Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) : Announcement on the progress of litigation involving holding subsidiaries

Securities code: 300083 securities abbreviation: Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) Announcement No.: 2022-026 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083)

Announcement on the progress of litigation involving holding subsidiaries

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) Machinery Co., Ltd. (hereinafter referred to as "Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) "), a holding subsidiary of Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (hereinafter referred to as "the company"), recently learned that Beijing Jingdiao Technology Group Co., Ltd. (hereinafter referred to as "Beijing Jingdiao") submitted the application for change of litigation to the Beijing Intellectual Property Court. The specific situation is hereby announced as follows:

1、 Basic information about the case

1. Basic information of litigation

In November 2019, Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) received the relevant materials of the case of Beijing Jingdiao suing Tian and Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) Machinery Co., Ltd. (hereinafter referred to as "Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) ") for infringing technical secrets issued by the Beijing Intellectual Property Court. The case number is (2019) Jing 73 min Chu No. 1361.

Beijing Jingdiao said: Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) used its technical secret imitation products and sold them, and applied for a patent for its technical secret, infringing on its technical secret. Beijing Jingdiao claims 29 patents infringed by Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , of which only one patent (stiffener technology, i.e. utility model patent with patent No. 2017210954405, hereinafter referred to as the "patent involved") is used in the b-600a-b machine tool of Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , and the other 28 patented technologies are not used in the products produced by Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) .

For details, please refer to the company's cninfo on January 7, 2021( http://www.cn.info.com.cn. )Reply of the company and Shenwan Hongyuan Group Co.Ltd(000166) securities underwriting and recommendation Co., Ltd. on the examination and inquiry letter of the company's application for issuing shares to specific objects (question 3).

2. Claim

The claims of Beijing Jingdiao in the case are:

(1) Defendant 1 (Tian) and defendant 2 (Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) ) immediately stopped all unfair competition against the plaintiff's trade secrets, that is, immediately stopped the production and sales of b-600a-b machine tools, recovered and destroyed the machine tools of b-600a-b and other models that have been produced or sold Stop infringing 29 trade secrets of the plaintiff (Beijing Jingdiao) "Jingdiao motorized spindle structure and tool change form";

(2) Defendant 1 and defendant 2 jointly and severally compensate the plaintiff for economic losses of RMB 92 million; (3) Defendants 1 and 2 publicly made written statements in newspapers and periodicals to eliminate the adverse impact on the plaintiff caused by their unfair competition;

(4) The first defendant and the second defendant jointly and severally bear the litigation costs of this case.

2、 Progress of this lawsuit

Beijing Jingdiao again submitted the application for change of claim to Beijing Intellectual Property Court, applying to change the original claim as follows:

1. It is requested to order defendant 1 (Tian), defendant 2 (Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) Machinery Co., Ltd.) and defendant 3 (Xia) to immediately stop all acts of unfair competition infringing on the plaintiff's trade secrets, that is, to immediately stop the production and sales of machine tools of model b-600a-b, take back and destroy the machine tools of model b-600a-b Stop infringing the plaintiff's (Beijing Jingdiao) "Jingdiao motorized spindle structure and tool change form" and other business secrets.

2. It is requested to order defendant 1, defendant 2 and defendant 3 to jointly and severally compensate the plaintiff for economic losses of RMB 37981 million and reasonable rights protection expenses of RMB 2 million, totaling RMB 38181 million.

3. Request to confirm that the plaintiff is the obligee of ten patents.

4. Request to order defendant 1, defendant 2 and defendant 3 to jointly and severally bear the litigation costs of this case.

3、 Judgment or ruling of this case and related cases

In the case of the plaintiff suing Tian for divulging trade secrets, the court found that the economic loss caused by the sale of model b-600a-b machine tools in Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) to the plaintiff was only 2.1547 million yuan.

As there is a large gap between the economic loss identified in the above case and the economic loss claimed by the plaintiff of 381.81 million yuan, the presiding judge asked the plaintiff to further sort out and explain the basis and rationality of the amount of economic loss claimed by the plaintiff.

After confirming with the lawyer representing the case, at present, Beijing Jingdiao has not filed the 29 patents applied for by Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , which technical contents disclosed in the 29 patents are the technology of Beijing Jingdiao, that is, the technical secret points have not been submitted; At the same time, Beijing Jingdiao also did not submit the carrier evidence of its possession of these technical secrets and the evidence that relevant personnel had access to these technical secrets.

As of the disclosure date of this announcement, Beijing Jingdiao company has only made claims without submitting relevant documents. The case has not completed the exchange of evidence and has not entered the substantive trial stage.

4、 Possible impact of this litigation and arbitration on the company

If the court finally finds that the 29 patents involved in Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) infringe the business secrets of Beijing Jingdiao and is required to stop the infringement, Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) shall not only compensate Beijing Jingdiao for its losses, but also lose the right to use the 29 patents. However, since the 29 patents do not involve the core technology of Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , and the 29 patents involved in Shenzhen Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) have not been used (or have been terminated) so far, the loss of the right to use the 29 patents will not have a material impact on the normal production and operation of the listed company.

As of December 31, 2021, the listed company and its subsidiaries have a total of 697 valid patents, including 40 invention patents, 526 utility models, 131 design patents, and 61 computer software copyrights. The company is recognized as a "national intellectual property advantage enterprise" by the State Intellectual Property Office.

As the above-mentioned litigation has not entered the substantive trial stage, the company is unable to judge the specific impact on the company's profits in the current period or after the period.

The company will pay close attention to the progress of litigation matters, carry out corresponding accounting treatment according to the requirements of accounting standards and actual conditions when necessary, and fulfill the obligation of information disclosure in time. Please pay attention to investment risks.

5、 Documents for future reference

1. Application for change of claim.

It is hereby announced.

Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) board of directors February 19, 2022

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