Securities code: 002427 securities abbreviation: St Yufu Announcement No.: 2021-078 Zhejiang Unifull Industrial Fibre Co.Ltd(002427)
Announcement on progress of arbitration and 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.
Recently, Zhejiang Unifull Industrial Fibre Co.Ltd(002427) (hereinafter referred to as “the company”) has received the award (2019) hzyz No. 3849 issued by Shanghai Arbitration Commission and the civil judgment (2021) Su 12 min Chu No. 28 issued by Taizhou intermediate people’s Court of Jiangsu Province. Now the relevant information is announced as follows: I. basic information of arbitration and litigation
1、 On October 25, 2019, Jiangsu Zhihang new energy Co., Ltd. (hereinafter referred to as “Zhihang new energy”) ）From 2016 to 2018, Zhou Fazhang, as the respondent, filed an arbitration application with the Shanghai Arbitration Commission, requesting an award that Zhou Fazhang paid the performance compensation of RMB 1009.8 million to the company and liquidated damages for delaying the performance compensation payment obligation, and Zhou Fazhang borne the arbitration expenses of the case. The Shanghai Arbitration Commission accepted the arbitration application on November 7, 2019. For details, see the announcement on filing arbitration issued by the company on the designated information disclosure media on November 12, 2019 (Announcement No.: 2019-139). 2. Jiangsu Taizhou Rural Commercial Bank Co., Ltd. filed a lawsuit with Taizhou intermediate people’s Court of Jiangsu Province for financial loan contract dispute with Zhihang new energy and related co defendants, requesting that Zhihang new energy repay the loan principal of RMB 100 million and pay relevant interest, and the related co defendants bear joint and several liability for repayment. Specific contents: For details, see the announcement on litigation involved (Announcement No.: 2021-038) issued by the company on the designated information disclosure media on May 12, 2021.
2、 Progress of arbitration and litigation
(i) Main contents of the award of Shanghai Arbitration Commission
The arbitration tribunal held that the operating profit of Zhihang new energy in 2017 failed to reach the amount of performance commitment, and the respondent Zhou Fazhang should bear full responsibility for this. For the failure of Zhihang new energy’s business performance in 2018 to meet the performance commitment target, the applicant and the respondent bear 50% of the responsibility respectively. It can be calculated that the performance commitment compensation that the respondent Zhou Fazhang should bear is RMB 763613133. At the same time, Based on the agreement between Zhou Fazhang and Shanghai yaokuo enterprise management center (limited partnership), Shanghai yaokuo will directly pay 45 million yuan of the debt transfer to the account of Yufu shares as the corresponding amount paid by Zhou Fazhang to Yufu shares (i.e. 45 million yuan), the applicant has received 341958688.45 yuan of performance compensation, and the remaining 100 million yuan shall be claimed by the applicant directly to Shanghai yaokuo. Therefore, the arbitration tribunal decided that the remaining compensation of 313613133 yuan shall be paid directly to the applicant by the respondent Zhou Fazhang.
In accordance with the relevant provisions of the arbitration rules of Shanghai Arbitration Commission, the arbitration tribunal ruled as follows:
1. The respondent Zhou Fazhang shall pay the performance commitment compensation of RMB 313613133 to the applicant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) within 30 days from the effective date of this award;
2. The respondent Zhou Fazhang shall, within 30 days from the effective date of this ruling, pay the applicant Zhejiang Youfu high tech fiber Co., Ltd. liquidated damages of RMB 21290842.74 for delayed performance compensation;
3. Zhou Fazhang, the respondent, shall pay liquidated damages to the applicant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) for delay in performance compensation payment within 30 days from the effective date of this award. The calculation method of liquidated damages is: Based on RMB 313613133, calculated according to the three ten thousandth standard per day, from April 22, 2019 to the actual payment date;
4、 The arbitration fee in this case is RMB 5933292 (already paid in advance by the applicant), of which the applicant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) shall bear RMB 1186658.40, and the respondent Zhou Fazhang shall bear RMB 4746633.60. The respondent Zhou Fazhang shall pay the applicant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) within 30 days from the effective date of this award The arbitration fee is 4746633.60 yuan. This award is final and takes effect from the date of making.
