Zhejiang East Crystal Electronics Co. announced on Feb. 20, 2014 that they have received Jin Hua City Intermediate People’s court in Zhejiang, China, verdict regarding a contract dispute between subsidiary Zhejiang Orient Crystal Optics, Crystaltech HK Co. and Zhejiang Yunfeng.
The court’s verdict is as follows: Cancellation of the contract between East Crystal Electronics and Crystaltech signed in Jan. 2011 for procurement of sapphire crystal growth furnace Secondly, Orient Crystal Optics will return five sapphire growth furnaces to Crystaltech. Lastly, Crystaltech is to pay RMB 10.51 million (US $1.7 million) in equipment fees to Orient Crystal Optics, import VAT of RMB 2 million, and pay roughly RMB 3.73 million for raw materials, electricity costs, compensation and others. Additionally, Yunfeng is responsible for paying off debts for the third sruling above.
Moreover, Orient Crystal Optics will be covering RMB 4,948 out of the RMB 13,000 court acceptance fee. Crystaltech and Yunfeng will bear the responsibilities for legal fees.
If the preliminary verdict is executed, East Crystal Electronics will receive reimbursement for equipment fees, VAT, advanced materials, electricity costs, and compensation, said the company. Offset against construction costs and input tax account handling will not have an effect on the company’s profits for this quarter or in the future.
