Wuxi Xuelang Environmental Technology Co Ltd

ST Xuelang announced on October 9 that the company has been sued by Anhui Zhonghuifa New Materials Co., Ltd. over a sales contract dispute, with the amount involved being 40.36 million yuan. The case has not yet gone to trial. Zhonghuifa is claiming that Xuelang Environment should pay a total of 7.2508 million yuan in liquidated damages for late delivery and late installation under four contracts, plus 33.1043 million yuan in liquidated damages for failure to deliver completion documents and failure to cooperate in acceptance inspections, with the two items totaling approximately 40.3551 million yuan. It is also seeking compensation for production shutdown losses and other actual economic losses, as well as bearing appraisal fees, legal fees, and all litigation costs. The contracts between the two parties were signed between October 2022 and March 2024, involving multiple equipment purchase and installation contracts for a 350,000-tonne-per-year light hydrocarbon cracking styrene project and a 50,000-tonne-per-year methyl isobutyl ketone project. ST Xuelang said that because the case has not yet gone to trial, it is temporarily unable to accurately estimate the impact on the company's current or future profits, and that the company will respond to the lawsuit in accordance with the law and fulfill its information disclosure obligations in a timely manner. The announcement also disclosed that the company and its controlling subsidiaries have accumulated litigation and arbitration matters that have not reached the disclosure threshold over the past twelve consecutive months, with a total amount of 2.3539 million yuan, accounting for 7.52% of the company's most recent audited net assets. In terms of performance, ST Xuelang's 2026 semi-annual report showed that the company's operating revenue was 176 million yuan, down 17.94% year on year, while the net loss attributable to the parent company was 89.67 million yuan, narrowing from a loss of 100 million yuan in the same period last year.

ST Xuelang released its interim report on August 26, 2026, showing total operating revenue of 176 million yuan and a net loss attributable to the parent of 89.67 million yuan, a reduction of 10.56 million yuan compared with the same period last year. Net cash inflow from operating activities was 16.57 million yuan, an increase of 110 million yuan year-on-year. The company's asset-liability ratio reached 99.79 percent, and its gross margin was 0.84 percent, rising for two consecutive quarters. Diluted earnings per share were negative 0.27 yuan, an improvement of 0.03 yuan year-on-year. The number of shareholders was 10,700, and the top ten shareholders held 45.17 percent of the total share capital.

ST Xuelang disclosed that its financial loan contract dispute with Bank of Suzhou Wuxi Branch has entered the enforcement phase, with an enforcement target of approximately 49.71 million yuan. The court has cumulatively deducted approximately 28.77 million yuan from the company's bank accounts. The second-instance judgment has taken effect, and the company is also in the pre-restructuring filing stage, but there is uncertainty as to whether it can enter the formal restructuring process. The company stated that it will conduct accounting treatment based on subsequent enforcement developments in accordance with accounting standards, and the specific impact will be subject to the annual audit report.