Bayi Steel wholly owned subsidiary is involved in litigation

Bayi Iron and Steel (600581) September 23 Evening announcement, recently, the company received a wholly-owned subsidiary of Xinjiang Iron and Steel Baicheng Co., Ltd. ("Southern Steel") involved in the lawsuit related documents, the plaintiff Shaanxi Shengyuan Industry and Trade Co., Ltd. ("China Shengyuan") because of the South Xinjiang steel contract dispute, A civil lawsuit was filed with the High Court of the Xinjiang Uygur Autonomous Region, amounting to 27.0194 million yuan. December 2012, South Xinjiang Iron and Steel and China Shengyuan signed the "Coke Purchase and sale contract", the agreement from the Shengyuan to provide Coke in Xinjiang steel. June 2013, due to the quality of the coke arrived after the problem, the south Xinjiang steel demand returns, in Shengyuan to this expression does not agree. The two sides negotiated no fruit, the yuan Shengyuan to the Xinjiang Uygur Autonomous Region High Court to bring civil action, the decree of the southern Xinjiang Iron and steel to pay 26.2835 million RMB, at the same time payment of liquidated damages 735,900 yuan. Bayi Steel said, currently because the case has not yet to court, temporarily unable to judge the impact. In addition, Army Day Steel disclosed, Chengdu Angang International Trade Co., Ltd. and xining June Feng Group industry and Trade Co., Ltd. contract dispute case has been terminated. Since the business license of the West Ningjun has been revoked and no property is available for execution, the Institute has deducted the company's bank deposit of 3.616 million yuan (including interest and replenishment loss, case handling fee, execution fee and other related expenses). Accordingly, the case was fully implemented. The company has confirmed its estimated liabilities for the deduction of $3.4826 million in the amount deducted from the fund and reduced its 2012 profit. The balance of 133,400 Yuan will increase the company's 2013 annual operating expenses.