Zhong Guo Ji Jin Bao·2025-12-13 09:53Core Viewpoint - Huaying Technology has won a final judgment in a long-standing lawsuit against its former controlling shareholders, resulting in a compensation payment of 3.029 billion yuan, which is expected to positively impact the company's operations and development [1][2]. Group 1: Lawsuit Background - The lawsuit between Huaying Technology and its former controlling shareholder, Huaying Bermuda, dates back to January 4, 2019, when the Fujian High Court accepted the case [2]. - The initial ruling required Huaying Bermuda to pay 3.029 billion yuan in performance compensation, with Da Tong Company and China Display also held jointly liable [2][3]. - After years of legal proceedings, the Supreme People's Court upheld the original ruling, dismissing the appeal from Huaying Bermuda and Da Tong Company [2]. Group 2: Financial Implications - Huaying Technology reported a revenue of 1.739 billion yuan for 2024, with a cumulative net loss of nearly 4.2 billion yuan over the past four years [1][3]. - The successful execution of the 3.029 billion yuan compensation could significantly improve Huaying Technology's financial situation [1]. - Da Tong Company, the parent company, reported revenues exceeding 8 billion yuan in the first three quarters of 2025, indicating its operational strength despite Huaying Technology's challenges [5]. Group 3: Company History and Operations - Huaying Technology, originally established as Mindong Electric (Group) Co., Ltd., underwent a major asset restructuring in 2010, acquiring stakes in four LCD module companies [3]. - The company primarily engages in the research, design, production, and sales of display panels and modules, positioning itself as a significant player in the global flat panel display manufacturing sector [5]. - The company has faced ongoing operational difficulties due to cyclical downturns in the panel industry, with a reported revenue decline of 21.03% year-on-year in the first three quarters of 2025 [5].