Jiangsu Zhongli subsidiary wins solar litigation, awarded CNY 75m

Talesun Solar, a wholly-owned subsidiary of Jiangsu Zhongli Group Co., Ltd., recently received a first-instance civil judgment from the Suzhou Intermediate People's Court regarding a construction contract dispute. The court ruled in favor of Talesun Solar, ordering Hengshou Zhonghui Solar Power Generation Co., Ltd. and Changshu Hongfeng Solar Power Station Development Co., Ltd. to pay Talesun Solar a total of CNY 75,342,510.44 for engineering fees, outstanding payments, and liquidated damages.

Additionally, the judgment requires the defendants to pay overdue payment liquidated damages calculated on a principal of CNY 7,500,000 from March 19, 2021, until the actual settlement date, and overdue payment interest losses calculated on a principal of CNY 5,727,700.44 from December 10, 2024, until the actual settlement date. Changshu Hongfeng Solar Power Station Development Co., Ltd. is held jointly and severally liable for the first defendant's obligations.

While this first-instance judgment is favorable to Talesun Solar, the final outcome remains uncertain as parties have the right to appeal. The company stated that the impact on its current or future profits cannot yet be definitively determined. The total case acceptance fee of CNY 448,422 is to be borne by Talesun Solar (CNY 89,684) and Hengshou Zhonghui Solar Power Generation Co., Ltd. (CNY 358,738).