Securities code: 000893 securities abbreviation: Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) Announcement No.: 2022-003
Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) investment (Guangzhou) Co., Ltd
Announcement on the progress of overseas 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.
Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) investment (Guangzhou) Co., Ltd. (hereinafter referred to as the “company”, Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) ) and
The overseas company Mitsui & Co. (USA), Inc. (hereinafter referred to as “Mitsui”) is involved in the mining of Brazilian soybeans
The Federation of oils, seeds and
The appeal decision No. 1163 of fat associations (hereinafter referred to as “FOSFA”) and the order of the British High Court on the company’s appeal against the appeal decision No. 1162 are hereby announced as follows:
1、 Basic information of the arbitration
(I) arbitration applicant: Mitsui & Co. (USA), Inc
(II) arbitration respondent: Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) investment (Guangzhou) Co., Ltd
(III) basic case
In May 2012, Guangzhou Dongling grain and Oil Co., Ltd. (now renamed Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) investment (Guangzhou) shares
Ltd.) signed a contract with Mitsui to purchase 60000 metric tons of Brazilian soybeans from Mitsui. When the cargo ship docked at the Brazilian wharf to load soybeans, due to the collision between the cargo ship and the wharf loading facilities, all Brazilian soybeans were not loaded in time and damaged, resulting in disputes over the loss of soybeans. In September 2012, Mitsui informed the company in writing that the “force majeure” event under the sales contract occurred, and the shipment period can be extended for 60 days according to the regulations. After the expiration of 60 days after Mitsui declared the force majeure, it did not notify the company whether the matter was resolved. The company announced the invalidation of the contract to Mitsui in writing according to the contract. November 2012 Mitsui
If the company disagrees with the unilateral invalidation of the contract, it shall submit it to FOSFA Committee for arbitration. May 12, 2017
On the th, the company received a letter from FOSFA informing the overseas company Mitsui of the dispute over the purchase contract of Brazilian soybeans
Apply for arbitration against the company and have paid relevant arbitration fees. The arbitration institution is FOSFA. In August 2020, the company received the arbitration award No. 4606 / 4606a issued by FOSFA. The company’s external lawyers and legal advisers believe that this ruling is extremely unfair, and the company decided to appeal to the FOSFA Appeal Committee.
For details of this overseas blanking, please refer to the company’s website at cninfo.com（ http://www.cn.info.com.cn. ）The relevant announcements disclosed are as follows:
Announcement date announcement name index
Http / / www.cninfo.com.cn on overseas arbitration matters
May 17, 2017
Announcement（ http://www.cn.info.com.cn. ）
Http / / www.cninfo.com.cn on overseas arbitration matters on August 6, 2020
Progress announcement（ http://www.cn.info.com.cn. ）
3、 Judgment or award
In response to appeal decision No. 4606 / 1162, the decision was as follows:
1. The Appeal Board considered that it had no jurisdiction to decide on the validity of the arbitration between Mitsui and its upstream suppliers, so it rejected the company’s appeal.
2. Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) bear the costs, costs and expenses of this appeal amounting to £ 22600.00.
3. Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) shall bear the legal expenses related to Mitsui’s lawsuit. If there is any objection, such expenses shall be evaluated.
The company considered that the appeal decision made by the FOSFA Appeal Committee was wrong in the application of law and appealed to the British High Court, which issued an order to reject the company’s appeal.
Arbitration appeal award No. 1163 against arbitration award No. 4606a, the award results are as follows:
1. Mitsui shall pay Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) demurrage and interest in the total amount of USD 1274110.00 (USD one million two hundred seventy four thousand one hundred and ten only) (interest from October 16, 2012 to the date of payment, annual interest rate: 3.5% (3.5%) compounded quarterly).
2. Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) shall pay liquidated damages and interest in the total amount of US $7007430.00 (US $seven million seven thousand four hundred and thirty only) (interest from December 1, 2012 to the date of payment, annual interest rate: 3.5% (3.5%) compounded quarterly).
3. Both parties shall bear half of the costs, costs and expenses involved in the arbitration (GBP 136096.25 in the preliminary award stage and GBP 120267.27 in the appeal stage).
4. Both parties shall bear their own other legal expenses.
3、 Are there any other undisclosed litigation and arbitration matters
As of the disclosure date of this announcement, the company has no other major litigation and arbitration matters that should be disclosed but not disclosed. 4、 Possible impact of this arbitration on the company’s profits in the current period or after the period
For the result of appeal decision No. 1162, the company will further verify with Mitsui and confirm the litigation expenses related to this case; As the ruling No. 1163 involves many contents and the case is complex, the company’s management is communicating with overseas lawyers, legal consultants and other relevant parties to discuss whether the ruling result is reasonable and justified. The company reserves the right to appeal to the British high court.
The company has accrued estimated liabilities of RMB 43364204.43 for the possible losses of the company caused by the arbitration in 2020. The result of this appeal will have an impact on the company’s profit in 2021, and the final result shall be subject to the annual audit result.
The company will actively, legally and legally safeguard its own rights and interests, properly respond to the arbitration, and timely perform the obligation of information disclosure according to the progress of the arbitration. Please make careful decisions and pay attention to investment risks. 5、 Documents for future reference
1. High court order
2. Appeal decision
It is hereby announced.
Board of directors of Asia-Potash International Investment (Guangzhou) Co.Ltd(000893) investment (Guangzhou) Co., Ltd. January 17, 2022
