Aerospace Power disclosed on September 23 an update on litigation brought by small and medium investors. The company received a civil judgment from the Xi'an Intermediate People's Court in Shaanxi Province concerning the first-instance ruling in lawsuits involving 112 investors, with compensation of 5.4143 million yuan including litigation fees and related expenses. Previously, in March 2024, the company disclosed that it had received an administrative penalty decision from the China Securities Regulatory Commission. It was penalized because its intelligent data module business inflated revenue and profit from 2016 to 2020, causing false records in relevant periodic reports. The commission determined that this business was one link in Sui Tianli's private network communications self-circulation operation, that Aerospace Power was effectively a funding conduit for the transactions, and that all related transactions were fictitious and lacked commercial substance. In January this year, the company received a first-instance judgment in lawsuits involving 95 investors, with an amount of 16.0818 million yuan including litigation fees and related expenses, and 146 investors were granted permission to withdraw their suits. The latest announcement shows that as of the disclosure date, there were 668 investor lawsuits against Aerospace Power in total. Of these, 258 have obtained effective court rulings and have been fully executed, 269 investors have reached settlements with the company and all settlement payments have been made, and 113 investors have received first-instance judgments. The company said the compensation amounts involved in the rulings have been accrued as estimated liabilities, and it will actively respond to the lawsuits in accordance with legal procedures.
Shaanxi Aerospace Power Hi-Tech Co LtdCourt ordered Aerospace Power to pay 5.41 million yuan to 112 investors over securities misrepresentation, adding to its litigation liabilities.