（2） Main contents of civil judgment of Taizhou intermediate people’s Court of Jiangsu Province
In accordance with the relevant provisions of the civil code of the people’s Republic of China and the Civil Procedure Law of the people’s Republic of China, the intermediate people’s Court of Taizhou City, Jiangsu Province made the following judgment:
1. The defendant Jiangsu Zhihang new energy Co., Ltd. shall repay the plaintiff Jiangsu Taizhou Rural Commercial Bank Co., Ltd. the loan principal of RMB 100 million within 15 days after the effectiveness of this judgment The interest is 4700581.63 yuan (as of March 31, 2021) and the relevant interest agreed in the contract from April 1, 2021 to the date of actual payment. 2. The defendant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) , Huzhou Youfu Holding Co., Ltd., Shanghai Youhang New Energy Technology Co., Ltd. and Zhou Fazhang are jointly and severally liable for the above debts of the defendant Jiangsu Zhihang new energy Co., Ltd.; the defendant Zhejiang Unifull Industrial Fibre Co.Ltd(002427) , Huzhou Youfu Holding Co., Ltd., Shanghai Youhang New Energy Technology Co., Ltd. and Zhou Fazhang have the right to recover from the defendant Jiangsu Zhihang new energy Co., Ltd.
If the obligation to pay money is not performed within the period specified in this judgment, the debt interest during the period of delayed performance shall be doubled in accordance with Article 253 of the Civil Procedure Law of the people’s Republic of China. The case acceptance fee of 565303 yuan and the preservation fee of 5000 yuan shall be borne by the defendants Jiangsu Zhihang new energy Co., Ltd. Zhejiang Unifull Industrial Fibre Co.Ltd(002427) , Huzhou Youfu Holding Co., Ltd., Shanghai Youhang New Energy Technology Co., Ltd. and Zhou Fazhang. If you are not satisfied with this judgment, you may submit a petition of appeal to this court within 15 days from the date of service of the judgment, submit copies according to the number of opposite parties or representatives, and appeal to the higher people’s Court of Jiangsu Province. 3、 Does the company have any other undisclosed litigation and arbitration matters
As of the date of this announcement, the company and its holding subsidiaries have no other litigation and arbitration matters that should be disclosed but have not been disclosed. After obtaining other litigation and arbitration related documents, the company will timely perform the obligation of information disclosure. 4、 Possible impact of this progress on the company’s current profit or future profit
1. For the performance compensation amount of RMB 1009.8 million requested by the company, Except for the 45 million yuan agreed in the agreement between Zhou Fazhang and Shanghai yaokuo enterprise management center (limited partnership), other contingent consideration companies are not recognized as assets. If Zhou Fazhang strictly follows the award Fulfilling the payment obligation to the company will have a positive impact on the company’s profits in the current period or after the period, which shall be subject to the performance compensation actually paid by Zhou Fazhang to the company. The company will continue to pay attention to the follow-up progress of this arbitration and timely perform the obligation of information disclosure in accordance with relevant regulations and normative documents.
2. The loan of Zhihang new energy from Jiangsu Taizhou Rural Commercial Bank Co., Ltd. belongs to on balance sheet loan, and the relevant unpaid interest has been fully accrued by the company. This judgment will not have a significant impact on the company’s current or future profits.
5、 Documents for future reference
1. Award of Shanghai Arbitration Commission (2019) Hz No. 3849
2. Civil judgment of Taizhou intermediate people’s Court of Jiangsu Province (2021) Su 12 min Chu No. 28
It is hereby announced
Zhejiang Unifull Industrial Fibre Co.Ltd(002427) board of directors December 28, 2021
