Securities code: Ningbo Lehui International Engineering Equipment Co.Ltd(603076) securities abbreviation: Ningbo Lehui International Engineering Equipment Co.Ltd(603076) Announcement No.: 2022012 Ningbo Lehui International Engineering Equipment Co.Ltd(603076)
Announcement on the progress of arbitration matters
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Arbitration stage of the case: Final Award
Status of Applicant: listed company
Amount involved: 545310577 euros and interest
Whether it will have a negative impact on the profits and losses of the listed company: the arbitration result of this announcement is the final award, which is expected to reduce the company’s profit by about 31 million yuan in 2021 (the final result shall be subject to the audit result of the accounting firm).
1、 Basic information of this arbitration
In March 2020, Ningbo Lehui International Engineering Equipment Co.Ltd(603076) (hereinafter referred to as “the company” and “the applicant”) submitted an application for arbitration to the German institution f ü R schiedsgerichtsbarkeit e.V. (hereinafter referred to as “the German arbitration institution” or “dis”), As Max automation Ag (hereinafter referred to as “Max”, “respondent 1”) and nsmmagnettechnik GmbH (hereinafter referred to as “NSM” and “respondent 2”) have seriously violated the relevant provisions of the equity sale, purchase and transfer agreement, resulting in significant economic losses to the company, Max and NSM are required to jointly or separately pay € 9.5 million and interest to the applicant. For details, see the company’s disclosure on the website of Shanghai Stock Exchange (www.sse. Com. CN.) on December 28, 2019 Announcement on the proposed arbitration of Max and NSM (Announcement No.: 2019053) and disclosed on the website of Shanghai Stock Exchange (www.sse. Com. CN) on March 12, 2020 Announcement on filing an arbitration claim of 9.5 million euros and interest against the original transferor of the German subsidiary (Announcement No.: 2020008).
In June 2020, the company received the respondent Max and NSM’s defense and counterclaim sent by the German arbitration institution, requiring the company to pay 4 counterclaims including 397375000 euros and interest to max. For details, see the company’s disclosure on the website of Shanghai Stock Exchange (www.sse. Com. CN.) on June 13, 2020 Announcement on the progress of filing an arbitration claim of 9.5 million euros and interest against the original transferor of the German subsidiary (Announcement No.: 2020044).
2、 Arbitration award
Recently, the company received the “final award” made by the German arbitration institution dis. This award is final. The main contents are as follows:
1. With regard to the applicant’s request, the arbitral tribunal:
(1) Reject the applicant’s request that respondent 1 and respondent 2 jointly or separately pay € 950000000 and interest to the applicant.
(2) If the claimant’s claim for relief in the amount of 224713847 euros is based on the loss sharing clause in section 3.8 of the equity sale purchase and transfer agreement as amended by the Amendment Agreement, the arbitration tribunal will temporarily reject it.
(3) Reject the applicant’s request that respondent 1 and respondent 2 be jointly and severally liable for all further damages caused to the applicant due to the respondent’s fraud or error or misrepresentation in the acquisition and purchase of the shares of NSM packtec GmbH before and the relevant agreements and obligations subsequently signed and executed by the respondent.
2. With regard to the respondent’s counterclaim, the arbitral tribunal:
(1) Agree and order the applicant to pay € 397375000 to respondent 1, plus interest of 5 percentage points per year higher than the benchmark interest rate from June 8, 2020, but not more than 5% per year, until paid in full;
(2) Agree and order the applicant to pay € 65000000 to respondent 1, plus interest of 5 percentage points higher than the benchmark interest rate but not more than 5% from January 1, 2019 until paid in full; (3) The respondent’s request to compensate applicant 1 and applicant 2 for the third-party claims arising from any guarantee, compensation, guarantee and similar guarantee provided by applicant 1 in favor of finnah packtec GmbH listed in the equity sale, purchase and transfer agreement shall not be accepted and rejected.
3. With regard to costs, the arbitral tribunal:
(1) Order the applicant to pay 63000000 euros to the respondent as compensation for the respondent’s legal fees and expenses;
(2) The applicant was ordered to pay € 2259462 to the respondent in order to compensate the respondent for the costs of the venue of the hearing, the supplier’s virtual hearing, the translation services of the oral hearing and the court records.
(3) The respondent shall pay dis 176.1 euros to the respondent’s administrative order and the respondent’s fee of dis 176.15 euros to the respondent.
4. The arbitral tribunal rejected all other requests for relief and motions of the parties.
3、 The impact of the arbitration announced this time on the company’s profits in the current period or after the period
The arbitration result of this announcement is the final award, which is expected to reduce the company’s profit by about 31 million yuan in 2021 (the final result shall be subject to the audit result of the accounting firm).
At present, the company’s operations are normal, and the above arbitration results have no significant impact on the company’s business operation, financial status and solvency. The company will continue to pay attention to the progress of the above cases and fulfill the obligation of information disclosure in time. Please pay attention to investment risks.
4、 Filing documents
Final award issued by German arbitration institution dis
It is hereby announced.
Ningbo Lehui International Engineering Equipment Co.Ltd(603076) board of directors
April 11, 2002
