Stock Code: 600116 stock abbreviation: Chongqing Three Gorges Water Conservancy And Electric Power Co.Ltd(600116) No.: Lin 2022-005 Chongqing Chongqing Three Gorges Water Conservancy And Electric Power Co.Ltd(600116) power (Group) Co., Ltd
Announcement on the results of the first instance judgment of the subordinate companies involved in litigation
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
The litigation stage of the case: Chongqing Wujiang Industrial Group Trading Co., Ltd. (hereinafter referred to as “Wujiang trading company”), a wholly-owned subsidiary of Chongqing Chongqing Three Gorges Water Conservancy And Electric Power Co.Ltd(600116) electric power group (Co., Ltd.); Xiushan Jiayuan Mining Co., Ltd. (hereinafter referred to as “Jiayuan mining”) and the joint and several liable persons Wu Hecai, Zhang Lirong The loan contract dispute case between Wu Qi is currently in the first instance judgment stage (not yet effective), and the parties to the case can appeal within the specified time limit.
The party status of the listed company: Wujiang trading company is the plaintiff.
Amount involved in the case: the loan principal and interest are 113.1237 million yuan, as well as the relevant penalty interest, compound interest, litigation fees, preservation fees, etc. involved in the case.
Impact on the profits and losses of listed companies: as the lawsuit is in the first instance judgment stage (not yet effective), the parties to the case can appeal within the specified time limit. There are uncertainties in the final judgment result and implementation of the case, and it is not possible to judge its specific impact on the company’s performance at present. From the date of prosecution to the date of disclosure of this announcement, Jiayuan mining has repaid the principal of RMB 50.0189 million and all interests of RMB 2.1655 million, and the remaining outstanding loan principal is RMB 62.1019 million; Based on the principle of prudence, as of December 31, 2021, the company has withdrawn 46 million yuan of bad debt reserves for relevant receivables involved in this case. There is uncertainty in the recovery of the remaining receivables involved in this lawsuit, which may have a certain impact on the performance of the company in 2022.
1、 Basic information of the early stage of this lawsuit
Wujiang trading company filed a lawsuit with Chongqing No. 4 Intermediate People’s Court on the dispute over the loan contract with Jiayuan mining and the joint and several liable persons Wu Hecai, Zhang Lirong and Wu Qi on September 18, 2021, and received the notice of accepting the case ([2021] Yu 04 min Chu No. 466) served by Chongqing No. 4 Intermediate People’s Court on September 29, 2021.
(Contract No.: jt170031), maximum mortgage contract (Contract No.: jt170032) and chattel mortgage contract (Contract No.: jt170034). Contract agreement: 1 Wujiang trading company provides Jiayuan mining with a loan of RMB 24 million (paid as agreed), the loan term is 5 years, and the loan interest rate is 6% per annum. During the loan period, if the benchmark loan interest rate of the people’s Bank of China for more than five years is adjusted up and down, The loan interest rate will be adjusted according to the absolute value of up and down adjustment from the first day of the next month (if the annual interest rate is lower than 6% after adjustment, it will be implemented according to 6%, and the unadjusted part will not be included in the next adjustment). Jiayuan mining is mortgaged by its mining right, machinery and equipment of Jiayuan manganese mine. If Jiayuan mining violates the contract, Wujiang trading company has the right to require Jiayuan mining to repay all the loan principal and interest under the contract in advance. If Jiayuan mining fails to repay on schedule, it shall pay penalty interest on all the outstanding loan principal. For the loan interest that cannot be paid on time by Jiayuan company, compound interest shall be calculated and charged according to the penalty interest rate. Jiayuan mining shall bear all the expenses of Wujiang trading company for realizing the creditor’s rights and corresponding security rights; 2. Jiayuan mining takes its Jiayuan manganese mining right (mining license No.: c500000201102130120335) as collateral to provide Wujiang trading company with the maximum mortgage guarantee for a series of creditor’s