Ultrapower subsidiary faces re-trial applications in 50 contract disputes

Beijing Ultrapower Software's wholly-owned subsidiary, Beijing Ultrapower System Integration Co., Ltd., is facing re-trial applications in 50 litigation cases. The disputes, stemming from contract disagreements with Datang Semiconductor Design Co., Ltd., Datang Microelectronics Technology Co., Ltd., and Beijing Shilintong Technology Development Co., Ltd., previously resulted in first-instance judgments totaling approximately CNY 379,531,200.00. Subsequent appeals were dismissed.

Datang Semiconductor and Datang Microelectronics had previously paid CNY 245,326,155.92 to Ultrapower System Integration, covering 50% of the principal, 50% of the interest, and other related fees for the return of unrecoverable payments from Shilintong in the corresponding cases. However, Datang Semiconductor and Datang Microelectronics are now applying to the Beijing Higher People's Court for re-trial, seeking to overturn the first and second-instance judgments and reject Ultrapower System Integration's claims for repayment of loans and interest.

The company currently has other outstanding minor litigation matters, with a cumulative involved amount of CNY 26,024,200.00. Cases where the company is a defendant total CNY 13,161,800.00. The re-trial applications are currently under review by the Beijing Higher People's Court, and the potential impact on Ultrapower's current or future profits remains uncertain, pending the court's decision on whether the applications meet the re-trial conditions.