The contract dispute of Bayi Steel subsidiary company

Shangjuan a wave has not calmed surging, Army Day steel once again into a contract dispute case. September 24, Army Day Steel (600581.SH) issued a notice, its wholly-owned subsidiary of Xinjiang Steel Baicheng Co., Ltd. (hereinafter referred to as "South Xinjiang Iron and Steel") for sale and purchase contract by Shaanxi Shengyuan Industry and Trade Co., Ltd. (hereinafter referred to as "China Shengyuan") prosecution,　　The court ordered the iron and steel in southern Xinjiang for the payment of Coke 26.2835 million yuan, payment of liquidated damages 735,900 yuan. The contract dispute originated in December 2012, the South Xinjiang Iron and Steel and China Shengyuan signed the "Coke Purchase and sale contract", the agreement from the Shengyuan to the southern Xinjiang Steel to provide coke. To both sides unexpectedly is, June 2013, the Coke arrives after the quality problem, in Shengyuan to this expresses disagrees.　　The two sides have failed to negotiate, and Shengyuan filed a civil lawsuit. The main body of the dispute in southern Xinjiang Steel performance, this year also was accused of dragging Army Day steel performance. At the end of August Army Day Steel released 2013.5 Annual report, semi-annual report shows its total operating income of 12 billion yuan, down 15%. At the end of 2012 Army Day Steel to 480 million yuan for the purchase of South Xinjiang Steel 100% Equity, 2013 began and table.　　But in the first half of this year south Xinjiang steel loss 138 million yuan. Today, South Xinjiang Steel main body capacity construction has not been completed. Baicheng two major projects in South Xinjiang, one is the total investment of 8.78 billion of 3 million tons of steel production capacity, the main products for the bar, wire and thin belt, the first half of this year to put into production 1.4 million tons of production capacity, the overall progress of the project completed 75%, and another 1.8 billion tons of total investment 1.2 million of the The first half of the project progress is only 48.4%.　　Some analysts pointed out that, from the first half of the development situation, there will be about 3 billion yuan in the future capital expenditure.　　The contract dispute or will bring economic losses to South Xinjiang steel, but Army Day Steel said, because the case has not yet to court, can not judge its impact. At the same time, Army Day of steel into another lawsuit case, namely Chengdu Angang International Trade Co., Ltd. (hereinafter referred to as "Angang Guomao") v. Army Day Steel and Xining Group industry and Trade Co., Ltd. (hereinafter referred to as "West Ningjun") A case was also completed recently.　　According to the Army Day Steel disclosed on the same day, the lawsuit progress revealed that Army Day Steel received xining in the enforcement of the ruling, because the West Ningjun business license has been revoked, and no property available for implementation, the hospital deducted its bank deposit of 3.616 million yuan. The dispute originated in March 2009, Angang International Trade and West Ningjun signed the contract of sale, on the basis of this contract, with Army Day Steel signed the "Tripartite Sales agreement", and in the month to Army Day of steel to remit the full payment of 48.4194 million yuan.　　But West Ningjun still owes goods 4513 tons, value 15.856 million yuan. The four-year dispute ended today, and the ruling will have an impact on the current profits of Army Day steel. Bayi Steel said that the deduction of the amount of the 3.4826 million Yuan confirmed the expected liabilities, reduce the 2012 profit. The balance of 133,400 yuan will be increased by 2013 years of operating outside expenses.