The 2 billion yuan performance bond has been sold out, and even the 160 million yuan performance bond paid to the employer has been delayed. Reluctantly, Exploration and Design Co., Ltd. (603458.SH, stock price of 461 yuan, market value of 1.435 billion yuan) wants to file a lawsuit.
On the evening of June 14, Exploration and Design Co., Ltd. announced that it planned to file a lawsuit against Zunyi Urban Construction (Group) Co., Ltd. (formerly known as Zunyi Affordable Housing Construction Investment and Development Co., Ltd.) and Zunyi Urban Investment Health Industry Co., Ltd., requesting them to return the Women's and Children's Hospital Project of Zunyi Grand Health Maternal and Infant Care Center paid by the company Performance bond of Zhongzhuang Biyunfeng shantytown reconstruction project and Zunyi Biyunfeng ecological health city Hongwu Road construction project, and sued them to bear the capital occupation fee and other related costs.
Screenshot of the official website of Exploration and Design Co., Ltd
According to the official website of Survey&Design, the company is the first survey and design enterprise listed on the main board of Shanghai Stock Exchange in southwest China. Since 2015, it has been included in the list of "Top 100 Enterprises in Guizhou Province" and "Top 100 Private Enterprises in Guizhou Province" for seven consecutive years. Since 2017, it has been included in the list of top 50 survey and design revenue of national engineering survey and design enterprises for four consecutive years. It has become a domestic first-class group engineering technology service enterprise in the field of infrastructure construction.
In addition, Tianyan Inspection shows that the actual controllers of Zunyi Urban Construction (Group) Co., Ltd. and Zunyi Urban Investment Health Industry Co., Ltd. are Zunyi State owned Assets Supervision and Administration Commission.
Total winning amount of three projects exceeds 2 billion yuan
The main business of Exploration&Design Co., Ltd. is engineering consulting and engineering contracting. The three projects that were "broken" this time were awarded five years ago.
As the leader, the consortium participated by Exploration and Design Co., Ltd. submitted the bidding documents for the Design and Construction EPC Project of Women's and Children's Hospital of Zunyi Great Health · Maternal and Infant Care Center to Zunyi Chengtou Health Industry Co., Ltd. in May 2019. According to the announcement of bid winning candidates released on May 9, 2019, the company became the first bid winning candidate for the project.
According to the contract signed in January 2020, the total contract amount of the project undertaken by Exploration and Design Co., Ltd. and its wholly-owned subsidiary Guizhou Hufeng Traffic Construction Engineering Co., Ltd. (hereinafter referred to as Guizhou Hufeng) is RMB 899 million. At the same time, according to the contract, the company paid 71 million yuan of project performance bond to the employer.
Exploration and Design Co., Ltd. sued two state-owned enterprises. The picture shows the information of Exploration and Design Co., Ltd. Building
For the shantytown reconstruction project in Zhongzhuang Biyunfeng District, as the leader, the consortium participated by Exploration and Design Co., Ltd. submitted the bidding documents to Zunyi Affordable Housing Construction Investment Development Co., Ltd. in May 2019. According to the announcement of bid winning candidates released on May 17, 2019, Exploration and Design Co., Ltd. became the first bid winning candidate of the project.
On May 21, 2019, Exploration&Design Co., Ltd. announced that the company was the first candidate for winning the bid for the above project. On January 19, 2020, Exploration and Design Co., Ltd. received the formal contract signed by Zhongzhuang Biyunfeng shantytown reconstruction project, with the contract price of 586 million yuan, of which the contract amount undertaken by Exploration and Design Co., Ltd. and its wholly-owned subsidiary, Guizhou Hufeng, totaled 582 million yuan. According to the contract, Exploration&Design Co., Ltd. paid the Employer a performance bond of 44 million yuan.
The bidding process of Hongwu Road Construction Project of Zunyi Biyunfeng Ecological Health City is similar to the previous two projects. On January 19, 2020, Exploration&Design Co., Ltd. received the formal contract signed for the Hongwu Road Construction Project of Zunyi Biyunfeng Ecological Health City, with a contract price of 606 million yuan. The contract amount undertaken by the company and its wholly-owned subsidiary, Guizhou Hufeng, totaled 598 million yuan. According to the contract, Exploration&Design Co., Ltd. paid the Employer a performance bond of 45 million yuan.
The company has withdrawn credit impairment loss of 80 million yuan
We won the bid for three major projects, but we were unable to start construction. According to the announcement of Exploration and Design Co., Ltd. in December 2023, after the signing of the EPC contract, the company actively fulfilled the responsibilities of the contractor and the leader of the consortium, constantly communicated with the owner about the project commencement, and actively provided convenience for the owner's financing. However, the owner and the supervision unit have not issued the notice of commencement to the company.
In December 2023, Exploration and Design Co., Ltd. received the Notice of Project Termination issued by Zunyi Urban Investment Health Industry Co., Ltd. and Zunyi Urban Construction (Group) Co., Ltd, As a result, the three EPC contracts mentioned above have been unable to be actually performed.
The project has failed, and the deposit of 160 million yuan previously paid by Exploration and Design Co., Ltd. is hard to recover. By the end of the third quarter of 2023, Exploration&Design Co., Ltd. had withdrawn 80 million yuan of credit impairment loss from the above performance bond.
Up to now, the latest announcement of Exploration and Design Co., Ltd. shows that there is still no progress in the recovery of the deposit: after the termination of the project, the company has negotiated with the owner for many times to handle the contract cancellation and return of the project performance bond, and urged the owner to return the above project performance bond as agreed in the contract, but as of the disclosure date of this announcement, The company has not received the returned project performance bond.
Huang Lai filed a lawsuit for the project of exploration and design shares worth 2 billion yuan, and the picture shows the data of legal mallet
How does this affect the performance of Exploration&Design? In 2023, the Company's revenue will reach 2.021 billion yuan, down 6.25% year on year; The net profit attributable to shareholders of the listed company was 56.59 million yuan, down 65.06% year on year. In the first quarter of this year, the company achieved revenue of 262 million yuan, a year-on-year decrease of 22.48%, and the net profit attributable to shareholders of the listed company lost 29.13 million yuan.
Exploration and Design Co., Ltd. announced that there was uncertainty about the follow-up of the proposed lawsuit, and it was temporarily impossible to judge the specific impact of the proposed lawsuit on the company. The Company will pay close attention to the follow-up progress of the matter, and perform the relevant approval and information disclosure obligations in a timely manner in strict accordance with the provisions and requirements of relevant laws and regulations.
On matters related to this lawsuit, a reporter from the Daily Economic News called the Board Secretary Office of Exploration and Design Co., Ltd. on June 15, but the phone was not connected.
(The content and data of this article are for reference only and do not constitute investment suggestions. Investors should operate accordingly at their own risk.)
reporter |Chen Qing
edit | He Xiaotao, Zhang Haini, Du Bo
Proofread| Liu Xiaoying
Cover photo source: Daily Economic News Liu Guomei
| Original article of Daily Business News |
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