July 23 (NBD) -- Jiangsu High People's Court on Sunday lifted the ruling to seal up immovables of a commercial vehicle industrial park of a Nanjing-based subsidiary of Zhuhai Yinlong Energy Co., Ltd. (Zhuhai Yinlong).
The seizure warrant was enacted on July 20th this year by the Court over alleged payment arrears to the carmaker's contractors. The allegation hadn't been confirmed by the Nanjing-based unit, which will be referred to as Nanjing Yinlong hereinafter.
The removal of the seizure warrant came after Nanjing Yinlong reconciled with its contractor, which may bring some relief to Dong Mingzhu, the largest individual shareholder of Zhuhai Yinlong and chairwoman of Chinese home appliance maker Gree (000651.SZ).
The court ruling said that MCC5 Group Corporation Limited (Shanghai) applied to the court on Saturday to remove the seizure warrant on Nanjing Yinlong and the application got approved on Sunday. MCC5 Group Corporation Limited (Shanghai) is the contractor of Nanjing Yinlong's Phase One project.
With regard to the reason behind the seizure warrant, a source at Nanjing Yinlong told NBD the company and its partner had some different interpretations on contracts, but the dispute had been settled through friendly negotiation and the company has resumed normal operation. However, Nanjing Yinlong refused to give more details.
Since early 2018, Nanjing Yinlong and its parent company Zhuhai Yinlong have been entangled in a series of bad news including alleged defaults in payment to suppliers, temporary plant shutdown, downsizing, overstock of new energy buses, drastic revenue slide and suspension of IPO.
According to media reports citing a person-in-charge at Nanjing Yinlong, the construction of the first phase of the unit's industrial park has been completed. The Phase One project is expected to start production in late August of 2018 with a designed annual capacity of 25,000 electric commercial vehicles, battery cells of 500 million Ah, and start-stop batteries for 400,000 vehicles, and its annual output value is projected to reach 14.6 billion yuan (2.2 billion U.S. dollars).