Component quality problems, Trina Solar was claimed nearly 1 billion by Japanese companies

Trina Solar announced on October 14 that the company had recently received the International Chamber of Commerce (ICC). Hereinafter referred to as "ICC") on the arbitration application filed by the plaintiff SHARP CORPORATION (hereinafter referred to as "SHARP") and other relevant materials. Sharp filed an arbitration with the ICC

over the quality of Trina Solar components and claimed $132.2 million in damages.

According to Trina Solar, in August 2013, the two sides signed a 936 MW module supply contract, and the two sides have completed the delivery and payment of modules by 2016.

Recently, Sharp filed an arbitration with ICC on the grounds of poor insulation of module backplane, claiming that although the problem was caused by the backplane problem provided by a third-party supplier, Trina Solar should still be responsible for the behavior of the backplane supplier, so it filed an arbitration.

In response, Sharp filed the following arbitration requests:

1. Order the company to pay compensation to the plaintiff (Sharp), which currently claims a total of $132.2 million (about RMB 967 million);

2. Request the arbitration tribunal to confirm that the poor insulation of the backplane of the batch of components belongs to a series of problems under the contract;

3. Request the arbitration tribunal to confirm that the company shall be fully responsible for the replacement cost and the loss, damage, cost or expense caused by the poor insulation problem in the future, with the upper limit of 400% of the amount of the component in question;

4. 20,000 components are stored in Japan every month for the plaintiff's (Sharp) after-sales replacement;

5. Interest, attorney's fees, arbitration costs and other remedies approved by the arbitrator.

In this regard, Trina Solar said that Sharp's arbitration application described the incident in many ways inconsistent with the facts. The company will actively respond to the lawsuit and take relevant legal measures to effectively safeguard the interests of the company and all shareholders.

Just five days before the disclosure of the lawsuit, Trina Solar issued a performance forecast for the first three quarters. It is estimated that the net profit attributable to the parent company in the first three quarters of 2023 will be 4.563 billion to 5.577 billion. If it loses the lawsuit, the amount of compensation may exceed 1/5 of the company's net profit in the first three quarters.

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