Sinoma International sues Guangxi Jinxiang for unpaid engineering fees

China Sinoma International Engineering Co., Ltd. (Sinoma International) has filed a civil lawsuit against Guangxi Jinxiang Cement Co., Ltd. (Guangxi Jinxiang) in the Laibin Intermediate People's Court for construction contract disputes. The lawsuit, filed on October 16, 2025, seeks payment of 854,633,588.30 yuan in outstanding engineering principal, plus interest, overdue interest, and capital occupation losses totaling 49,947,288.31 yuan, bringing the total claim to 904,580,876.61 yuan. Sinoma International also seeks priority repayment rights over the project's valuation or auction proceeds.

The dispute stems from an EPC contract signed on May 9, 2021, for a cement production line, with a final settlement price of 1,959,518,834 yuan confirmed on August 20, 2024. Sinoma International states that Guangxi Jinxiang has not yet paid the outstanding amount. The court has formally accepted the case, and Sinoma International has applied for property preservation.

In a related case, Sinoma International also filed a lawsuit on July 10, 2025, against Hangzhou Xiaoshan Building Materials Group Co., Ltd., Liu Jinzhen, and Henan Jinrong Cement Co., Ltd. This lawsuit concerns the guarantee liabilities for 774.76 million yuan of the unpaid engineering fees and interest, based on an equity pledge contract. The company's production and operations remain normal, but the impact on current or future period profits is uncertain due to the ongoing litigation.