Singapore-listed parts maker Miyoshi has announced that Core Power (Fujian) New Energy Automobile, a China-based entity in which it holds a 42% stake, has received three separate court orders to pay a total sum of RMB60.8 million.
Core Power was set up to make electric cars but has become dormant.
According to Miyoshi, the first execution notice was issued by the People's Court of Yong'an City, Fujian Province on June 7 2022 requiring Core Power to pay RMB13.6 million.
The second execution notice was issued by Fuzhou Intermediate People's Court of Fujian Province
requiring Core Power on July 5 to pay RMB27.1 million.
On the same day, Core Power was issued a notice by the People's Court of Yong'an City to pay RMB20 million.
There was no mention of which are the parties supposed to receive the money from Core Power.
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Miyoshi says it is now in discussion with Core Power for more information and on the next course of action in respect of the abovementioned court orders.
According to Miyoshi, it has on July 30 2020 reclassified its investment in Core Power to be a financial asset designated at fair value through profit or loss.
On Aug 31 the same year, the company had deemed its fair value in Core Power to be zero, with a $17.7 million fair value loss of investment booked.
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According to Miyoshi, despite its 42% stake, does not have board representation in Core Power and “thus does not have any significant influence over Core Power” and that it is unable to participate in any decision making of Core Power.”
Miyoshi shares closed at 2 cents, up 5.26%.
