Zhejiang Unifull High-Tech Fiber Co., Ltd. announced that the company, its controlled subsidiary Huzhou Nanxun Taihe Paper Co., Ltd., and a shareholder surnamed Yin holding a 30% stake have signed a settlement agreement. Unifull will acquire Yin's entire stake in Taihe Paper for a total price of 8.8 million yuan, thereby resolving litigation over shareholder information rights and damages. The dispute arose from the plaintiff's claim that Unifull sold all of Taihe Paper's products through internal transactions in 2023 at prices 35.28 million yuan below market value, causing Taihe Paper to incur losses. A court of first instance had ordered Unifull to pay 11.47 million yuan plus interest in compensation to Taihe Paper. After Unifull appealed, the parties reached a settlement through negotiation. The total settlement amount covers the consideration for the 30% equity transfer and all dividend rights of the shareholder, with all parties confirming that all disputes are fully resolved. The company stated that the final accounting treatment and impact on profits will be subject to confirmation by the auditor in the annual audit.
Zhejiang Unifull Industrial Fibre Co LtdUnifull acquires 30% stake in Taihe Paper for 8.8 million yuan, settling a shareholder dispute; financial impact depends on auditor confirmation.
Taihe Paper is the subsidiary whose stake is acquired; the settlement resolves litigation but financial impact is unclear.