Baode International Development (00372) issued an announcement that the company's indirect non-wholly-owned subsidiary, Jiangsu Hongmao Storage Co., Ltd. (Jiang...
According to Zhitong Finance App, Baode International Development (00372) issued an announcement. Jiangsu Hongmao Storage Co., Ltd. (Jiangsu Hongmao), an indirect non-wholly-owned subsidiary of the company, recently received an arbitration application against Jiangsu Hongmao in relation to a construction contract dispute involving China Construction Third Bureau Third Construction Engineering Co., Ltd. (China Construction Third Bureau Third Construction Company) suspended in 2017.
According to the arbitration application, China Construction Third Bureau Third Construction Company filed the following claims: Jiangsu Hongmao must pay the China Construction Third Bureau Third Construction Company RMB 15.9014 million in construction costs; Jiangsu Hongmao must pay RMB 2412,000 in progress interest to China Construction Third Bureau Construction Company, and from the date of filing of arbitration until the actual repayment date, according to the loan market quoted interest rate and accrued interest settlement amount for the unsettled amount announced by the National Interbank Borrowing Center; within the scope of the amount of unpaid construction expenses, China Construction Third Bureau Construction Company will pay RMB 2412,000 in progress interest from the date of filing the arbitration until the actual repayment date. Evaluation or auction of the project Prices enjoy priority compensation; and Jiangsu Hongmao must pay legal fees and other miscellaneous costs relating to arbitration to the Third Construction Company of the China Construction Third Bureau.
The Group has consulted its Chinese legal counsel after receiving the notice of arbitration. According to the opinion of the Chinese legal adviser, the Group's defense is well-founded, and Jiangsu Hongmao will strongly defend the claim brought by China Construction Third Bureau Third Construction Company to protect its legal rights and interests.