The dispute over payment between Xinyuan Micro and Dalian Dehao has been settled, and 6.79 million yuan of execution funds have been recovered

After four months, the payment dispute between Xinyuanwei and Dalian Dihao Optoelectronics was finally settled, and Xinyuanwei recovered 6.7878 million yuan.

On April 8, Xinyuanwei issued an announcement stating that in the case of payment dispute between the company and Dalian Dehao, the final judgment was that Dalian Dehao should pay the company 6.3648 million yuan in payment and interest.

A few days ago, Xinyuanwei received an execution fee of 678.78 yuan from the People's Court of Dalian Economic and Technological Development Zone. At this point, the principal and interest involved in the judgment of this case have been fully recovered.

Xinyuanwei said that the company's accounts receivable from Dalian Dehao had an original book value of 7.7792 million yuan, and 1.4144 million yuan of bad debt reserves had been made, with a book value of 6.3648 million yuan. Based on the recovery of the funds, the company does not need to adjust the bad debt reserves made in the previous period, and the recovered interest and case handling fees will have a small impact on the company's current profits.

Looking back at this case, on November 12, 2018, Xinyuanwei submitted a "Civil Complaint" and "Application for Property Preservation" to the People's Court of Dalian Economic and Technological Development Zone, claiming that the company and Dalian Dehao signed two "Domestic Equipment Procurement Contracts" on June 20, 2017 and August 1, 2017, respectively. The contract numbers are HT-DL-3ES0170 and HT-DL-3ES0174, and the total contract price is RMB 14,144,000. The company has delivered four KS-S150-4ST fully automatic debonding and stripping machines to Dalian Dehao in accordance with the contract. The four equipment have been accepted by Dalian Dehao and are operating normally. According to the contract between the two parties, Dalian Dehao should pay the full contract price after the equipment is accepted. Dalian Dehao still owes RMB 7,779,200. Request: 1. The court orders Dalian Dehao to pay the overdue payment of RMB 7,779,200 and to pay the interest on the outstanding payment at the bank's loan interest rate for the same period; 2. Freeze Dalian Dehao's bank deposit of RMB 7,779,200 or seal up its other property of corresponding value in accordance with the law.

On November 19, 2018, the People's Court of Dalian Economic and Technological Development Zone issued Civil Ruling No. (2018) Liao0291 Minchu 7725 and No. (2018) Liao0291 Minchu 7725-1, freezing Dalian Dehao's bank deposits of RMB 7,779,200.

On August 26, 2019, Xinyuanwei obtained the Civil Judgment No. (2018) Liao 0291 Minchu 7725 issued by the People's Court of Dalian Economic and Technological Development Zone in relation to the Dalian Dehao case. According to the judgment, Dalian Dehao should pay the company RMB 6.3648 million in payment and interest within ten days from the date of the judgment's effectiveness. If dissatisfied with the judgment, the parties may appeal. After receiving the first-instance Civil Judgment from the People's Court of Dalian Economic and Technological Development Zone, Dalian Dehao appealed to the Intermediate People's Court of Dalian City, Liaoning Province.

Until December 16, 2019, the Dalian Intermediate People's Court of Liaoning Province issued the Civil Judgment No. (2019) Liao02 Minzhong 9495, which held that the first-instance judgment had clearly established the facts and correctly applied the law, and should be upheld. In accordance with the provisions of Article 170, Paragraph 1, Item 1 of the Procedure Law of the People's Republic of China, the court dismissed Dalian Dehao's appeal and upheld the first-instance judgment as the final judgment.

At that time, Xinyuanwei stated that if Dalian Dehao failed to pay the relevant amount to the company as required by the judgment, the company had the right to apply to the court for compulsory execution, but if Dalian Dehao entered bankruptcy liquidation procedures before the compulsory execution was completed, the property preservation measures taken by the company should be lifted and the execution procedures should be suspended. Therefore, there is still a risk that all or a large proportion of the above-mentioned funds cannot be recovered, which will cause the company to incur a large amount of bad debt losses.

To this end, Xinyuanwei has set aside 1.4144 million yuan in bad debt reserves, with a book value of 6.3648 million yuan. Xinyuanwei said that the payment and interest were all recovered this time, and the company does not need to adjust the bad debt reserves set aside in the previous period. The recovered interest and case handling fees will have a small impact on the company's current profits. The specific amount of profit impact will be subject to the results of the annual audit confirmed by the accountant.