Guangdong Chaohua Technology Co.Ltd(002288) : Announcement on major litigation matters

Securities code: 002288 securities abbreviation: Guangdong Chaohua Technology Co.Ltd(002288) No.: 2022-009 Guangdong Chaohua Technology Co.Ltd(002288)

Announcement on major litigation matters

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.

Important content tips:

1. The litigation stage of the case: the first instance ruling dismisses the prosecution and the plaintiff appeals;

2. The party status of the listed company: CO defendant;

3. Amount involved in litigation: principal 200 million + partial interest, liquidated damages and lawyer’s fees 107.3 million;

4. Whether it will have a negative impact on the listed company: due to the rejection of the plaintiff’s lawsuit in the first instance judgment, the plaintiff is currently in the appeal stage, and the impact on the specific performance data cannot be judged. The final actual impact shall be subject to the court’s judgment.

Guangdong Chaohua Technology Co.Ltd(002288) (hereinafter referred to as “the company” or ” Guangdong Chaohua Technology Co.Ltd(002288) “) recently received the decision on administrative supervision measures from Guangdong securities regulatory bureau. The company checked the major lawsuits that were not disclosed in time. The verification results are as follows:

1、 Basic information on the acceptance of this litigation

The case of loan dispute between Mr. Liang Jianfeng and Mr. Zhao Jizeng [case No.: (2021) Yue 03 min Chu No. 100] was accepted by Shenzhen intermediate people’s court, and the company was taken as the co defendant. The court of first instance dismissed Mr. Zhao Jizeng’s lawsuit. Mr. Zhao Jizeng has appealed to the higher people’s Court of Guangdong Province and remains to be heard.

2、 Basic information of the case

1. Court of acceptance: Shenzhen intermediate people’s Court of Guangdong Province

2. Place of acceptance: Shenzhen, Guangdong Province

3. Date of hearing: July 12, 2021

4. Ruling date: November 16, 2021

4. Name of litigant:

Plaintiff: Zhao Jizeng

Defendants: Liang Jianfeng, Feng Biao, Guangdong Chaohua Technology Co.Ltd(002288)

5. Cause of action of this lawsuit

The plaintiff Zhao Jizeng claimed that on June 1, 2017, Zhao Jizeng signed the loan contract with Liang Jianfeng, Feng Biao and Guangdong Chaohua Technology Co.Ltd(002288) . The contract agreed that Zhao Jizeng would provide Liang Jianfeng with a loan of 200 million yuan, with a term of one year, repay the principal and interest when due, and Feng Biao and Guangdong Chaohua Technology Co.Ltd(002288) as guarantors would bear joint and several guarantee liabilities for the above debts of Liang Jianfeng. As of December 31, 2020, the principal, liquidated damages and some interest have not been repaid. Zhao Jizeng filed the lawsuit in order to protect his legitimate rights and interests.

6. The plaintiff’s claim

(1) According to the law, Liang Jianfeng returned Zhao Jizeng’s loan principal of 200 million yuan and loan interest of 67 million yuan;

(2) According to the law, Liang Jianfeng was ordered to pay the plaintiff liquidated damages of 40 million yuan and the liquidated damages calculated at the annual interest rate of 24% based on the principal of 200 million yuan from December 21, 2019 to the date when Liang Jianfeng actually paid all the arrears;

(3) According to the law, Liang Jianfeng was ordered to pay the plaintiff’s lawyer’s fee of 300000 yuan;

(4) Judge Liang Jianfeng according to law to bear all litigation costs such as litigation costs of the case;

(5) According to the law, Feng Biao and Guangdong Chaohua Technology Co.Ltd(002288) are jointly and severally liable for the above claims.

7. The result of the first instance of this lawsuit

The plaintiff Zhao Jizeng’s lawsuit was rejected.

No case acceptance fee will be charged in this case. The acceptance fee paid in advance by the plaintiff Zhao Jizeng is 1578314 yuan, which will be returned by the court after this ruling takes legal effect.

If you are not satisfied with this ruling, you may, within 10 days from the date of service of the ruling, submit a petition of appeal to this court, submit copies according to the number of the other party or representatives, and appeal to the higher people’s Court of Guangdong Province.

3、 Other undisclosed litigation and arbitration matters

As of the date of this announcement, the company had 11 other undisclosed litigation matters, involving a total amount of 139.0464 million yuan, accounting for 8.78% of the absolute value of the company’s latest audited net assets.

4、 Possible impact of the lawsuit announced this time on the company’s current profit or future profit

As the plaintiff’s lawsuit was rejected in the first instance of this case, the plaintiff is currently in the appeal stage, and the impact on the specific performance data cannot be judged. The final actual impact shall be subject to the court’s judgment. The subsequent company will timely perform the obligation of information disclosure on the progress of this lawsuit. Please pay attention to the investment risk.

5、 Information on major litigation

The loan is the personal behavior of Mr. Liang Jianfeng, the controlling shareholder and one of the actual controllers, and has nothing to do with the company. The company has not provided joint guarantee for the loan.

Due to the negligence of Mr. Liang Jianfeng’s personal behavior, he did not fully consider from the perspective of standardized governance and information disclosure of listed companies. After the company was jointly and severally sued, he failed to timely notify the listed company to perform the disclosure obligation, resulting in untimely information disclosure.

6、 Countermeasures to be taken

1. The board of directors of the company has requested Mr. Liang Jianfeng to conduct relevant self-examination and urge correction to avoid similar problems in the future;

2. Organize relevant personnel of the company to carry out compliance training, improve compliance awareness, and make timely and complete compliance information disclosure in accordance with regulatory requirements in terms of thought and action.

Mr. Liang Jianfeng, the company’s controlling shareholder and one of the actual controllers, apologized for the untimely disclosure of the above information. Please understand. The progress of subsequent relevant cases will be disclosed in a timely manner.

7、 Documents for future reference

1. Civil ruling.

Board of directors February 18, 2002

- Advertisment -