HIFICHEM Faces Legal Challenge with 200 Million Yuan Lawsuit

On February 21, HIFICHEM announced that it received a change of petition request from the Shanghai Intellectual Property Court. The company is currently a defendant in a legal case involving a lawsuit amounting to 200 million yuan, which includes reasonable fees of 470,000 yuan paid by the plaintiff.

This case, initiated by Sennico Chemical (Shanghai) Co., Ltd., pertains to an alleged technical secret infringement. HIFICHEM had previously received legal documents from the court on August 2, 2024, including the complaint, evidence notification, and service notice related to this matter.

The announcement specified that this lawsuit would not affect the company's daily operations. However, due to the ongoing nature of the case, the company cannot yet assess the impact on its current or future profits, and the outcome remains uncertain. The plaintiff's requests include demands for the four defendants to immediately cease any actions infringing on the technical secrets, destroy relevant technical materials, and dismantle equipment related to the disputed technology.

HIFICHEM emphasized that, aside from this lawsuit, there are no other undisclosed significant litigation or arbitration matters. The company is committed to closely monitoring the case's progress and will take necessary steps to protect its and its shareholders' legal rights.

HIFICHEM specializes in producing eco-friendly, high-performance organic pigments and dyes, serving various sectors including inks, coatings, and plastics. In the first three quarters of 2024, the company reported revenues of 1.154 billion yuan and a net profit attributable to shareholders of 120 million yuan. The firm anticipates an annual profit of 110 million to 140 million yuan, reflecting a staggering increase of 899.77% to 1172.44% compared to the same period last year.