JDL(SH:688057) Guan Cha Zhe Wang·2025-08-08 09:56Core Viewpoint - The lawsuit filed by Jiangxi Jindalai Environmental Protection Co., Ltd.'s subsidiary against the local government has drawn significant attention, primarily due to the dispute over overdue compensation payments related to a wastewater treatment project [1][2]. Company Overview - Jiangxi Jindalai Environmental Protection Co., Ltd. is a high-tech environmental protection enterprise established in 1993, headquartered in Nanchang, Jiangxi Province, specializing in water environment governance [3]. - The company went public on the New Third Board in 2014 and successfully listed on the Sci-Tech Innovation Board in 2020, becoming the first environmental protection company from Jiangxi Province to do so [4]. Legal Dispute Details - The lawsuit involves Jindalai's subsidiary, Wanan County Jinyuan Water Industry Co., Ltd., which is seeking approximately 40.8 million yuan (around 5.6 million USD) in overdue compensation from the Wanan County government [1][5]. - The core issue stems from a 2016 agreement where the government was to provide compensation for losses incurred by Jinyuan Water due to insufficient wastewater treatment volume [4][5]. - The government has only paid compensation for the years 2017, 2018, and part of 2019, with payments for 2019 to 2024 remaining unpaid [5]. Financial Performance - In 2024, Jindalai reported revenues of 409 million yuan (approximately 56 million USD) and a net profit of 137 million yuan (around 19 million USD), reflecting year-on-year declines of 19% and 25.3%, respectively [14]. - As of the end of 2024, the company's total accounts receivable reached 1.192 billion yuan (about 164 million USD), with over 800 million yuan (approximately 110 million USD) overdue for more than a year [14]. - The company is implementing measures to improve accounts receivable recovery, including legal actions, although the lawsuit against the government is not classified as accounts receivable [14]. Industry Context - The electronic information industry is a key sector in Wanan County, accounting for a quarter of the province's total production capacity, with PCB wastewater being a significant environmental concern [1][7]. - The local industrial park has faced scrutiny for environmental compliance, leading to the suspension of operations at Jinyuan Water due to a lack of wastewater inflow after corrective measures were implemented [8].