Item 3. Legal Proceedings
Item 3. Legal Proceedings.
We are currently not a party to
any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against us
in all material aspects other than the legal proceeding disclosed below. We may from time to time become a party to various legal or administrative
proceedings arising in the ordinary course of our business, other than the following:
On or about August 3, 2018, written
decisions of administration penalty captioned Shou Guo Tu Zi Fa Gao Zi [2018] No. 291, Shou Guo Tu Zi Fa Gao Zi [2018] No. 292, Shou Guo
Tu Zi Fa Gao Zi [2018] No. 293, Shou Guo Tu Zi Fa Gao Zi [2018] No. 294, Shou Guo Tu Zi Fa Gao Zi [2018] No. 295 and Shou Guo Tu Zi Fa
Gao Zi [2018] No. 296 (together, the “Written Decisions”) were served on Shouguang City Haoyuan Chemical Company Limited (“SCHC”)
by the Shouguang City Natural Resources and Planning Bureau (the “Bureau”), naming SCHC as respondent. For more details and
information related to the Written Decisions, please see “Note 21 – Loss Contingencies, Notes to Consolidated Financial Statement”
contained in this annual report.
According to a Civil Mediation
Statement (No. (2025) Lu 0783 Min Chu 2607) issued by the Shouguang People's Court of Shandong Province on March 17, 2025, Shouguang City
Haoyuan Chemical Company Limited ("SCHC"), a wholly owned subsidiary of the Company, owes the plaintiff, Shouguang Chengyu Trading
Co., Ltd., a total of RMB 226,825.44 for goods. SCHC is also obligated to make monthly payments of RMB 50,000 to the plaintiff by the
15th of each month, starting in April 2025, until the debt is fully paid off.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.