Houpu Clean Energy (SZ:300471) Xin Lang Cai Jing·2025-11-11 13:01Core Viewpoint - The company, Houp Clean Energy Group Co., Ltd., is currently involved in a legal dispute regarding a contract with Ling Shi County Tong Yi Natural Gas Co., Ltd., which has resulted in a first-instance court ruling requiring the company to pay approximately 56.70 million yuan in damages and to dismantle certain facilities [1][2][3]. Group 1: Legal Proceedings - The lawsuit originated from a contract dispute between Houp Engineering and Ling Shi Tong Yi, leading to a court case initiated in June 2024 [2]. - The first-instance ruling mandated Houp Engineering to pay 56.70 million yuan in damages and to restore the project site within specified timeframes [2][3]. - Houp Engineering has filed an appeal against the first-instance ruling, seeking to overturn the decision and dismiss all claims from Ling Shi Tong Yi [3]. Group 2: Financial Implications - The company has taken a cautious approach by adjusting its accounting practices following the first-instance ruling, with the final impact on profits to be determined by the outcome of the appeal and subsequent audits [3]. - According to the acquisition agreement, any losses incurred due to disputes arising from projects before the transfer of control will be the responsibility of the original shareholders, who may face claims for compensation from the company [3]. Group 3: Operational Status - Despite the ongoing litigation, the company asserts that its production and operations remain normal and that the lawsuit will not have a significant impact on its business activities [3].