Suzhou Hailu Heavy Industry Co., Ltd. announced that the Suzhou Arbitration Commission has decided to resume the arbitration procedure between the company and Wu Weiwen and Jubaoxing Holding Group Co., Ltd. regarding the equity transfer contract dispute, and has accepted its amended request to add a demand for Wu Weiwen to pay cash compensation of 800 million yuan on top of the original share compensation. The arbitration stems from compensation matters related to performance commitments in the company's major asset restructuring. The company initiated arbitration in March 2019, requesting that shares held by the performance commitment party be repurchased for 1 yuan and cancelled. The process was previously suspended because Wu Weiwen was taken into criminal custody. The company has already taken preservation measures over 53,299,101 shares under Wu Weiwen's name and 44,210,526 shares under Jubaoxing's name. The company stated that the arbitration has not yet opened, and the final outcome will be subject to the ruling. This matter may have a certain impact on the profit and loss of relevant years.
Suzhou Hailu Heavy Industry Co LtdArbitration resumed with an added 800 million yuan cash compensation demand against Wu Weiwen, outcome uncertain and may affect profit/loss.
Jubaoxing is a respondent in the resumed arbitration, with 44,210,526 of its shares already under preservation.
