Xiangtan Electric faces lawsuit over subsidiary's debt

Xiangtan Electric Manufacturing (SSE:600416) announced that its wholly-owned subsidiary, Xiangtan International Trading, and its subsidiary, Xiangtan (Shanghai) International Trading, have been named as defendants in a lawsuit filed in Shenzhen. The plaintiff, Shenzhen Qianhai Zhongmao Supply Chain Management, alleges a breach of contract related to a 2019 pulp purchase agreement, seeking RMB 31.93 million ($4.45 million). The lawsuit claims Xiangtan (Shanghai) International Trading failed to deliver goods after receiving payment, and seeks repayment of the outstanding amount, plus interest and associated legal costs. The court has accepted the case and is in the pre-trial mediation stage. Xiangtan Electric acknowledges the proceedings and states it is currently unable to determine the overall financial impact on the company.