Securities code: 002542 securities abbreviation: China Zhonghua Geotechnical Engineering Group Co.Ltd(002542) Announcement No.: 2022-008 China Zhonghua Geotechnical Engineering Group Co.Ltd(002542)
Announcement on litigation and Arbitration
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
1. The arbitration stage of the case: the arbitration institution has accepted the case;
2. The party status of the listed company: Qiangqiang International Engineering Co., Ltd., a wholly-owned subsidiary of the company, is the respondent;
3. Amount involved: at present, the amount involved in the arbitration request is HK $261143433.76 (excluding the amount involved that has not been clarified);
4. Impact on the profits and losses of listed companies: as the arbitration case disclosed this time has not been closed, it is impossible to judge the impact of the above disclosure cases on the company’s current profits or future profits as a whole. The company will actively respond to this arbitration (including making anti arbitration requests), fully safeguard the legitimate interests of the listed company and all shareholders, pay close attention to the progress of the above related cases, and timely fulfill the obligation of information disclosure. Please pay attention to investment risks.
1、 Basic information on the acceptance of this arbitration
Strong international engineering Co., Ltd. (hereinafter referred to as “strong international”), a wholly-owned subsidiary of China Zhonghua Geotechnical Engineering Group Co.Ltd(002542) (hereinafter referred to as “the company”), recently received an email from Hong Kong International Arbitration Center, The content involves the arbitration request filed by pentone Hong Kong Limited Hong Kong Hengtong Co., Ltd. (hereinafter referred to as “Hong Kong Hengtong”) on the disputes related to the subcontract for PVD, gravel pile, DCM and vibro compaction of foundation treatment works of main reclamation works of the third runway system project of Hong Kong Airport (contract lot-3206).
(I) information of the applicant
Name: pentone Hong Kong Limited
Address: Room 3, 5 / F, xiequn commercial building, 38 Bi street, Yau Ma Tei, Kowloon, Hong Kong
Agent: Hogan Lovells (Huojin Luwei law firm)
(II) information of the respondent
Name: Qiangqiang International Engineering Co., Ltd
Address: room 1003, 10 / F, tower 2, Newport Centre, 30 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong
Agent: Reed Smith Richard Butler LLP
2、 Basic information of this arbitration case
(I) facts and causes of the arbitration case
As a subcontractor, Qiangqiang international signed the third contract of Hong Kong airport with Hong Kong Hengtong in March 2017
The subcontract for PVD, gravel pile, DCM and vibro compaction of the foundation treatment works of the main reclamation works of the runway system project (contract lot-3206), with the subcontract price of HK $2941208858.10, and the supplementary agreement was signed in August 2018.
Hong Kong Hengtong believes that during the implementation of the subcontract, Qiangqiang international failed to fulfill its obligations under the subcontract. In order to avoid further delay of the subcontract project, with the knowledge and consent of Qiangqiang international, Hong Kong Hengtong paid various amounts on behalf of Qiangqiang international to promote the continuation of the subcontract. The claim of Hong Kong Hengtong is that as of December 7, 2021, Qiangqiang international owes Hong Kong Hengtong HK $261143433.76 for promoting the implementation of the subcontract. Due to the above matters, Hong Kong Hengtong filed an application for arbitration with Hong Kong International Arbitration Centre.
(II) arbitration claim
The current arbitration request of Hong Kong Hengtong: 1. Pay HK $261143433.76 for the expenses incurred by Hong Kong Hengtong to promote the implementation of the subcontract or the amount that the arbitrators think should be paid to Hong Kong Hengtong under the subcontract; 2. Further and / or alternative compensation in case of breach of subcontract; 3. Demand the payment of interest on the above amount; 4. Require payment of costs and such further or other remedies as the arbitrator deems appropriate. The final arbitration request shall be subject to the arbitration application submitted by the arbitration applicant in accordance with the arbitration rules of Hong Kong International Arbitration Centre.
3、 Arbitration award
Hong Kong International Arbitration Centre has accepted the case recently. At present, the case has not entered the stage of trial and arbitration.
4、 Other undisclosed litigation and arbitration matters
The minor litigation and arbitration matters not disclosed by the company (including the holding company) before this announcement are as follows:
Time for the company to receive the notice on the progress of the amount involved in the case of the plaintiff / application acceptance machine or the notice on the cause of action of the respondent / defendant (10000 yuan)
Huzhou Chengyuan Real Estate Development Co., Ltd
Shanghai Qiangqiang Co., Ltd. / Huzhou south of Zhejiang Jiayuan Hangcheng Construction Industry Co., Ltd
1 in January 2022, foundation engineering real estate Group Co., Ltd. / Cheng subcontracting taihuxin 2448.84 has been subject to the contract rectification of Zhejiang Jiayuan Real Estate Group Co., Ltd. / Jiayuan Chuangsheng holding court
Group Co., Ltd
Shanghai Qiangqiang Construction Engineering Co., Ltd. Guangzhou
2. In January 2022, the foundation engineering contract of Ningbo Yucheng Real Estate Co., Ltd. has been accepted by the people’s Court of justice for disputes over joint stock limited in Huangpu District 1617.30
China 20 Shanghai Yuanyuan Foundation Engineering Co., Ltd. Construction Engineering Shanghai Zhong has been accepted by the arbitration committee 1419.26 of the project contract of MCC group in February 2022
Subtotal 5485.40-
4. There are 16 lawsuits and arbitrations with other amount less than 10 million 2837.29-
Total 8322.69-
The company has no other litigation and arbitration matters that should be disclosed but not disclosed.
5、 The possible impact of the arbitration announced this time on the company’s profits in the current period or after the period
Since the arbitration matters announced in this announcement have not been settled, the impact of the above matters on the company’s current and future profits is uncertain. The company will actively respond to this arbitration (including making anti arbitration requests), fully safeguard the legitimate interests of the listed company and all shareholders, pay close attention to the follow-up progress of the above matters, and timely fulfill the obligation of information disclosure. Please pay attention to investment risks.
6、 Documents for future reference
1. Relevant materials of Hong Kong Hengtong and strong international arbitration cases;
2. Other documents required by Shenzhen Stock Exchange.
It is hereby announced.
China Zhonghua Geotechnical Engineering Group Co.Ltd(002542) board of directors
February 18, 2022
