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)
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 Xinjiang Dongfang Xiwang Youshe Jinshu Co. Ltd ( "XJDF" ) against the Company s wholly-owned subsidiary Fujian Dongyuan Environmental Protection Co., Ltd ( "FJDY" ) for a construction contract dispute.
This construction contract dispute arose from an engineering contract signed in 2012. XJDF alleged that the dust collectors sold by FJDY did not meet XJDF quality control standards and this quality control issue was not rectified in 2014.
The PRC Court has awarded judgement to the plaintiff XJDF. FJDY is liable for the RMB1,503,000 damages for breach of contract and shall pay within 10 days of the effective date of judgement specified by the Court. Court costs for this case of RMB76,592 shall be paid by FJDY.
The Company will not be exposed to any loss as it will not be providing any liquidity support to FJDY for this amount.
The Company will update the shareholders as and when there are material developments.