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	2.370	0.030
Best World	2.460	-
Boustead Singapore	0.945	-0.015
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	0.005
ComfortDelGro	1.480	-
Delfi Limited	0.895	-
Food Empire	1.260	-
Fortress Minerals	0.300	-0.005
Geo Energy Res	0.305	-0.005
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.140	0.020
InnoTek	0.550	0.030
ISDN Holdings	0.305	-0.005
ISOTeam	0.044	0.001
IX Biopharma	0.042	0.001
KSH Holdings	0.250	-
Leader Env	0.047	-0.004
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.139	-0.001
Nordic Group	0.305	-0.005
Oxley Holdings	0.088	-0.001
REX International	0.133	-0.003
Riverstone	0.795	-0.020
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-0.025
Sunpower Group	0.210	0.005
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-0.005
Wilmar Intl	3.470	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

2.370

0.030

Best World

2.460

Boustead Singapore

0.945

-0.015

Broadway Ind