HI-P produces Yota smartphone ....but Russian client fails to take delivery

Yota pack12.14

Hi-P International's wholly-owned subsidiary,Hi-P Electronics, has commenced arbitration proceedings against Yota Devices Limited for claims of a total sum of approximately USD126 million comprising substantially of finished goods in the possession of Hi-P Electronics.

Hi-P Electronics -- the original design manufacturer (ODM) for the phone -- entered into agreements with Yota to develop, manufacture and supply the Yotaphone 2 dual screen smartphone.

The Claim is in respect of Yota’s breaches of its agreements with Hi-P Electronics for amongst others, failure to take delivery of and make payment for the full minimum order quantity and firm forecast committed by Yota for the Yotaphone 2.

Hi-P Electronics intends to pursue the Claim strenuously, including obtaining release of a sum of USD15 million held in an escrow account.

The Company is confident of Hi-P Electronics’ Claim.

The financial impact of the dispute on the Group’s financial statements for the financial year ending 31 December 2015 will depend on the outcome of the Claim, including appropriate measures that may be taken to sell the finished goods.

Counter Name	Last	Change
AEM Holdings	1.840	-0.020
Best World	2.480	-
Boustead Singapore	0.950	-0.005
Broadway Ind	0.145	0.005
China Aviation Oil (S)	0.865	-0.005
China Sunsine	0.390	-0.005
ComfortDelGro	1.390	-0.010
Delfi Limited	0.875	-
Food Empire	1.120	-0.010
Fortress Minerals	0.310	-
Geo Energy Res	0.300	0.005
Hong Leong Finance	2.420	-0.010
Hongkong Land (USD)	3.420	0.010
InnoTek	0.505	-
ISDN Holdings	0.300	-0.005
ISOTeam	0.047	-
IX Biopharma	0.039	-0.004
KSH Holdings	0.245	-
Leader Env	0.049	-
Ley Choon	0.055	-0.001
Marco Polo Marine	0.068	-0.003
Mermaid Maritime	0.135	0.002
Nordic Group	0.305	-
Oxley Holdings	0.090	0.001
REX International	0.124	-
Riverstone	0.930	0.005
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	-
Sunpower Group	0.230	-
The Trendlines	0.063	-
Totm Technologies	0.019	-0.002
Uni-Asia Group	0.810	-0.035
Wilmar Intl	3.160	-
Yangzijiang Shipbldg	1.750	-0.020

Counter Name

Last

Change

AEM Holdings

1.840

-0.020

Best World

2.480

Boustead Singapore

0.950

-0.005

Broadway Ind