the plaintiff's claims and stated it will actively defend the case. The company said the frozen accounts involve a balance of 8.152 million yuan and 26,700 US dollars, and that it has other accounts that can be used normally, with no material adverse impact on operations for the time being.
Shanghai Ace Invest&Dvlp CoSubsidiary sued over contract validity, 41 million yuan frozen, potential liability.