HUAKONG SEG(SZ:000068) Nan Fang Du Shi Bao·2025-08-07 05:35Core Viewpoint - The arbitration case between Shenzhen A-share listed company Huakong Saige and the Qitaihe Municipal Government has sparked widespread discussion, with both parties claiming their positions strongly and the case amounting to several tens of millions [1][5]. Group 1: Arbitration Case Development - On June 25, Huakong Saige and its subsidiary received the arbitration notice from the Qitaihe Arbitration Commission, marking the start of the arbitration process [1]. - A significant turning point occurred on July 23 when Huakong Saige received a counterclaim acceptance notice, escalating the conflict between the two parties [2]. - On August 6, Huakong Saige received an additional arbitration application, indicating further developments in the case [3][8]. Group 2: Contractual Dispute Details - The dispute centers around the 2019 investment contract for the lithium-ion battery anode material project, where the Qitaihe Municipal Government claims to have provided Huakong Saige with 50 million yuan in industrial support funds, but alleges that the company has not made further investments and has left the land idle [5]. - The Qitaihe Municipal Government is seeking to terminate the contract and demand the return of the 50 million yuan support funds, along with arbitration fees [5]. - In response, Huakong Saige argues that the government failed to fulfill its contractual obligations, such as constructing the factory and covering initial construction costs, which hindered project progress [5]. Group 3: Financial Implications - The total amount involved in the additional arbitration request is approximately 23.96 million yuan, which represents about 17.6% of Huakong Saige's revenue of 136 million yuan in the first quarter of 2025 [8]. - If Huakong Saige loses the arbitration, it could exert significant pressure on the company's financial performance [8]. Group 4: Company Background - Huakong Saige, a technology service provider listed since 1997, has undergone management changes, with its actual controller being Shanxi State-owned Capital Operation Co., Ltd. after a series of adjustments [8][10]. - The company has faced financial difficulties, including consecutive years of losses, but has seen some recovery since switching to the environmental protection sector in 2014 [10].