Datang Telecom faces ¥120m arbitration claim over joint venture dispute

Datang Telecom Technology Co., Ltd. announced on October 15, 2025, that it received an arbitration request from the International Chamber of Commerce International Court of Arbitration on October 11, 2025. The claim, totaling approximately ¥120m, lists the company as a respondent alongside its former subsidiary, Leadcore Technology Co., Ltd., and several other parties. The dispute originates from a 2017 joint venture, Linxens Technology Co., Ltd., involving Leadcore Technology and Qualcomm (China) Investment Co., Ltd. The arbitration alleges Leadcore Technology's failure to fulfill capital contributions and related liabilities.

Qualcomm (China) is seeking compensation for losses incurred in litigation related to Linxens Technology's third-party creditor debts, amounting to approximately ¥83.5m, and repayment of a loan provided to Linxens Technology, including principal of approximately ¥27.18m, interest, and overdue penalties. Datang Telecom maintains that any responsibility for these claims should lie with Leadcore Technology and its controlling shareholders due to a 2023 major asset restructuring agreement, which transferred all rights, obligations, and risks of Leadcore Technology's 100% equity to its controlling shareholders.

The company believes the arbitration will not materially impact its financial results, as it considers the claims against itself for the loan to Linxens Technology to be without legal basis. Datang Telecom has also disclosed other ongoing litigations and arbitrations, with a total cumulative amount of ¥2,419,539.86 over the past 12 months.