rights of Jiayuan mining. The maximum amount of creditor’s rights guaranteed is 321725400 yuan, and the guarantee scope includes creditor’s rights principal, interest (including penalty interest and compound interest), liquidated damages Compensation for losses and all expenses paid by Wujiang trading company to realize its creditor’s rights, and handled the mortgage registration of mining right; 3. Jiayuan mining takes all its elevators, non explosion-proof rock drilling jumbos, non explosion-proof crawler bucket loaders and other equipment as collateral to guarantee the aforementioned loan contract. The scope of guarantee includes the loan of RMB 24 million under the loan contract, interest, liquidated damages, compensation for losses and all expenses for realizing creditor’s rights, and has handled the registration of chattel pledge. At the same time, the defendants Wu Hecai, Zhang Lirong and Wu Qi signed the joint and several liability guarantee and promised that they would voluntarily provide joint and several liability guarantee for the loan principal, interest and liquidated damages owed by Jiayuan mining. Affected by the manganese related policies in Xiushan area of Chongqing, there is uncertainty in the sustainable operation of Jiayuan mining, which may have a significant adverse impact on the performance of repayment obligations. In order to protect its own rights and interests, Wujiang trading company sent the notice of early maturity of loan to each defendant on September 16, 2021 in accordance with the loan contract, Declare that the principal and interest of the loan under the loan contract are due immediately and require it to repay the money immediately. As of September 17, 2021, under the above loan contract, the defendant Jiayuan mining still owed the loan principal of 112.1208 million yuan and interest of 1.029 million yuan.
The litigation claims of Wujiang trading company are as follows:
1. Request to order the defendant Jiayuan mining to immediately repay the loan principal of RMB 112.1208 million to the plaintiff Wujiang trading company;
2. Request to order the defendant Jiayuan mining to immediately repay the plaintiff Wujiang trading company as of September 17, 2021
3. Request to order the defendant Jiayuan mining to immediately repay the penalty interest to the plaintiff Wujiang trading company. The penalty interest is calculated from September 18, 2021 to the date of payment of the principal based on the unpaid loan principal of 112.1208 million yuan and the standard of 50% increase in the loan interest rate (i.e. annual interest rate of 9%);
4. Request to order the defendant Jiayuan mining to immediately repay the compound interest to the plaintiff Wujiang trading company. The compound interest is calculated from September 18, 2021 to the date when the interest is paid, based on the unpaid loan interest of RMB 1.029 million, and the compound interest is calculated according to the standard of 50% (i.e. the annual interest rate is 9%);
5. Request to order the defendant Jiayuan mining to immediately pay 150000 yuan of lawyer’s fees incurred due to the realization of creditor’s rights to the plaintiff Wujiang trading company;
6. The litigation fee, preservation fee and preservation guarantee fee (if any) of the case shall be borne by the defendant Jiayuan mining;
7. Request that the defendants Wu Hecai, Zhang Lirong and Wu Qi be ordered to bear joint and several liability for paying off the above-mentioned creditor’s rights from item 1 to Item 6;
8. Request that the plaintiff Wujiang trading company, within the scope of the first to sixth claims mentioned above, be ordered to have the priority to be paid for the proceeds from the auction, sale or discount of the collateral provided by the defendant Jiayuan mining (Jiayuan manganese mining right, mining license No.: c5000002111021335);
9. Request to order the plaintiff Wujiang trading company to enjoy the priority right to be paid for the proceeds from the auction, sale or discount of movable property collateral (34 categories and 88 pieces of machinery and equipment) provided by the defendant Jiayuan mining within the scope of the above claims from item 1 to Item 6.
The above contents are detailed in the announcement on litigation involving subordinate companies (Lin 2021-049) disclosed by the company on the website of Shanghai Stock Exchange on September 30, 2021.
