Maixinlin's 890M Yuan Computing Procurement Contract Breached, 266M Yuan Deposit Paid Without Delivery

September 22 — Maixinlin (Jiangsu Maixinlin Aviation Technology Co., Ltd.) announced that it entered into a "Equipment Procurement Contract" with Company A (a placeholder name with no actual reference) on June 26, 2026, for the purchase of computing server-related equipment. The total contract value is approximately RMB 890 million (tax inclusive).

Payment and Delivery Status

As of the announcement date, Maixinlin has paid a total deposit of approximately RMB 266 million to Company A, representing 30% of the total contract value. No other payments have been made beyond this amount.

However, Company A has not delivered any equipment under the contract. The contractual delivery deadline has passed, and Company A is now in breach of contract.

Contractual Penalty Provisions

According to the contract terms:

• Company A was required to deliver the first batch of at least 32 units by August 25.
• If delivery is delayed by more than 3 working days, Company A must refund the full amount paid and pay a penalty of 5% of the total amount paid.

As of August 28, Maixinlin had not received any equipment. Under these terms, Company A should:

• Refund approximately RMB 266 million
• Pay a penalty of RMB 13.344 million

The contract further stipulates:

• If all goods are not delivered by September 21 and the delay exceeds 3 working days, Company A must refund the payments for undelivered goods and pay a penalty of 5% of the value of the undelivered portion.

On September 14, Maixinlin sent a formal reminder letter urging Company A to fulfill its delivery obligations. As of September 21, 2026, no equipment had been received. Under this clause, Company A should pay a penalty of RMB 44.48 million.

Risk of Deposit Recovery

Maixinlin has warned of the risk that the deposit may not be recoverable:

"If Company A ultimately fails to perform its obligations, although the company may seek refunds and compensation under the contract, the actual recovery outcome will be affected by Company A's performance capacity, solvency, and the dispute resolution process. There is a risk that the deposit may not be fully or timely recovered."

Reasons for Delay

In its announcement, Maixinlin attributed the delay to:

• Shortages in the upstream supply chain
• Supply chain disruptions
• External uncertainties

These factors have severely extended delivery timelines beyond the originally planned schedule, preventing Company A from meeting the contractual delivery milestones.

Next Steps

Maixinlin stated that its computing business is a key strategic focus. The company's primary objective remains securing the contracted equipment to support the implementation of its computing strategy.

To this end, management has engaged in multiple rounds of negotiations with Company A regarding:

• Extended delivery arrangements
• Alternative supply plans
• Compensation for breach of contract

As of now, no agreement has been reached.

The company will continue to urge Company A to complete delivery as soon as possible and will actively push for a resolution on delayed delivery and alternative supply plans. If negotiations fail to produce a consensus, or if Company A explicitly states it cannot fulfill the contract, Maixinlin will take measures in accordance with the contract and applicable laws, including but not limited to:

• Terminating the contract
• Demanding a full refund of payments made
• Seeking compensation for losses

These actions are intended to protect the interests of the company and its shareholders.

Company Background

Jiangsu Maixinlin Aviation Technology Co., Ltd. is primarily engaged in the manufacturing of aerospace components and electronics.

(Source: The Paper / Pengpai News)