Kaifushan Group Holdings (08512) issued an announcement. The relevant customer filed a claim of about US$6.8 million (equivalent to about 53...
According to the Zhitong Finance App, Kaifushan Group Holdings (08512) issued an announcement regarding matters relating to the customer's claim of approximately US$6.8 million (equivalent to approximately HK$53 million) to compensate for business losses caused by the recall of affected products. On March 28, 2024, the company reached a settlement agreement with the customer. The Group will pay the customer a compensation amount of US$3 million (equivalent to approximately HK$23.3 million) in four instalments, and the company will be exempted from any further liability (settlement) to the customer in respect of the claim.
Since it was not possible to determine the final settlement time and amount of the claim when preparing the company's audited comprehensive financial statements for the year ended 31 December 2023, the full amount of the claim amount was provided for $6.8 million (equivalent to approximately HK$53 million) in fiscal year 2023. After reaching a settlement agreement, the Group is expected to obtain a recovery of US$3.8 million (equivalent to approximately HK$29.7 million) from the claim provision for the year ended 31 December 2024. Shareholders and potential investors of the Company should note that the above financial effects of the settlement are for illustrative purposes only and are based only on currently available data. They will be determined when preparing the Company's comprehensive financial statements and are subject to review.