The subsidiary of Guotong was sued by CCCC Tunnel! The court has accepted it!

On June 22, Xinjiang Guotong Pipeline issued a major litigation announcement.

The announcement shows that Anhui Sinoma Liyuan Investment Co., Ltd. (Hereinafter referred to as "Sinoma Liyuan"), a holding subsidiary of Xinjiang Guotong Pipeline Co., Ltd. (Hereinafter referred to as "the Company"), has recently received a civil indictment, a notice of response and a summons [ (2023) Anhui 08 Minchu 49] from the Anqing Intermediate People's Court of Anhui Province. In May

2017, the Plaintiff – CCCC Tunnel Engineering Co., Ltd. and the Defendant – Sinoma Liyuan signed the General Contract for Construction of Comprehensive Pipe Gallery of Tongan Road and Shengtang Road Extension Section in Tongcheng City, with the Plaintiff as the Contractor and the Defendant as the Employer.

Zhongjiao Tunnel Engineering Bureau Co., Ltd. considers that during the construction process, there are breaches of contract such as delay in providing construction site and delay in payment of project funds, and requests that the defendant be ordered to pay the remaining project funds and inter est to Zhongjiao Tunnel Engineering Bureau Co., Ltd. Should be calculated to the date of actual payment), the cost of material adjustment (specifically based on judicial appraisal), compensation for losses (specifically based on judicial appraisal), the total amount is temporarily 10238 63000 yuan, at the same time, it is required to confirm that China Jiaotong Tunnel Engineering Bureau Co., Ltd. The defendant shall bear the litigation fee, appraisal fee, property preservation fee and guarantee fee of the case.

At present, the court has filed a case for acceptance and has not yet held a hearing.

Guotong shares said that the case has not yet been heard, and it is impossible to judge the impact on the company's current or future profits. Except for this disclosure of litigation, the company (including its holding subsidiaries) has no other litigation and arbitration matters that should be disclosed but have not been disclosed.

In 2022, Guotong achieved a revenue of RMB 620 million, a year-on-year decrease of 46.11%; a net profit of RMB -106 million, a year-on-year decrease of 819.63%; and a net profit attributable to shareholders of listed companies of RMB -103 million, a year-on-year decrease of 1293.98%. The first quarter report of

2023 shows that the company's main business income is 38.7069 million yuan, up 77.96% year-on-year; the net profit attributable to the parent company is -52.7842 million yuan, down 37.14% year-on-year. The main business

of Guotong Co., Ltd. is the manufacture, transportation and related technical development and consulting services of cement products such as prestressed concrete cylinder pipe (PCCP) and reinforced concrete segment (shield segment). The main product is PCCP.