Securities code: Kingnet Network Co.Ltd(002517) securities abbreviation: Kingnet Network Co.Ltd(002517) Announcement No.: 2022004 Kingnet Network Co.Ltd(002517)
Announcement on the progress of litigation involving 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.
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The litigation stage of the case: Shanghai Higher People’s Court (hereinafter referred to as “Shanghai High Court”) accepted the second instance of legendary IP Co., Ltd. (hereinafter referred to as “legendary IP”) v. Shanghai Kingnet Network Co.Ltd(002517) (hereinafter referred to as “the company” and “the company”), a wholly-owned subsidiary of Kingnet Network Co.Ltd(002517) Technology Co., Ltd. (hereinafter referred to as “Shanghai Kaiying”) And a wholly-owned secondary subsidiary, Zhejiang Huanyou Network Technology Co., Ltd. (hereinafter referred to as “Zhejiang Huanyou”), a dispute over liability for damaging the interests of creditors of the company.
Appellant of this case (plaintiff of the original trial): legendary IP
Appellee of this case (defendant of the original trial): Shanghai Kaiying
Appellee of this case (the third person in the original trial): Zhejiang Huanyou
Recently, the company received the notice of response from Shanghai High Court [case No.: (2022) huminzhong No. 170], and now makes the following announcement on the relevant situation:
1、 Background information related to this case
Legend IP applied to Beijing No. 4 Intermediate People’s Court (hereinafter referred to as “Beijing No. 4 Intermediate People’s court”) for recognition and enforcement of the arbitration award No. 22593 / PTA made by the international arbitration court of the International Chamber of Commerce on May 22, 2019 in respect of the commercial dispute arbitration case between it and Zhejiang Huanyou, On September 16, 2019, Zhejiang Huanyou received the civil ruling [case No.: (2019) Jing 04 Xie Wai recognition No. 38] of Beijing Fourth intermediate people’s court, ruled to recognize and implement the arbitration award No. 22593 / PTA, and frozen the bank accounts of Zhejiang Huanyou and its branches in accordance with the enforcement ruling [case No.: (2019) Jing 04 recognition No. 172]. Since then, legend IP proposed to Beijing No. 4 Intermediate People’s court to add Shanghai Kaiying as the executee of (2019) Jing 04 No. 172 execution case. After being rejected by Beijing No. 4 Intermediate People’s court, it filed a lawsuit against execution to Beijing No. 4 Intermediate People’s court to apply for adding Shanghai Kaiying as the executee of (2019) Jing 04 No. 172 execution case. At present, the case has been applied for withdrawal of prosecution by legendary IP and has been approved by the fourth intermediate people’s Court of Beijing (see announcement: 2019075, 2019101, 2019121, 2019143, 2020021, 2020027, 2020036 and 2020137 for details).
On June 24, 2020, Shanghai Kaiying received the notice of response [case No.: (2020) Hu 01 min Chu No. 149] from Shanghai No. 1 Intermediate People’s Court (hereinafter referred to as “Shanghai No. 1 Intermediate People’s court”), and legendary IP filed a lawsuit against Shanghai No. 1 Intermediate People’s Court on the liability dispute of shareholders damaging the interests of creditors of the company, Request a judgment that Shanghai Kaiying shall bear joint and several liability for the failure to pay off the debts under the execution ruling of Zhejiang Huanyou (2019) Jing 04 Zhi No. 172 (temporarily RMB 50000000), and finally decide to freeze the equity of Zhejiang Jiuling Network Technology Co., Ltd. (hereinafter referred to as “Zhejiang Jiuling”) held by Shanghai Kaiying with a capital contribution of RMB 7368500; The equity has been applied for by Shanghai Kaiying and changed to RMB 50 million. As of the date of this announcement, the capital is still frozen (see Announcements: 2020079, 2020085 and 2020122 for details).
On January 25, 2021, Shanghai Kaiying received the application for change of claim [case No.: (2020) Hu 01 min Chu No. 149], and legendary IP applied to change the first claim in the original civil complaint, Namely: “I. Shanghai Kingnet Network Co.Ltd(002517) Technology Co., Ltd. is judged to be jointly and severally liable for the failure of Zhejiang Huanyou Network Technology Co., Ltd. to pay off its debts under the (2019) Jing 04 Zhi No. 172 execution ruling, temporarily totaling RMB 50 million”, Change to “I. judge Shanghai Kingnet Network Co.Ltd(002517) Technology Co., Ltd. to be jointly and severally liable for the debts of RMB 48112736373 that Zhejiang Huanyou Network Technology Co., Ltd. failed to pay off under the execution ruling (2019) Jing 04 Zhi No. 172”. For details, please refer to the announcement on the progress of litigation involving subsidiaries (Announcement No.: 2021016) disclosed by the company on January 27, 2021.
On February 10, 2021, the company inquired about the freezing of Shanghai Kaiying’s bank account. For details, see the announcement on the progress of litigation involving subsidiaries (Announcement No.: 2021019).
On March 11, 2021, Shanghai Kaiying received the civil ruling of Shanghai No. 1 Intermediate People’s Court [case No.: (2020) Hu 01 min Chu No. 149-4], and ruled to freeze the deposit of RMB 43112736373 in Shanghai Kaiying bank or seal up and detain other equivalent properties. (the time limit for freezing bank deposits shall not exceed one year, the time limit for sealing up and seizing movable property shall not exceed two years, and the time limit for sealing up real property and freezing other property rights shall not exceed three years. If there are other provisions in laws and judicial interpretations, such provisions shall prevail.) For details, please refer to the announcement on the progress of litigation involving subsidiaries (Announcement No.: 2021021).
On December 22, 2021, the company disclosed the announcement on the progress of litigation involving subsidiaries (Announcement No.: 2021085), and Shanghai Kaiying received the civil judgment of Shanghai No. 1 Intermediate People’s Court [case No.: (2020) Shanghai
01 [min Chu No. 149], the judgment rejected all the claims of the plaintiff Co., Ltd. The case acceptance fee of 244743682 yuan and the preservation fee of 5000 yuan shall be borne by the plaintiff.
2、 Progress of the case
Recently, the company received the notice of response from the Shanghai High Court [case No.: (2022) huminzhong No. 170], and the Shanghai High Court has officially accepted the case of legendary IP v. Shanghai Kaiying and Zhejiang Huanyou’s liability dispute for damaging the interests of creditors of the company. Legend IP requested to revoke the judgment of the first instance, change the judgment according to law, support the appellant’s claim, and request Shanghai Kaiying to bear all the litigation costs of the first and second instance of the case.
3、 Other major litigation and arbitration matters
As of the date of this announcement, the company has no other major litigation and arbitration matters that should be disclosed but have not been disclosed. For the minor litigation and arbitration matters of the company (including holding subsidiaries), see Section VI important matters VIII, litigation matters and section x financial report XIV, commitments and contingencies 2, contingencies (1) important contingencies existing on the balance sheet date disclosed on August 21, 2021.
4、 Impact on Listed Companies
For the appeal filed by legendary IP, the company will actively respond to the lawsuit and effectively safeguard the legitimate rights and interests of the company; The company will continue to take positive measures to resolutely safeguard the interests of the company and its shareholders for the malicious acts such as repeated litigation and excessive preservation implemented by legendary IP in the early stage. The subsequent company will perform the obligation of information disclosure according to the progress of the above matters. Please invest rationally and pay attention to investment risks.
5、 Documents for future reference
Notice of response of Shanghai Higher People’s Court [(2022) HMZ No. 170].
It is hereby announced.
Kingnet Network Co.Ltd(002517) board of directors March 3, 2022
