Suzhou Everbright Photonics (SHA:688048) agreed in a court-mediated settlement to reduce the debt owed by an unnamed client to the company to 32.2 million yuan from the original balance of 42 million yuan, according to a Tuesday filing with the Shanghai bourse.

The listed company agreed to supply semiconductor laser bars to the client for 60 million yuan in three installments of 18 million yuan and one installment of 6 million yuan. The customer only paid the first installment of 18 million yuan and left a 42 million yuan balance.

The two parties then signed an agreement in September 2023 to pay the balance, but the client still refused to pay, leading to the lawsuit.

The company will then be entitled to seek court enforcement of the new agreement if the new amount is still not collected, according to the filing.

Suzhou Everbright already made provisions for the uncollected debt, and the unsettled amount could help with profitability, it said.

Company shares fell 2% during afternoon trading on Tuesday.