Bayi iron and steel, a wholly owned subsidiary involved in litigation

Bayi steel late September 23 announcement,200mm diameter mild steel pipe recently, the company received a wholly owned subsidiary of xinjiang southern xinjiang eight steel steel in baicheng co., LTD. (hereinafter referred to as "southern xinjiang steel") relating to the litigation documents, the plaintiff is suggested in shaanxi industry &trade co., LTD. (hereinafter referred to as "suggested") with the southern xinjiang steel business contract dispute, to the xinjiang uygur autonomous region senior court to lodge a civil action, the amount of 27.0194 million yuan.

In December 2012, in the southern steel and sign the coke procurement contract is suggested,astm a234 CS seamless elbow R=1.5D is suggested to provide the nanjiang steel coke agreed by. In June 2013, due to the coke quality problems after the arrival of the goods, ask for a refund, southern xinjiang steel is suggested in the said don't agree with this. Both sides talks things over, to mention to the high court in xinjiang uygur autonomous region is suggested in the civil lawsuit, coke payment $26.2835 million payment request to judge the nanjiang steel, at the same time pay late payment penalty due to breach of contract is 735900 yuan. Bayi iron and steel, according to the current because the case has not been in session, temporarily unable to determine.

In addition, bayi iron and steel,carbon steel spiral welded tube anshan iron and steel international trade co., LTD., chengdu v. company and xining jung feng group, industry and trade co., LTD., contract dispute case has come to an end. For xining handsome peak business license has been revoked, and no property available for execution,JIS 5K Plate flanges the hospital deduct the company bank deposit 3.616 million yuan (including the loss of interest and replenishment, court costs, execution fee and other related fees). On this basis, the case all completed. Company has to confirm the estimated debts the deduct the payment of 3.4826 million yuan, 2012 annual profits. The balance of 133400 yuan will increase the company's 2013 annual non-operating expenses.