Baili Technology involved in construction project contract dispute, sued for payment of over 23.65 million yuan

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Hunan Baili Engineering Technology Co., Ltd. (Securities code: 603959, Stock abbreviation: Baili Technology (rights protection)) recently issued an announcement stating that the company has been sued by Sinopec Fifth Construction Co., Ltd. (hereinafter “Sinopec Fifth Construction”) due to a construction contract dispute. The People’s Court of Qingshan District, Wuhan City has accepted the case for filing; the case has not yet been heard. As the defendant, the company’s total amount involved is RMB 23.6584 million.

The announcement shows that Sinopec Fifth Construction’s litigation claims in this lawsuit include three parts: first, requesting Baili Technology to pay the project retention payment of RMB 16.5658 million; second, to pay the interest on the project retention payment, temporarily calculated up to January 30, 2026 as RMB 7.0927 million (calculated at twice the bank’s prevailing loan interest rate from July 30, 2021 until the actual date of full payment); third, to bear all litigation costs of this case.

It is understood that this dispute stems from the 《China-Korea Sinopec Ethylene Debottleneck Retrofit Project EPC General Contract, Package 3 Construction Contract》 signed by both parties in May 2019. Baili Technology is the contractor, while Sinopec Fifth Construction is the subcontractor. In the lawsuit, Sinopec Fifth Construction claims that after completion of the project, it submitted the settlement statement to Baili Technology on July 30, 2021, with a settlement amount of RMB 66.8734 million, but Baili Technology has not reviewed it. According to the contract, in this situation Baili Technology is deemed to have accepted the settlement amount. After deducting the amounts already paid, there remains RMB 16.5658 million in unpaid project retention payment; therefore, it holds that Baili Technology has constituted a breach of contract.

Baili Technology states that it attached great importance after receiving the notice to respond to the lawsuit. It has organized legal personnel and relevant departments to verify the situation, actively collected evidence, and prepared for responding to the lawsuit to safeguard the company’s rights and interests. Regarding the impact of this lawsuit on the company, the announcement points out that, as of now, the case has not yet been formally heard; the final impact will be subject to the subsequent court judgment or enforcement outcome. The company will continue to follow up on the progress of the matter and fulfill its information disclosure obligations in accordance with regulations.

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Responsible editor: Xiao Lang Express