Metals News
Jiangtong International Trade sues Shanghai Yingyue and others for refund of payment and liquidated damages of about 1.374 billion yuan
translation
10:27AM
Source:SMM
The content below was translated by Tencent automatically for reference.

On June 3, 2019, Jiangtong International Trade, a subsidiary of Jiangxi Copper, submitted a "civil complaint" to the Shanghai No. 1 Intermediate people's Court. On June 18, 2019, Jiangtong International Trade received legal documents such as "summons of Shanghai No. 1 Intermediate people's Court", "notice of acceptance of case of Shanghai No. 1 Intermediate people's Court" and "notice of proof of Shanghai No. 1 Intermediate people's Court" served by Shanghai No. 1 Intermediate people's Court.

The facts, reasons and claims of this action:

From June 5, 2013 to June 3, 2015, Jiangxi International Trade signed a series of sale and purchase contracts with the defendant, Shanghai Yingyue Investment Group Co., Ltd. (formerly known as Shanghai Yingyue Industrial Co., Ltd.), including the "Product purchase and Sale contract" numbered "201-010-20130605P5653" (according to the Supplementary Agreement signed between the plaintiff and the defendant on August 29, 2013. The "Product purchase and Sale contract" numbered "201-010-20130619P5872" is an integral part of the contract, hereinafter collectively referred to as the "5653 purchase and Sale contract"), and the "Industrial and Mineral products purchase contract" numbered "PA211506027" (hereinafter referred to as the "6027 purchase contract") and the related supplementary agreement (the 5653 purchase and sale contract and the 6027 purchase contract are collectively referred to as the "sale and purchase contract"), it is stipulated that the plaintiff shall purchase electrolytic copper from the defendant. The defendant delivered the goods in accordance with the contract. After the signing of the above contract of sale, the plaintiff purchased the goods according to his own plan and paid for the goods according to the contract, but the defendant failed to deliver the goods on time. On February 7, 2018, the plaintiff and the defendant confirmed the principal amount of the debt and the liquidated damages under the contract of sale and purchase, and signed the confirmation letter of the accounting data and interest on arrears between Jiangtong International Trade and Shanghai Yingyue. The total payment corresponding to the defendant's failure to deliver the goods was 1.06 billion yuan.

According to the agreement of sale and purchase, if the defendant fails to deliver the goods, the plaintiff has the right to demand the return of the payment and require the defendant to bear the overdue liquidated damages from the overdue date, calculated on the basis of the one-year bank loan benchmark interest rate of the people's Bank of China, and the liquidated damages tax shall be borne by the defendant. Therefore, the annualized interest rate of liquidated damages is 16.95%. In addition, the plaintiff also has the right to require the defendant to bear the litigation costs, property preservation guarantee fees, legal fees, travel and other related costs.

As of the date of disclosure of the announcement, the cumulative amount of litigation incurred by the company for 12 consecutive months totaled RMB 2962762856.53 yuan (including the amount involved in the case but excluding the amount of litigation disclosed).

The impact of this lawsuit on the company's current or post-period profits, etc.

In order to safeguard the interests of the majority of shareholders, Jiangtong International Trade recently adopted legal means to recover accounts receivable arising from history. Because the above litigation matters have not yet been heard, the outcome of the proceedings is still uncertain. At present, it is not possible to judge the impact on the current or post-period profits of the company.

 

 

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