General Announcement::RESULT OF PRC COURT HEARING
Issuer & Securities
CHINA ENVIRONMENT LTD.
CHINA ENVIRONMENT LTD. - SG1Y42946521 - 5OU
Date &Time of Broadcast
Announcement Sub Title
RESULT OF PRC COURT HEARING
Submitted By (Co./ Ind. Name)
Corp Affairs Mgr
Description (Please provide a detailed description of the event in the box below)
The Board of Directors (the "Board") of China Environment Ltd. (the "Company") wishes to update the shareholders on the following civil suit by Pingding Shanshi Feichi Huanbao Co. Ltd ( "Pingding" ) against the Company's wholly-owned subsidiary Anhui Dongyuan Environmental Protection Co., Ltd ( "AHDY" ) for a construction contract dispute.
This construction contract dispute arose from an engineering work amount owing of RMB992,752 in 2014. Pingding alleged that despite their repeated requests for payments, AHDY did not pay the outstanding amount.
The PRC Court has awarded judgement to the plaintiff Pingding, AHDY is liable for the RMB992,752 and shall pay within 10 days of the effective date of judgement specified by the Court. Half of the court costs for this case of RMB13,728 shall be paid by AHDY.
The amount awarded in the court judgement differs from the amount written back In the Company's audited report for FY2016. For FY2016, the amount written back under Other income in relation to Pingding amounted to RMB1,306,760. The Company will not be exposed to any loss as it will not be providing any liquidity support to AHDY for this amount.
The Company will update the shareholders as and when there are material developments.