Claims against XDL unit withdrawn
Sports shoemaker says legal cases have been closed
PETALING JAYA: Four claims made against a subsidiary of Xidelang Holdings Ltd (XDL) in China have been withdrawn and the cases have been closed, the group says.
A separate claim, made by XDL’s unit against another party, has also been withdrawn, it said.
In a filing with Bursa Malaysia, XDL said it had been made aware from the China Judgement Online website that there were several litigation matters involving its unit Fujian Province Jinjiang City Chendai HongPeng Footwear Manufacturing Co Ltd (HongPeng Footwear).
HongPeng Footwear is a wholly owned subsidiary of XDL, which was incorporated in China, and is principally engaged in the design, manufacturing and marketing of sports shoes.
It contributed about 83.9% of the company’s pre-tax profit on a consolidated basis in the financial year ended Dec 31, 2017.
The case filed by XDL’s unit, on April 19, 2016, was to claim compensation following the defendant’s failure to vacate a parcel of land belonging to HongPeng Footwear.
Following settlement negotiations, the group said the defendant agreed to vacate and return the land to HongPeng Footwear and bear all the legal costs incurred by the unit.
The other four claims, against HongPeng Footwear and other parties, were filed by the China Construction Bank Corp Jinjiang Branch – and later withdrawn.
The group told Bursa Malaysia that the claim filed by its unit was “not material to the group” as it arose from the ordinary course of business.
The other cases, it said, would not have any material and adverse effect on its financial position.
At last look, shares in XDL traded unchanged at 12 sen.