Baili Technology is involved as a defendant in a financial loan dispute amounting to 49.9 million yuan; previously, approximately 28.34 million shares held by the largest shareholder were judicially frozen.

On the evening of March 12, Baili Technology (603959.SH) announced a lawsuit involving a legal dispute with the Yueyang Yueyanglou District People’s Court regarding a financial loan contract dispute with China Construction Bank Yueyang Branch, involving an amount of 49.9 million yuan.

The announcement states that on September 10, 2025, and September 17, 2025, the plaintiff, China Construction Bank Yueyang Branch, and the defendant, Baili Technology, signed a “Bank Acceptance Agreement” and a “Deposit Pledge Contract.” The bank has delivered three bank acceptance bills to the defendant, with amounts of 2.5 million yuan, 22.5 million yuan, and 24.9 million yuan, respectively. The bills are due on March 11, 2026, and March 18, 2026.

On January 20, 2026, the defendant sent a letter to the plaintiff, informing them to stop paying all interest on bank debts. The defendant has clearly stated that it cannot fulfill its contractual obligations. Therefore, according to the contract and legal regulations, the defendant should increase the acceptance guarantee deposit by 29.9 million yuan and prioritize the repayment of the 20 million yuan guarantee deposit pledged by the defendant with the plaintiff.

The plaintiff’s lawsuit requests that the court order the defendant to increase the acceptance guarantee deposit by 29.9 million yuan; that the plaintiff has priority over the 20 million yuan guarantee deposit; and that the litigation and preservation costs be borne by the defendant.

Baili Technology stated that, as of now, the case has not yet gone to a formal court hearing, and the final impact will depend on subsequent court rulings or enforcement results. The company has taken various measures, collected evidence, and organized legal personnel to prepare for the defense.

Baili Technology also mentioned that the two bank acceptance bills due on March 11, 2026 (2.5 million yuan and 22.5 million yuan) have already been repaid on March 11, 2026. The remaining bill of 24.9 million yuan will mature on March 18, 2026. The company is actively communicating with the bank to ensure timely repayment.

It is worth noting that Baili Technology was previously sued by another bank due to an outstanding loan of 84.85 million yuan from its subsidiary, and nearly half of its largest shareholder’s shares have been frozen.

An announcement on March 5 revealed that the company received a notice from Changzhou Tainin District People’s Court regarding a lawsuit involving the company, its controlling subsidiary Baili Lithium Battery, and related parties against China Agricultural Bank Changzhou Tainin Branch.

The defendant, Baili Lithium Battery, as the borrower, signed four “Working Capital Loan Contracts” with China Agricultural Bank Changzhou Tainin Branch during July 2025 and January 2026, with a total loan amount of 84.85 million yuan for purchasing goods and daily operations.

The subsidiaries, Hunan Pailer Baili Technology (referred to as “Pailer Baili”), Baili Technology, and Wang Hairong, signed “Maximum Guarantee Contracts” with the plaintiff to provide maximum guarantee for the loans of Baili Lithium Battery, with joint liability guarantees.

The plaintiff disbursed a total principal of 84.85 million yuan to Baili Lithium Battery on July 11, July 14, July 15, 2025, and January 9, 2026. The company has defaulted on the loans, prompting the plaintiff to demand repayment, but the company has not repaid, and the plaintiff has declared the loans due early.

Previously, Baili Technology also disclosed that some shares held by its largest shareholder, Hunan Pailer Technology Co., Ltd., have been judicially frozen.

The announcement states that 28,342,400 shares held by the largest shareholder have been frozen, accounting for 48.80% of their holdings and 5.78% of the total share capital.

The freeze was requested by Changsha Economic Development Key Industry Investment Partnership (Limited Partnership), due to judicial freezing procedures related to disputes with Hunan Pailer and other related entities, from March 4, 2026, to March 3, 2029.

According to records, Baili Technology was listed on the Shanghai Stock Exchange in 2016 and is a technology service provider dedicated to offering integrated solutions for smart factories in the energy and materials sectors.

The company’s previous forecast for 2025 indicates an expected net profit attributable to the parent company of -140 million to -200 million yuan, reducing losses by 201.0 million to 261.0 million yuan compared to 2024. The net profit attributable to the parent after deducting non-recurring gains and losses is expected to be -170 million to -230 million yuan, a reduction of 169 million to 229 million yuan compared to 2024.