Zhuojin Co., Ltd. Construction Contract Dispute First Instance Judgment Orders Compensation of 1,265,800 Yuan; Both Parties Appeal

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Zhejiang Zhuojin Environmental Protection Technology Co., Ltd. (Stock Code: 688701, Stock Abbreviation: Zhuojin Co., Ltd. (Rights Protection)) announced on March 18th the progress of litigation, revealing that the first instance of a construction contract dispute with Xinjiang Shangni Biotechnology Co., Ltd. (referred to as “Shangni Biotechnology”) has been judged, and the company is required to pay Shangni Biotechnology a total of 1,265,843 yuan. Both parties are dissatisfied with the first-instance judgment and have filed appeals. The second instance has not yet opened a court session, and the first-instance judgment has not become effective.

The announcement shows that the case originated from a construction contract dispute between Zhuojin Co., Ltd. and Shangni Biotechnology. Shangni Biotechnology filed a lawsuit with the Shihezi City People’s Court in March 2025. During the first trial, the changed claims included rescinding the contract, returning the paid construction funds of 8.125 million yuan, dismantling equipment, and compensating for breach of contract and project delay penalties, totaling 11.5 million yuan.

According to the court-served Civil Judgment No. (2025) Bing 9001 Minchu 773, the first-instance judgment ordered Zhuojin Co., Ltd. to pay Shangni Biotechnology a breach of contract penalty of 1.125 million yuan, and bear case acceptance fees of 8,843 yuan and appraisal fees of 132,000 yuan, totaling 1,265,843 yuan; at the same time, other claims by Shangni Biotechnology were dismissed.

Both parties expressed dissatisfaction with the first-instance judgment. Zhuojin Co., Ltd. appealed, requesting to revoke the first-instance judgment, and to dismiss Shangni Biotechnology’s original claims, with the opposing party bearing all litigation and appraisal costs. Shangni Biotechnology also appealed, requesting to revoke the first-instance judgment and support all its claims in the first trial, with Zhuojin Co., Ltd. bearing all litigation and appraisal costs. Currently, the Intermediate People’s Court of the Eighth Division of Xinjiang Production and Construction Corps has accepted both appeals, and the case has not yet been scheduled for a hearing.

Zhuojin Co., Ltd. stated that as of the disclosure date of this announcement, the case is in the second-instance appeal stage, which has not caused significant adverse effects on the company’s daily operations, financial management, or business development. The company’s various business operations are proceeding normally and in an orderly manner. However, due to the uncertainty of the final judgment and the actual amount of compensation, the impact of this litigation on the company’s current or future profits remains uncertain. The company will fulfill its information disclosure obligations promptly based on the case’s subsequent developments.

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