Securities Code: 300145 Securities Abbreviation: Nanfang Pump Industry Announcement No.: 2026-005
Nanfang Pump Industry Co., Ltd. Announcement on the Progress of the Implementation of the "Execution Settlement Agreement"
The Company and the Board of Directors guarantee the authenticity, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions.
I. Situation of Disputes Regarding Performance Compensation Between the Company and Performance Obligors
Nanfang Pump Industry Co., Ltd. (hereinafter referred to as the "Company" or "Nanfang Pump Industry") acquired 100% of the equity of Zhejiang Jintai Lai Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Jintai Lai") in December 2017 and signed the "Profit Compensation Agreement" with Dai Yunhu, Song Zhidong, and Lu Xiaoying (hereinafter referred to as the "Performance Obligors" or "Performance Compensation Obligors"). As Jintai Lai failed to achieve its promised performance in 2020, in accordance with the relevant clauses of the "Profit Compensation Agreement," the Company progressively submitted arbitration applications for performance compensation and asset impairment to the Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center) (hereinafter referred to as the "Shanghai International Arbitration Commission") in 2021. In November 2021, the Performance Obligors submitted a counterclaim to the Shanghai International Arbitration Commission.
In December 2022 and February 2023, the Shanghai International Arbitration Commission issued arbitral awards for the aforementioned cases separately. According to the "Arbitral Award," the Performance Obligors should pay the Company performance compensation of RMB 121,552,613 and partial arbitration fees of RMB 821,961.60.