Suzhou Cheersson Precision Metal Fo

The equity transfer dispute between Ruima Precision and the former shareholders of Guangzhou Xinzheng Auto Parts Co., Ltd. has escalated further. The former shareholders, surnamed Ma, have filed a counterclaim with the Huqiu District People's Court in Suzhou, seeking an order for the company to pay the remaining equity transfer price and overdue penalties totaling provisionally 31.5482 million yuan. Previously, on July 13, Ruima Precision announced it had sued the two defendants for breaching non-compete commitments, claiming total penalties of 77.9137 million yuan. The litigation stems from Ruima Precision's two-round acquisition of Xinzheng Parts. On May 16, 2022, the company acquired a 36.482% stake in Xinzheng Parts for 98.5 million yuan and made an additional capital injection of 80 million yuan. In a commitment letter, the two defendants promised not to engage in any business competing with Xinzheng Parts for ten years from the transaction closing date. On April 10, 2025, the parties signed another agreement under which the company would acquire the remaining 49% stake in Xinzheng Parts for approximately 197 million yuan. Ruima Precision alleges that during the non-compete period, the two defendants actually controlled and operated a company in Guangzhou through shareholding by their children, taking over Xinzheng Parts' core ECU controller programming business and producing identical products sold directly to customers. On this basis, it seeks an order for the two defendants to jointly pay 38.414935 million yuan in penalties for breaching the non-compete commitments under the 2022 agreement and 39.4988 million yuan for breaching those under the 2025 agreement. The counterclaim requests payment of the remaining equity transfer price totaling approximately 30.81 million yuan, overdue payment penalties provisionally totaling about 539,000 yuan, and legal fee losses of 200,000 yuan, with the total amount in dispute provisionally about 31.5482 million yuan. As of the announcement date, the above lawsuits have not yet been heard, and Ruima Precision said the outcome remains uncertain, as does the impact on the company's current and future profits.

Ruima Precision released its 2026 interim report on August 27. The company's first-half operating revenue was 979 million yuan, up 4.6 percent year on year, but net profit attributable to the parent company showed a loss of 16.15 million yuan, down 187.8 percent year on year. Second-quarter operating revenue was 616 million yuan, up 26.4 percent year on year, with a net loss attributable to the parent company of 2.35 million yuan. As of the end of the second quarter, the company's total assets were 2.816 billion yuan, down 8.7 percent from the end of the previous year, and net assets attributable to the parent company were 1.435 billion yuan, down 1.2 percent. The company said that during the reporting period there were no major changes in its operating conditions or main businesses, and it continued to focus on the automotive, new energy, and communications industries, advancing projects such as seat system integration and automotive air suspension systems.