It does not expect the commencement of arbitration proceedings to have a material impact on the company’s financial position
ADDVALUE Technologies has commenced arbitration proceedings in Hong Kong against Xepic to claim at least US$2.1 million and damages for the wrongful termination or repudiation of contracts, together with interest and costs.
On Tuesday (Nov 26), the mobile satellite communications company said the contracts were related to the production of field programmable gate arrays-based products and the provision of original equipment manufacturing technical services by Addvalue’s wholly owned subsidiary to Xepic.
Addvalue does not expect the commencement of arbitration proceedings to have a material impact on its financial position.
The company said it is working closely with its lawyers on the matter and will “take all necessary steps to enforce and protect its rights”.
Also known as X-Epic, the Nanjing-based software start-up was founded in March 2020 and specialises in electronic design automation technology. China Information and Communications Technology, Japan’s Mirae Asset and Sequoia Capital China are counted among its investors.
Data provider Pitchbook showed that the private company currently has about 400 employees – though a July 2024 report by South China Morning Post reported that the company was slashing as much of this figure, citing people familiar with the matter.
Online news portal Taiwan News in October 2023 reported that Xepic had established an office in Taiwan in 2020 without permission from the country’s authorities. It also said Xepic’s management hired Taiwanese engineers through “personal connections, job websites and headhunting agencies” in December that year.
In May 2022, an article by the Taipei Times named Xepic as the parent of one of the Chinese companies raided by Taiwan authorities for the suspected poaching of talent from Taiwan’s semiconductor and high-tech sectors.
Shares of Addvalue ended Monday down S$0.001 or 8.3 per cent at S$0.011, before the company announced it commenced arbitration proceedings against Xepic.
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