Shanghai Securities News, 8/10/11
Guangdong-based smartcard solutions supplier Eastcompeace (002017.SZ), which suspended trading temporarily after China Mobile (NYSE: CHL; 0941.HK) postponed a contract with the company, announced today that China Mobile had opted to go ahead with the contract. Under the conditions of the procurement agreement, however, China Mobile will collect on Eastcompeace's performance bond and will require the company to assume all return and repair costs, and to pay the penalty for breach of contract. Eastcompeace will be liable for approximately RMB 5 to 6 mln.
Editor's Note: For more information on this topic, please see "Eastcompeace Confirms China Mobile SIM Contract Postponed," MD 7/27/11 issue.