Mao Ye Wu, its brand new CEO Spanish for a year, this Tuesday is a confrontation The unfair competition lawsuit they demanded 3.18 million euros. The lawsuit was filed by Megawatt Projects SL, a Palafrugell company of which Mao Ye is a partner and dedicated to selling electrical installations for customers such as Endesa and other subsidiaries of the Enel group. Megawatt Projects was the exclusive representative in Spain of the products of a Chinese company Pinggao Group that declared important commission benefits.
Megawatt Projects was owned by two Girona businessmen, brothers Diego and José María Palacios, who controlled 50% of the capital, while the two Chinese, Mao Ye and You Zhou, held the remaining 50% split evenly.
According to the plaintiffs, the Chinese partners exploited the shareholding lock to force Megawatt Projects into liquidation and unfairly seize the entire profit pool.
The plaintiffs’ lawyer, Joan Pérez, notes that among the evidence is a recording made by Megawatt’s former adviser, Marta Lagarda, in which Pinggao Group executives are said to have admitted that Mao Ye and You Zhou aimed to retain all the work for themselves. Mao Ye’s lawyer, María Teresa Velasco, counters that the adviser recalled little, joking that his memory was that of a fish.
Last Thursday, Lagarda testified in court about the content of the recording. They were also summoned electronically as Pinggao’s witnesses, but did not connect.
a million dollar business
The relationship between the Palacios brothers and Mao Ye began in 2017. Megawatt sought a Chinese supplier for high voltage equipment to serve its client base. Mao Ye and You Zhou, seasoned in international deals, connected the Palacios brothers with several Asian manufacturers. From these introductions, a cooperation agreement with Pinggao Group, a Chinese multinational, was established. The agreement granted Megawatt the status of exclusive agent for Pinggao products in Spain with an initial commission of 5%, later raised to 10%.
As a result of this arrangement and the contributions made, Megawatt Projects brought Mao Ye and You Zhou into its ownership, with the new Chinese partners holding half of the company’s capital.
The business progressed smoothly. The lawsuit states that the sale of Pinggao products to Enel Group customers between 2018 and 2020 yielded commissions totaling five million euros for the Girona company. The performance was so strong that, according to the plaintiffs, Enel Group’s confidence in Megawatt grew, contributing to about 26 million euros in equipment orders for 2021-2023.
What began as a thriving enterprise appears to have faltered, with the Palacios brothers alleging that Mao Ye and You Zhou maneuvered to sever Megawatt’s ties with Pinggao to keep 100% of the commissions. They claim the partners dissolved Megawatt after declaring a “fictitious blockade” in decision making and cutting off access to crucial information.
The defense notes that Mao Ye and You Zhou notified Pinggao about Megawatt’s dissolution, triggering the termination of the agreement months before Megawatt ceased operations. They further suggest that the defendants may have formed a new entity to establish another relationship with Pinggao. On the defense side, Mao Ye’s attorney states that his client did not act with malice and that forwarding the liquidation request to Pinggao was an obligation given the commercial ties between Chinese nationals.
The defense also attributes the internal conflict to the Palacios brothers, who, by early 2020, saw Diego Palacios become the sole manager. They argue that the company moved from a transparent, jointly managed system to one in which Mao Ye and You Zhou withdrew and blocked access, prompting a dissolution request to restore a sense of security. The defendants contend that this framework could not be repaired, leaving no option but to dissolve the company.
The liquidator for Megawatt Projects attempted to recover Pinggao’s outstanding debts totaling 663,407 euros and to claim an investment, but failed. The plaintiffs hold Mao Ye and You Zhou responsible for the group’s conduct on a joint and several basis and seek compensation totaling 3.18 million euros, with a possibility of pursuing additional consequential damages.
Mao Ye Wu, its brand new CEO Spanish for a year, this Tuesday is a confrontation The unfair competition lawsuit they demanded 3.18 million euros. The lawsuit was filed by Megawatt Projects SL, a Palafrugell company of which Mao Ye is a partner and dedicated to selling electrical installations for customers such as Endesa and other subsidiaries of the Enel group. Megawatt Projects was the exclusive representative in Spain of the products of a Chinese company Pinggao Group that declared important commission benefits.
Megawatt Projects was owned by two Girona businessmen, brothers Diego and José María Palacios, who controlled 50% of the capital, while the two Chinese, Mao Ye and You Zhou, held the remaining 50% split evenly.
According to the plaintiffs, the Chinese partners exploited the shareholding lock to force Megawatt Projects into liquidation and unfairly seize the entire profit pool.
The plaintiffs’ lawyer, Joan Pérez, notes that among the evidence is a recording made by Megawatt’s former adviser, Marta Lagarda, in which Pinggao Group executives are said to have admitted that Mao Ye and You Zhou aimed to retain all the work for themselves. Mao Ye’s lawyer, María Teresa Velasco, counters that the adviser recalled little, joking that his memory was that of a fish.
Last Thursday, Lagarda testified in court about the content of the recording. They were also summoned electronically as Pinggao’s witnesses, but did not connect.
a million dollar business
The relationship between the Palacios brothers and Mao Ye began in 2017. Megawatt sought a Chinese supplier for high voltage equipment to serve its client base. Mao Ye and You Zhu, seasoned in international deals, connected the Palacios brothers with several Asian manufacturers. From these introductions, a cooperation agreement with Pingao Group, a Chinese multinational, was established. The agreement granted Megawatt the status of exclusive agent for Pinggao products in Spain with an initial commission of 5%, later raised to 10%.
As a result of this arrangement and the contributions made, Megawatt Projects brought Mao Ye and You Zhu into its ownership, with the new Chinese partners holding half of the company’s capital.
The business progressed smoothly. The lawsuit states that the sale of Pinggao products to Enel Group customers between 2018 and 2020 yielded commissions totaling five million euros for the Girona company. The performance was so strong that, according to the plaintiffs, Enel Group’s confidence in Megawatt grew, contributing to about 26 million euros in equipment orders for 2021-2023.
What began as a thriving enterprise appears to have faltered, with the Palacios brothers alleging that Mao Ye and You Zhou maneuvered to sever Megawatt’s ties with Pinggao to keep 100% of the commissions. They claim the partners dissolved Megawatt after declaring a “fictitious blockade” in decision making and cutting off access to crucial information.
The defense notes that Mao Ye and You Zhou notified Pinggao about Megawatt’s dissolution, triggering the termination of the agreement months before Megawatt ceased operations. They further suggest that the defendants may have formed a new entity to establish another relationship with Pinggao. On the defense side, Mao Ye’s attorney states that his client did not act with malice and that forwarding the liquidation request to Pinggao was an obligation given the commercial ties between Chinese nationals.
The defense also attributes the internal conflict to the Palacios brothers, who, by early 2020, saw Diego Palacios become the sole manager. They argue that the company moved from a transparent, jointly managed system to one in which Mao Ye and You Zhou withdrew and blocked access, prompting a dissolution request to restore a sense of security. The defendants contend that this framework could not be repaired, leaving no option but to dissolve the company.
The liquidator for Megawatt Projects attempted to recover Pinggao’s outstanding debts totaling 663,407 euros and to claim an investment, but failed. The plaintiffs hold Mao Ye and You Zhou responsible for the group’s conduct on a joint and several basis and seek compensation totaling 3.18 million euros, with a possibility of pursuing additional consequential damages.