ST Gudi announced that it has received a ruling from the Inner Mongolia Autonomous Region High People's Court regarding the case where Ningxia Construction Engineering Group Second Branch sued the company for an objection to the addition of an enforcement obligor. The first-instance judgment has been revoked and the case remanded for retrial. The case stems from a construction contract dispute between the company's former wholly-owned subsidiary, Alxa League Dream Car Cultural Tourism Development, and Ningxia Construction Engineering, involving an amount of 109,453,514.97 yuan plus enforcement fees. The first-instance court had ruled to add Gudi Technology as an enforcement obligor with joint and several liability, and the company appealed. Dream Car was divested from the company in May 2023. The company stated that it has already made a provision for estimated liabilities for this litigation based on the principle of prudence, and if it ultimately loses the case, it could have a significant negative impact on profits and net assets.
Goody Science & Technology Co LtdCourt remanded construction contract dispute for retrial, potentially adding company as enforcement obligor with joint liability.
Former subsidiary involved in dispute but divested in May 2023.
