Lanhua Sci-Tech faces arbitration over joint venture agreement

Shanxi Lanhua Sci-Tech Venture (SSE:600123) has announced it is facing arbitration proceedings at the Singapore International Arbitration Centre (SIAC). The arbitration was initiated by AACI SAADEC (HK) Holdings, a partner in the Shanxi Yamei Daning Energy Co., Ltd. joint venture, with the case revolving around disagreements over the extension of the venture's operating term. AACI SAADEC is seeking confirmation that the joint venture agreement should be extended to 2030, based on a previous, unapproved agreement, and is seeking damages. Shanxi Lanhua currently holds a 41% stake in the joint venture, which is scheduled to expire on May 12, 2025. The company stated that the arbitration is in its early stages and its impact on the company's financials is currently uncertain.