The London Arbitral Tribunal has rejected the client's request for US$832.2 million (S$1.102 million) from three subsidiaries of Yangzijiang Shipbuilding.

Yangzijiang Shipbuilding Industry revealed the decision of the arbitral tribunal late at night on Monday (March 3) and pointed out that the claim involved 10 shipbuilding contracts, and the claimant said that the company breached the contract and sought compensation for the losses. Regarding the claimant's request for a refund of US$3.32 million in deposits from two of the contracts, the arbitral tribunal has not yet made a final decision, but the arbitral tribunal has shown that it does not support other losses claims totaling approximately US$832.2 million.

Yangzijiang Shipping Industry pointed out that this arbitration is expected to have no significant adverse impact on the group's financial status in fiscal year 2025.

The lawsuit, filed in 2022, involves customers ordering 10 ships worth $900 million.

In October last year, the SGX main board listed company revealed that these customers terminated their contracts in 2022 shortly after placing their orders at the end of 2021. The client filed an arbitration, accusing three wholly-owned subsidiaries of Yangzijiang Shipping Industry of breach of contract.

Further reading

Yangzijiang Shipbuilding Industry's stock price plummeted 16% at one point, trading is extremely active

Yangzijiang Shipbuilding Industry's stock price plummeted 16% at one point, trading is extremely active

Yangzijiang won a contract of 3.5 billion yuan and rose 11% in the early trading

Yangzijiang won a contract of 3.5 billion yuan and rose 11% in the early trading

The tribunal made a total of 10 partial arbitral awards on 10 shipbuilding contracts. Since these rulings are partial rulings, further claims can be filed in future litigation.

Yangzijiang Shipping Industry said in a release on Monday that although the arbitral tribunal's ruling was the final ruling, it could not determine the claimant's next action.

“We are in close coordination with our legal counsel to discuss the remaining matters and possible response strategies,” it said. It said that it will continue to focus on the progress of the arbitration and provide further information if necessary.

The share price of Yangtze River Shipping Industry opened on Tuesday (March 4) has fallen 2.48% to 2.36 yuan.