Zhitong Financial App News, derivative Technology (300176.SZ) announcement, the company's wholly-owned subsidiary Guangdong Hongte Precision Technology Zhaoqing Co., Ltd. (referred to as "Zhaoqing Hongte") is the engine front cover supplier of Company A. Zhaoqing Hongte supplies some batches of engine front cover oil sealing holes to A Company with taper problems, resulting in oil leakage while the vehicle is driving. As a result, Company A needs to replace the front cover of the engine and overhaul the relevant vehicles after sale, and Zhaoqing Hongte needs to bear the relevant costs.
On August 23, 2023, Zhaoqing Hongte received an email from Company A, which showed that "the number of products involved is 4144, and the cost so far is about US $1.17 million." At present, the two sides are still communicating on the cost situation, Zhaoqing Hongte will actively communicate and negotiate with Company An in order to reduce the loss. In addition to the above costs of about US $1.17 million, the company expects that Zhaoqing Hongte will also receive fees related to the replacement of products related to the whole vehicle.