Yida China (03639) filed an arbitration application

According to Zhitong Finance App, Yida China (03639) announced that on March 4, 2021, the seller (Yida Development, Yida Service, Dalian Lanwan and Chengyue) signed an equity transfer agreement and supplementary agreement with the buyer Longhu Jiayue Property. The equity transfer agreement stipulates that the seller will transfer the interest in the target company Yida Property for sale to the buyer at a cost of RMB 1,273 billion.

Recently, the Company and the seller received the “Notice of Arbitration” from the China International Economic and Trade Arbitration Commission (CITIC). The buyer (claimant) filed an arbitration application against the Company and the seller (respondent) with the Trade Intermediary (the arbitration). The arbitration claim: (i) the seller paid the claimant a profit margin of approximately RMB 129.4 million; (ii) the seller paid the claimant a penalty of approximately RMB 127.3 million; (iii) the seller paid the property management fee/service fee for the target company's vacant property; (iv) the company was jointly and severally liable for the settlement of the arbitration claims in subparagraphs (i) and (ii) above; (v) the respondent bears all of the expenses of the claimant, such as preservation fees and attorney's fees, due to the arbitration.

The Company is currently seeking legal advice on the above arbitration procedure and evaluating the impact of the arbitration on the Company and the Group.