Economic Herald reporter Du Hai
A lawsuit that began at the beginning of this year still plagues Shandong Sino Paper Engineering Co., Ltd. (Shandong Sino, 831338) to this day. A few days ago, Shandong Sino issued an announcement on the progress of the company's litigation involvement, together with the original committee of the dispute between It and Hebei Dr. Jin Sanitary Products Co., Ltd. (hereinafter referred to as "Dr. Jin"), and frankly said that "the impact of this litigation on the company's operation and finance is not clear.".
The lawsuit involved tens of millions of dollars in purchase money
The cause of the above dispute stems from a paper processing contract.
It is reported that on May 7, 2018, Dr. Jin signed the "Processing Contract (Customized) Contract" and related technical agreements with Shandong Sino, and Dr. Jin purchased 2 sets of the company's paper machines, with a total payment of 31 million yuan. In accordance with the contract, Dr. Jin paid the company 22.4142 million yuan from June 2018 to December 2019. After Dr. Jin believed that the paper machine manufactured by the company had serious quality defects and could not meet the quality and technical requirements stipulated in the contract, he filed a lawsuit with the Mancheng District Court of Baoding City, requesting the court to order the termination of the "Processing Contract (Customized) Contract" signed by the two parties; ordered Shandong Xinhe to return the payment of 22.4142 million yuan paid by Dr. Jin, and Dr. Jin returned the paper machine to Shandong Xinhe.
On January 10, 2020, the Mancheng District Court of Baoding City issued a (2020) Ji 0607 Min Chu No. 5 Civil Ruling, ruling to freeze 10 million yuan of deposits in Shandong Xinhe Bank or seize the equivalent value of property, and the company's total account balance of 7.1027 million yuan was seized. On July 13, 2020, the Company appealed against the above ruling, requesting the revocation of the Civil Ruling of Baoding Mancheng District Court (2020) Ji 0607 Min Chu No. 5, and requesting that the case be transferred to the Shanghai Pudong New Area Court for handling.
The Economic Herald reporter learned that as the appellant, when Shandong Xinhe raised jurisdictional objections to the trial court, it submitted two "Purchase Contracts" signed on March 23, 2019 and March 27, 2019, with Ping An Finance Company as the buyer (Party A), Shandong Xinhe as the seller (Party B), and Dr. Jin as the user (Party C). Article 13.3 of the General Clauses of the Purchase Contract, Part II of the Two Purchase Contracts stipulates that", in the event of a conflict between the relevant contracts, agreements and other legal documents signed by Party B and Party C and this contract, the parties to the contract shall prevail"; Article 9 Dispute Resolution and Application of Law 9.1 stipulates: "All disputes related to this contract shall be resolved by the parties to the contract through friendly consultation." If the negotiation cannot be resolved, the parties agree that either party shall file a lawsuit with the court having jurisdiction over the place where this contract is signed"; Article 13 Supplement 13.4 states: "This contract is signed on the 37th floor of The 2nd Phase of Shanghai International Financial Center Office Building, No. 8 Century Avenue, Pudong New Area, Shanghai". Accordingly, Shandong Xinhe stated that the company had reason to believe that the appellee had deliberately circumvented the court of jurisdiction, and his behavior violated the relevant laws and regulations, and should be punished by the appellant's behavior, and the court of first instance had no jurisdiction over the case. Therefore, he requested the Baoding Intermediate People's Court to revoke the original civil ruling in accordance with the law and transfer the case to the Shanghai Pudong New Area Court for filing and trial.
Just on the 9th of this month, Shandong Xinhe received a civil ruling issued by the Baoding Intermediate Court, and the result of the ruling showed that the Civil Ruling of the Baoding Mancheng District Court (2020) Ji 0607 Min Chu No. 5 was revoked; the case was transferred to the Shanghai Pudong New Area Court for handling. In response to the outcome of the litigation in this case, Shandong Xinhe revealed that "we will continue to maintain communication and cooperation with lawyers and follow up on the progress of the litigation." As of now, the above-mentioned cases have not been handed over, but the company's seized accounts have been unsealed. ”
In the first half of the year, the year-on-year loss was reduced by more than 2.39 million yuan
According to the 2020 semi-annual report, Shandong Sino achieved operating income of 56.804 million yuan in the current period, an increase of 42.57% year-on-year. The main reason is that the company's previous orders were assembled and tested in the current period, which met the conditions for recognizing revenue, resulting in a significant increase in operating income in the current period; the net profit in the current period was -405,400 yuan, a decrease of more than 2.39 million yuan compared with -2.796 million yuan in the same period of the previous year.
According to the semi-annual report, the company belongs to the papermaking special equipment manufacturing industry, is a papermaking special equipment and service suppliers, has an independent research and development capabilities and industry competitiveness of the professional and technical team, and has 18 patents and goods import and export qualifications. The company provides high-end household paper manufacturers with high efficiency, energy saving, environmental protection, intelligence, low consumption and other advantages of crescent tissue machine, in recent years in the country to establish a stable customer base, while the products are sold to Europe, Southeast Asia, the Middle East, Africa and other regions. Its revenue mainly comes from the direct sales of paper machines as a whole and spare parts products.
By the end of the reporting period, Zhang Lei held 72.35% of the shares of Shandong Xinhe and was the controlling shareholder. The actual controllers of the company are Zhang Lei and Wang Ying, Wang Ying holds 13.40% of the company's shares, Zhang Lei and Wang Ying are husband and wife, and the two hold a total of 85.75% of the shares.
According to his resume, Zhang Lei was born in June 1962 with a college degree. In May 1999, he founded the company as an executive director and general manager, in June 2007, he founded Sino Guangyou Co., Ltd., as an executive director and general manager, and since April 2014, he has served as the chairman and general manager of Shandong Sino.
It is worth noting that Shandong Xinhe and the "directors and supervisors" personnel recently completed the change of term.
On September 30, Shandong Sino held a meeting of the board of directors to elect Zhang Lei as the chairman of the company, zhang Lei as the general manager, Gao Limin as the deputy general manager, Xia Jirui as the deputy general manager, Wang Yuchun as the deputy general manager, and Xiaojing as the financial person in charge.