Jin Guan Co., Ltd. is sued by Guizhou Baolong, with the case amount exceeding 41.27 million yuan

Jilin Jinguang Electric Co., Ltd. (Stock abbreviation: Jinguang Co., Ltd., stock code: 300510) announced on March 20th that the company recently received a subpoena from the People’s Court of Weining Yi, Hui, and Miao Autonomous County, and the plaintiff Guizhou Baolong New Energy Development Co., Ltd. filed a civil complaint. The case involves a contract dispute over the Guizhou Weining Baolong Wind Power Plant project, with a total claimed amount of RMB 41.276526 million. The case has been filed but has not yet gone to court.

The announcement states that Jinguang Co., Ltd. previously formed a joint venture with Suhua Construction Group Co., Ltd. and China Power Construction Group Guiyang Survey and Design Institute Co., Ltd. to win the EPC general contracting project for Guizhou Baolong New Energy Development Co., Ltd.'s Guizhou Weining Baolong (20+30+30) MW Wind Power Plant project, with a bid total of RMB 550 million. This matter was disclosed on June 5, 2023. In April 2024, Jinguang Co., Ltd. sent a letter to Guizhou Baolong to terminate the EPC contract for the project, which was announced on April 22, 2024.

According to the civil complaint, the plaintiff Guizhou Baolong New Energy Development Co., Ltd. made several claims, including confirming that the EPC contract involved was terminated on January 11, 2024. The plaintiff requests that Jinguang Co., Ltd. pay an additional RMB 10 million for wind turbine procurement costs, RMB 23.5175 million for increased financing costs, RMB 373,626 for guarantee letter fees, RMB 7.3854 million for breach of contract penalties, and bear the litigation and preservation costs.

In the complaint, Guizhou Baolong states that Jinguang Co., Ltd., as the lead of the joint venture, failed to timely perform obligations such as advancing project financing, submitting performance guarantees, signing wind turbine procurement contracts, and ensuring project schedule progress, constituting material breach. It is noted that Jinguang Co., Ltd. delayed securing project funds and did not promptly sign contracts after issuing the bid notification to wind turbine suppliers, resulting in delays in turbine delivery and project schedule. The plaintiff sent a “Contract Termination Notice” on January 9, 2024, and believes the contract was terminated when the defendant received the notice on January 11, 2024. The plaintiff claims that the increased costs due to rising wind turbine prices, additional financing costs, and guarantee fees after the contract termination should be borne by Jinguang Co., Ltd., and they also demand breach penalties as per the contract.

Jinguang Co., Ltd. states that the case is expected to be heard on April 13, 2026, but has not yet gone to court. The outcome of the lawsuit is uncertain, and the final impact will depend on the court’s effective judgment. The company will actively respond and disclose information in a timely manner according to the progress of the case.

As of the date of this announcement, the company and its controlling subsidiaries have no other major lawsuits or arbitration matters that need to be disclosed but have not been disclosed.

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Editor: Xiao Lang Kuai Bao