About the Company and Board of Directors Guaranteeing the Truthfulness, Accuracy, and Completeness of the Information Disclosure, and No False Records, Misleading Statements, or Major Omissions.
Key Information Prompt: ● Litigation Stage: Final appellate ruling; ● Company's Party Status: Houpu Clean Energy (Group) Co., Ltd. (hereinafter referred to as "the Company")'s holding subsidiary, Houpu Clean Energy Group Engineering Technology Co., Ltd. (hereinafter referred to as "Houpu Engineering" or "the Defendant"), was the defendant in the first instance and the appellant in the second instance; ● Amount Involved: Losses of RMB 56,702,172 plus interest (interest calculated based on RMB 56,702,172 at the one-year loan market quotation interest rate (LPR) published by the National Interbank Funding Center for the same period, from June 6, 2024, to the date of actual payment) and other related fees; according to the final appellate ruling, the Company is not obligated to bear any of the aforementioned compensation liabilities; ● Impact on the Company's Profit and Loss: The Company had previously accrued corresponding provisions for estimated liabilities based on the first-instance judgment. The final appellate ruling dismissed all of the plaintiff's claims, and the Company is not obligated to bear the full compensation, interest, and related fees claimed by the first-instance plaintiff. It is expected that provisions for estimated liabilities and case acceptance fees totaling RMB 62,551,543.49 will be reversed, which will have a positive impact on the Company's current profit and loss. The final impact on the Company's profit will be subject to the data confirmed by the accountant's audit. Investors are kindly requested to pay rational attention and be aware of investment risks.
I. Basic Situation of the Litigation
In June 2024, Houpu Engineering, a subsidiary of the Company, was sued by Lingshi Tongyi Natural Gas Co., Ltd. (hereinafter referred to as "Lingshi Tongyi") in the Lingshi County People's Court of Shanxi Province due to a contract dispute. For details, please refer to the "Announcement on the Cumulative Litigation and Arbitration Cases" (Announcement No.: 2024-043) and the "2024 Annual Report" (Announcement No.: 2025-018) disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on June 24, 2024, and April 23, 2025.