In May 2022, DXN Corp (Ningxia) divested its 80% share in Florin (Fujian) Integrated Agricultural Science and Technology Co Ltd (Florin Fujian) to Fujian Anxi for 58.66 million renminbi (RM38.1 million) payable in instalments.

In a Bursa Malaysia filing today, the health food supplements provider said it filed a writ of summons and a statement of claim after Fujian Anxi missed the second instalment, resulting in the termination of their stake disposal deal in July 2023.

Fujian Anxi had taken possession of the official seals of Florin Fujian and its wholly-owned subsidiary Anxi Gande Foluohua Integrated Agricultural Science and Technology Co Ltd.

In the aftermath of the deal’s termination, DXN Corp (Ningxia) is pursuing a two-million renminbi (RM1.27 million) penalty from Fujian Anxi, and other claims. DXN is determined to regain control over Florin (Fujian) and Anxi Gande Foluohua.

DXN, which was listed in May this year, stated the legal suit is unlikely to exert any significant financial impact on the company for the fiscal year ended Feb 29, 2024 (FY2024).

DXN’s shares ended one sen or 1.5% higher at 68 sen, giving it a market capitalisation of RM3.34 billion.