Disputes continue, and Zebao’s parent company is sued again!

In addition to the litigation matters that have been disclosed, the cumulative amount of litigation and arbitration matters that have occurred in the company and its subsidiaries for 12 consecutive months is approximately RMB 17.2292 million, accounting for 11.22% of the company's latest audited net assets.

The more than 10 million yuan involved in the case mainly involves two lawsuits, both of which are sales contract disputes. Both are currently under trial, but the amounts involved are different.

One case was a sales contract dispute between Jiangsu Daowei Outdoor Products Co., Ltd. and Xinghui Co., Ltd., involving a sum of RMB 15.1396 million. Another case was a sales contract dispute between Guangzhou Huachujian Biotechnology Co., Ltd. and Shenzhen Linyoutong Technology Development Co., Ltd., a subsidiary of Xinghui Co., Ltd., involving a sum of RMB 1.9441 million.

Looking at the situation of Zebao's parent company in recent years, it can be said that there have been constant lawsuits.

Several subsidiaries of Xinghui Holdings were sued by many companies over compensation for goods, liquidated damages and other expenses to suppliers. The case lasted for a long time and ended with Xinghui losing the case and being ordered to pay suppliers more than 50 million yuan.

To look at it in detail, in the contract dispute between Yafu Electronics and Xinghui Holdings' subsidiaries Linyoutong and Danya Technology, the initial arbitration fee requested by Yafu Electronics was 25.69 million yuan. However, in the report disclosed by Xinghui Holdings, the amount of compensation paid by Xinghui Holdings' subsidiaries to Yafu Electronics was 23.0394 million yuan.

Cooper Electronics had a sales contract dispute with Xinghui Company, Linyoutong, Sun Valley, and Zebao. The amount involved in the sales contract dispute between the two parties was as high as 12.94 million yuan, but in the end Cooper only received part of the payment for the goods and the corresponding loss of funds, litigation costs, etc., which amounted to 5.8021 million yuan .

Judging from many actual cases, contract disputes between big sellers are a long-term tug-of-war. After years of litigation, the amount of compensation will be reduced in the end. Especially for the loss of finished products, semi-finished products and materials in inventory, the final amount of compensation is even less.

Looking back at the dispute between Zebao and its parent company Xinghui Shares, it is still going on. Previously, a seller broke the news that 30 Zebao employees were laid off and on standby. The companies involved in these people include several subsidiaries of Xinghui Shares, such as Shenzhen Linyoutong Technology Development Co., Ltd., Shenzhen Danya Technology Co., Ltd., Shenzhen Aislon Technology Co., Ltd. and Changsha Zebao Technology Co., Ltd.

It's a tangled mess that can't be sorted out, and the mess between big sellers has always been there.

Xinghui Shares

Zebao

Sales Disputes