China Chemical Engineering achieves full nylon production amid subsidiary lawsuit

China National Chemical Engineering Co., Ltd. announced that its non-public offering project, the nylon new materials project, implemented by its third-level subsidiary Tianchen Qixiang New Materials Co., Ltd., has achieved full production. Following a 72-hour full-load performance test, the adiponitrile unit's key technical and economic indicators met or exceeded design values, ensuring stable product quality and efficient operation. This full production is expected to enhance efficiency, reduce costs, and strengthen market competitiveness.

However, the company's subsidiary, China Chemical Engineering Saisding Ningbo Engineering Co., Ltd., recently received a summons from the Suzhou Intermediate People's Court in Jiangsu Province. Saisding Ningbo is listed as a co-defendant in a securities false representation liability dispute lawsuit filed by investors against Kexinde Composite Materials Group Co., Ltd.

The lawsuit seeks a total of 4,139,231,467.68 yuan for investment losses from Kexinde, with other defendants, including Saisding Ningbo, facing joint and several liability. Additionally, the plaintiffs are seeking 3,000,000 yuan for various fees. Saisding Ningbo's preliminary assessment indicates that it did not knowingly assist in Kexinde's financial fraud and is not the primary responsible party, suggesting the lawsuit will not materially impact the company's current or future profits.