XCEP(SH:600505) Shang Hai Zheng Quan Bao·2026-01-30 21:49Core Viewpoint - The announcement details an arbitration case involving Sichuan Xichang Electric Power Co., Ltd.'s subsidiary, Muli County Guzeng Hydropower Development Co., Ltd., which is currently in the arbitration phase with a claim amount of approximately 457 million yuan [2][3][7]. Group 1: Arbitration Case Details - The arbitration has been accepted by the Liangshan Arbitration Committee, and a tribunal has not yet been formed [5]. - The applicant, China Water Resources and Hydropower Seventh Engineering Bureau Co., Ltd., is seeking confirmation of contract terms and additional payments related to construction disputes [2][3]. - The total claim amount of 457,016,681.21 yuan includes various components such as risk fees and VAT adjustments [3][4]. Group 2: Financial Impact on the Company - The arbitration is related to construction cost confirmations and is not expected to impact the company's profits for the year 2025, although future impacts remain uncertain [2][8]. - The company disputes the claim amount and is actively organizing legal analysis to address the situation [8]. - Even in a worst-case scenario, any financial obligations resulting from the arbitration would be considered part of the normal construction costs and would not constitute a one-time loss [8]. Group 3: Company Background - Muli County Guzeng Hydropower Development Co., Ltd. was established in 2011 with a registered capital of 432.18 million yuan and is primarily owned by Sichuan Xichang Electric Power Co., Ltd. [6]. - The Guzeng Hydropower Station has a total installed capacity of 172,000 kilowatts and is part of a larger hydropower development plan [6][7]. - The construction contract for the hydropower station was awarded to a consortium led by China Water Resources and Hydropower Seventh Engineering Bureau Co., Ltd. [6][7].