China Zhonghua Geotechnical subsidiary sues for 86m yuan in unpaid fees

China Zhonghua Geotechnical Engineering Group Co., Ltd. announced that its wholly-owned subsidiary, Beijing Changdao Municipal Engineering Group Co., Ltd., has filed a lawsuit against Tianjin Binhai Tourism Area Public Utilities Development Co., Ltd. The case, accepted by the Tianjin Grand Notary Public Office, involves a construction contract dispute for the "Sino-Singapore Tianjin Eco-City Hanbei Road Green Corridor Landscape Engineering (Greening Construction) Project."

Beijing Changdao is seeking payment of outstanding project fees totaling 79,577,281.09 yuan and overdue payment interest of 6,469,196.92 yuan, calculated up to June 3, 2025. The total amount claimed in this lawsuit is 86,046,478.01 yuan, excluding additional unspecified amounts. The project, with an original contract value of 151,497,429 yuan, was completed and accepted on January 11, 2023, but only 32,792,909.91 yuan has been paid by the defendant.

The company also disclosed that, as of the announcement date, cumulative litigation and arbitration matters, including this new lawsuit, amount to 105.96 million yuan, representing 13.07% of the company's net assets from the latest audited period. The outcome and financial impact of this and other pending cases are currently uncertain.