Shaanxi Huaqin Technology Industry (SHA:688281) expected to incur a disposal loss of about 4.4 million yuan stemming from controlled subsidiary Shenyang Ruihuasheng New Materials' termination of a 15-year factory lease with Shenyang EU Economic Development Zone Dongsheng Investment and Construction.
The decision follows actual construction progress at Shanghai Ruihuasheng, which has already built two production phases in Shanghai, according to a weekend filing with the Shanghai bourse.
Shenyang Ruihuasheng will pay 584,302 yuan in liquidated damages, forfeit a 500,000-yuan deposit and compensate 584,302 yuan for three months of rent.
Shares of the advanced material manufacturer declined 3% Monday.