Nuchev Limited (ASX: NUC), an Australian nutrition, wellness and health-products business with a portfolio including Oli6®, BioPractica, and Medicine Tree, along with other health and wellness products distributed or sold under exclusive licence in Australia and New Zealand, has announced a significant development in its arbitration proceedings against Hulun Buir Nouvlait Dairy Co., Ltd (Nouvlait) in China. The Shanghai Arbitration Commission issued a final award dated 4 September 2026, finding in favour of Nuchev regarding a dispute that stemmed from a RMB5.0 million advance paid by Nuchev in 2021 for its former China infant formula registration strategy.
The Tribunal ordered Nouvlait to pay Nuchev RMB5.0 million, representing the original advance, plus interest from 22 December 2021 at the applicable one-year Loan Prime Rate. Additionally, Nouvlait must pay RMB2.89 million for actual losses, RMB267,215 in legal costs, RMB23,600 in appraisal costs, and RMB190,735 in arbitration costs. These fixed amounts total approximately RMB8.37 million. Including accrued interest to date, Nuchev’s PRC legal advisers estimate the total amount payable under the award at approximately RMB9.1 million, which is indicative of approximately A$1.9 million at current exchange rates. The Tribunal did not uphold Nuchev’s separate claim for anticipated profits, and Nouvlait is required to pay the award within 10 days.
Despite this positive ruling, Nuchev advises shareholders that no payment has yet been received, and material uncertainty surrounds the ultimate recovery amount and timing. The company’s PRC legal advisers do not currently expect Nouvlait to pay voluntarily, anticipating that court enforcement will be required. Nuchev is now taking advice on the enforcement process, including available assets, priority, and likely recovery costs and timelines. At 30 June 2026, the original Nouvlait deposit had a carrying value of A$150,000 in Nuchev’s financial statements following prior impairments. The net amount ultimately received by Nuchev will be after applicable adviser fees, enforcement and recovery costs, tax, and any costs of repatriating funds from China, meaning Nuchev is not yet in a position to quantify the final net proceeds. The company will provide further updates to the market as the enforcement and recovery process progresses.
