300139.SZ announced that the dispute over the "Public-Private Partnership Agreement for the purchase of Intelligent Metering equipment" between the company and the Emfuleni municipal government of South Africa was formally accepted by the GAUTENG local branch of the South African High Court in Johannesburg on May 19, 2020. on September 18, 2020, the company received the first instance judgment and won the case. Because the Emfuleni municipal government refused to accept the first instance judgment, the network trial was held again on October 15, 2020. Uphold the verdict of first instance.
On November 12, 2021, the company received the judgment issued by the High Court of the GAUTENG District of South Africa on November 11, 2021. IAM SEMENYA SC as the mediator, the company and the Emfuleni municipal government have reached a settlement and signed a settlement agreement.
The main terms of the settlement agreement include:
1. ELM (Emfuleni Municipal Government) will pay a total of about 4% to the company..200 million rand.
2. The original PPP Agreement shall be resumed for the rest of its term until it expires on March 1, 2024.
3. The settlement agreement stipulates that for the remaining period, the company shall, if necessary, repair or replace all meters installed as of June 14, 2019 and damaged between June 14, 2019 and effective date, and shall continue to install prepaid meters so that the total number of installed and operated meters will reach 1 by the end of the term of the PPP agreement..There are 250000 water meters, and the number of prepaid water meters has reached 5000.
The amount of the above services is about 478.680000 rand. The amount is about 290.940000 rand (monthly fixed cost) and 187rand.740000 rand (based on the variable amount of the meter installed during the invoice).
4. During the mediation, the parties and the conciliator will deal with about 4..200 million rand and 478.The details of the two payments of 680000 rand were investigated, questioned and finalized.
So far, the company has recovered about 1..9.6 billion rand, the remaining payment will be paid in the near future. When the company receives the payment, it will have a positive impact on the cash flow.