SLSVC(SH:600123) Mei Ri Jing Ji Xin Wen·2025-05-21 15:48Core Viewpoint - The company LanHua KeChuang (600123) is facing operational challenges due to the suspension of production at its associate company Shanxi Yamei Danning Energy Co., Ltd. (Yamei Danning) following the expiration of its business license and production capacity announcement on May 12 [1][2] Group 1: Company Operations - Yamei Danning has ceased production, and the specific timeline for resumption is currently undetermined [1] - The company is in discussions with its partners regarding arrangements following the expiration of the cooperation agreement, which is set to end on May 12, 2025 [1] - The registered capital of Yamei Danning is $53.6 million, with LanHua KeChuang holding a 41% stake [1] Group 2: Arbitration and Legal Matters - Yamei Hong Kong has filed for arbitration with the Singapore International Arbitration Centre (SIAC) to extend the cooperation period and seek economic compensation [2][3] - The arbitration request includes confirmation that the cooperation contract's term has been extended to 30 years and demands compliance from LanHua KeChuang and JinCheng Coal Transport [3] Group 3: Financial Performance - In 2024, LanHua KeChuang reported revenues of 11.697 billion yuan, a decrease of 11.95% year-on-year, and a net profit of 718 million yuan, down 65.79% [4] - The company produced 13.8554 million tons of coal in 2024, a slight increase of 0.38%, but sales decreased by 3.22% [4] - Yamei Danning contributed 1.822 billion yuan in revenue and 511 million yuan in net profit to LanHua KeChuang, with a dividend payout of 820 million yuan [5]