Mei Ri Jing Ji Xin Wen·2025-10-22 10:02Core Viewpoint - The company Wandes has received a court summons regarding a lawsuit from Dongjiang Environmental, which seeks to auction the equity stakes of Wandes in Caofeidian Environmental Technology Co., Ltd. due to unpaid debts [1][6]. Group 1: Company Overview - Wandes holds a 16% stake in Caofeidian Environmental, while Dongjiang Environmental owns 80% [2][3]. - Caofeidian Environmental was established in 2013 and is involved in environmental sanitation, equipment manufacturing, and hazardous waste management [2]. Group 2: Financial Situation - As of March 31, 2025, Caofeidian Environmental reported total assets of 29.01 billion, total liabilities of 22.98 billion, and a net profit loss of 628.68 million for the first quarter [3]. - The company has taken out a loan of 200 million, with Dongjiang providing a guarantee for 160 million [4]. Group 3: Legal and Operational Developments - Wandes has provided a pledge guarantee for 256 million, corresponding to its 16% stake in Caofeidian Environmental, to support Dongjiang's debt obligations [4]. - Caofeidian Environmental has faced operational challenges, including lower-than-expected waste collection and declining disposal prices, leading to financial difficulties [6]. - Dongjiang has already compensated 111 million to HSBC for the loan, and has requested Wandes to fulfill its guarantee obligation of 17.78 million [6][7]. Group 4: Future Actions - Wandes is preparing for legal proceedings and plans to pursue claims against Caofeidian Environmental for any amounts paid under the guarantee [7]. - The company has made provisions for impairment on its long-term equity investment in Caofeidian Environmental [7].