Trainee reporter Niu Siruo.
On January 8, Yongtai Technology announced that it had received a civil complaint, which was a dispute over a sales contract with Guoxuan Hi-Tech. Feidong Guoxuan, a subsidiary of Guoxuan Hi-Tech, sued Yongtai Technology, demanding the return of the performance bond and the loss of occupied funds totaling 20.3 billion yuan.
Previously, on December 18, 2023, Yongtai Technology issued an announcement saying that Yongtai Technology sued Guoxuan Hi-Tech and its affiliates for breach of contract and demanded compensation of 31.1 billion yuan.
Which party is in default?
On January 8, Yongtai Technology announced that it had recently received a summons and a "Civil Complaint" and other litigation materials served by the Intermediate People's Court of Hefei City, Anhui Province. Feidong Guoxuan, a subsidiary of Guoxuan Hi-Tech, sued Yongtai Technology, demanding that Yongtai Technology return the performance bond and the loss of occupied funds, a total of 20.3 billion yuan.
Previously, Yongtai Technology had issued an announcement on the same case, and on December 18, 2023, Yongtai Technology said that it submitted a civil complaint to the Taizhou Intermediate People's Court on the contract dispute with Feidong Guoxuan New Materials, a subsidiary of Guoxuan Hi-Tech, and Hefei Qianrui Technology, with the company as the plaintiff, and the amount involved was 31.1 billion yuan.
This sales contract dispute case needs to be traced back to the beginning of 2022, when Feidong Guoxuan signed the "Material Procurement Agreement" with Yongtai Technology on the condition of high product demand and long-term cooperation, which agreed on the minimum monthly purchase amount of lithium hexafluorophosphate and vinylene carbonate purchased by Feidong Guoxuan from Yongtai Technology, and agreed on the procurement**, contract period, etc.
At the same time, the two parties agreed that if the minimum purchase quantity is not completed, resulting in the loss of Yongtai Technology, Yongtai Technology has the right to file a claim against Feidong Guoxuan, and the specific claim amount shall be negotiated by both parties. In addition, the two parties agreed that Feidong Guoxuan should pay the payment in a timely manner, and if the payment is overdue, Yongtai Technology has the right to refuse to deliver the goods, and Feidong Guoxuan should pay the corresponding interest.
After the two parties signed the purchase and sale contract, Feidong Guoxuan paid a deposit of 200 million yuan to Yongtai Technology. In addition, in June 2022, Yongtai Technology agreed that Feidong Guoxuan would continue to perform the contract by entrusting Hefei Qianrui to procure.
Then, in April and December 2023, Feidong Guoxuan entrusted a lawyer to send letters to Yongtai Technology twice to request Yongtai Technology to return the prepaid deposit.
However, Yongtai Technology believes that Feidong Guoxuan deliberately denied and concealed some facts when it knew that the contract was still being performed, in a vain attempt to claim back the advance deposit by means of breach of contract.
Yongtai Technology filed a lawsuit against this, saying that Feidong Guoxuan and Qianrui Technology had a total amount of 22.9 billion yuan for the goods, and at the same time compensate for the loss of 28.2 billion yuan, after deducting the deposit of 200 million yuan, it is still necessary to pay 31.1 billion yuan.
However, there is a dispute between the two parties as to whether the payment is settled. According to the announcement, Guoxuan Hi-Tech said that after the agreement was signed, the payment of both parties had been settled, and the prepaid deposit had not been deducted. At the same time, the two parties agreed that the contract period is June 30, 2023, which has been overdue for 6 months, but Yongtai Technology has not yet returned the prepaid deposit.
Due to lithium hexafluorophosphate ** diving "stop loss".
As for the reason why the two listed companies Yongtai Technology and Guoxuan Hi-Tech sued each other, there are rumors in the industry that it is because of the fluctuation of lithium prices that they were forced to "stop loss", but this rumor has not been confirmed by both parties.
Previously, benefiting from the rapid development of the field of new energy vehicles, the lithium salt lithium hexafluorophosphate market was hot. Since 2021, lithium hexafluorophosphate** has risen to nearly 600,000 tons, and it will remain high in 2022, but lithium hexafluorophosphate** will dive in 2023.
It is worth noting that the "Material Purchase Agreement" signed by the two parties at the beginning of 2022 is at a high level of lithium hexafluorophosphate**. According to the announcement, the two parties agreed that the minimum purchase amount of lithium hexafluorophosphate should be 4,500 tons, and the amount involved in this agreement is as high as 25400 million yuan.
However, shortly after the agreement was signed, the lithium hexafluorophosphate market** began to decline in the second quarter of 2022. According to Mysteel data, on January 2, 2024, lithium hexafluorophosphate** was reported at 67,000 yuan, compared with 600,000 tons at the highest point, the range of lithium hexafluorophosphate was 889%。
With the decline of lithium hexafluorophosphate**, Yongtai Technology's performance is under pressure.
According to Yongtai Technology's third quarter report of 2023, the net profit attributable to shareholders of listed companies is -09.9 billion yuan, a year-on-year decrease of 11801%。The main reason is that the sales revenue of lithium battery materials business and ** business has declined a lot. The overall gross margin for the first three quarters of 2023 was 1530%, showing a downward trend, mainly due to fierce market competition, lithium battery material product sales ** year-on-year decline is more.
Both lawsuits have been filed and have not yet been heard.
Edit: Captain's Review: Muyu.