ST Tongde's wholly-owned subsidiary Tongde Sci-Tech Materials has been taken to arbitration by Shaanxi Chemical Construction Engineering over a construction contract dispute, with the total amount involved reaching RMB 55.1 million. The claimant is seeking payment of RMB 52.86 million for completed work and RMB 2.24 million in overdue interest, and is asserting a priority right to be paid from the discounted or auction proceeds of the project in question. The arbitration stems from Tongde Sci-Tech's PBAT new materials integrated industrial chain project, where the respondent's cash flow difficulties led to multiple work stoppages. The claimant has not resumed work since halting on December 20, 2024, and has notified the termination of the contract. Last year, ST Tongde reported a net loss attributable to shareholders of the listed company of RMB 1.093 billion, and it expects to continue posting a loss of RMB 38 million to RMB 55 million in the first half of this year.
Shanxi Tond Chemical Co LtdSubsidiary faces arbitration over construction contract dispute involving RMB 55.1 million, adding to financial losses.
Shaanxi Yanchang Petroleum Chemical Engineering Co Ltd