2、 Results of the first instance judgment of this litigation case
The case has been heard in court. Wujiang trading company recently received the civil judgment ([2021] Yu 04 min Chu No. 466) served by Chongqing No. 4 Intermediate People’s court. The judgment is as follows:
1. The defendant Jiayuan mining immediately repaid the plaintiff Wujiang trading company the loan principal of 112.1208 million yuan as of September 17, 2021;
2. The defendant Jiayuan mining immediately repaid the plaintiff Wujiang trading company the loan interest of RMB 1.029 million as of September 17, 2021;
3. The defendant Jiayuan mining repaid the penalty interest to the plaintiff Wujiang trading company. The penalty interest is calculated from September 18, 2021 to the date of payment of the principal, based on the unpaid loan principal of 112.1208 million yuan and the standard of 50% increase in the loan interest rate (i.e. annual interest rate of 9%);
4. The defendant Jiayuan mining immediately repaid the compound interest to the plaintiff Wujiang trading company. The compound interest was calculated from September 18, 2021 to the date of interest payment based on the unpaid loan interest of RMB 1.029 million and according to the standard of 50% (i.e. annual interest rate of 9%). The interest was paid off with the principal;
5. The defendant Jiayuan mining immediately paid the plaintiff Wujiang trading company 150000 yuan of lawyer’s fee, 5000 yuan of preservation fee and 565600 yuan of preservation guarantee fee arising from the realization of creditor’s rights;
6. Within the scope of the first to fifth claims mentioned above, the plaintiff Wujiang trading company has the priority right to be paid for the proceeds from the auction, sale or discount of the mortgage of the defendant Jiayuan mining (Jiayuan manganese mining right, mining license No.: c500000201102130120335) (with the limit of 321725400 yuan);
7. Within the scope of creditor’s rights in Items 1 to 5 above, the plaintiff Wujiang trading company has the priority right to be repaid with the proceeds from the auction, sale or discount of 7 million shares and 1 million shares of Jiayuan mining (100% equity) held by the defendants Wu Hecai and Zhang Lirong (with the limit of 290 million yuan);
8. The plaintiff Wujiang trading company, within the scope of the creditor’s rights in Items 1 to 5 above, has the priority to be paid for the proceeds from the auction, sale or discount of the chattel collateral provided by the defendant Jiayuan mining;
9. The defendants Wu Hecai, Zhang Lirong and Wu Qi shall be jointly and severally liable for the repayment of the above claims from item 1 to item 5; If the defendant fails to perform the above money payment obligations within the period specified in this judgment, he shall double the debt interest during the period of delayed performance in accordance with Article 253 of the Civil Procedure Law of the people’s Republic of China.
The case acceptance fee of 608168.4 yuan shall be borne by the defendants Jiayuan mining, Wu Hecai, Zhang Lirong and Wu Qi.
If you are not satisfied with this judgment, you can submit a petition to this court within 15 days from the date of service of the judgment, and submit copies according to the number of the other party or representative, and appeal to the Chongqing Higher People’s court.
3、 Impact on current profit of the company
(I) as the lawsuit is in the first instance judgment stage (not yet effective), the parties to the case can appeal within the specified time limit. There are uncertainties in the final judgment result and execution of the case, and it is not possible to judge its specific impact on the company’s performance at present.
(II) from the date of prosecution to the date of disclosure of this announcement, Jiayuan mining has repaid the principal of RMB 50.0189 million and all interest of RMB 2.1655 million, and the remaining outstanding loan principal is RMB 62.1019 million. Based on the principle of prudence, as of December 31, 2021, the company has withdrawn 46 million yuan of bad debt reserves for relevant receivables involved in this case.
(III) there is uncertainty in the recovery of the remaining receivables involved in this lawsuit, which may have a certain impact on the performance of the company in 2022. The follow-up company will timely perform the obligation of information disclosure on the progress of this litigation in accordance with the stock listing rules of Shanghai Stock Exchange and other relevant provisions. Please pay attention to the investment risks.
It is hereby announced.
Board of directors of Chongqing Chongqing Three Gorges Water Conservancy And Electric Power Co.Ltd(600116) electric power (Group) Co., Ltd
February 24, 2002
