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Ares Asia Limited ( (HK:0645) ) just unveiled an announcement.
Ares Asia Limited’s subsidiary AAR has secured a favorable final arbitral award from the Singapore International Arbitration Centre over a disputed coal purchase contract, after its supplier defaulted on a shipment. The tribunal ordered the supplier to refund US$3.83 million paid under the agreement, compensate US$137,875 in lost profit, pay interest and legal and arbitration costs, and indemnify AAR against any future claims from the end customer related to the shipment.
The award directly affects Ares Asia’s credit risk exposure, as recovery of about US$3.32 million in receivables from the end customer and the potential reversal of an US$850,000 expected credit loss allowance hinge on successful enforcement. The company, working with professional advisers, plans to pursue enforcement of the award and will update shareholders on material developments, underscoring ongoing legal and collection risk even after the favorable ruling.
The most recent analyst rating on (HK:0645) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Ares Asia Limited stock, see the HK:0645 Stock Forecast page.
More about Ares Asia Limited
Ares Asia Limited is a Bermuda-incorporated company listed on the Hong Kong Stock Exchange, operating through subsidiaries in the coal trading sector. The group engages in sourcing and supplying coal to end customers, with its business exposed to counterparty performance risks in international commodity contracts and cross-border arbitration outcomes.
Average Trading Volume: 86,882
Technical Sentiment Signal: Hold
Current Market Cap: HK$70.82M
For an in-depth examination of 0645 stock, go to TipRanks’ Overview page.