Announcement on the progress of major litigation
Securities code: 002656 securities abbreviation: Modern Avenue Announcement No.: 2021-144 Modern Avenue Group Co.Ltd(002656)
Announcement on the progress of major litigation
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.
Modern Avenue Group Co.Ltd(002656) (hereinafter referred to as “the company” and “modern group”) disclosed the announcement on the progress of major litigation (Announcement No.: 2021-114) on August 10, 2021. Guangzhou intermediate people’s Court of Guangdong Province (hereinafter referred to as “Guangzhou intermediate people’s court”) and Guangzhou Ligen small re loan Co., Ltd. (hereinafter referred to as “Ligen small loan”) Guangzhou Xingsheng Group Co., Ltd. (hereinafter referred to as “Xingsheng group”), Guangzhou Tianhe Lijia small loan Co., Ltd. (hereinafter referred to as “Lijia small loan”), Guangzhou Ruifeng Group Co., Ltd. (hereinafter referred to as “Ruifeng group”), Lin Yongfei, Yan Yanxiang, Weng Huayin, he Lin, Jiang dehu, yingweiwen, Han Ruiying, Weng Huacai Weng Yayun made a judgment of second instance in the case of loan contract dispute.
Recently, the company received the application for civil retrial from the higher people’s Court of Guangdong Province (hereinafter referred to as “Guangdong High Court”). The appellant Xingsheng group of the second instance refused to accept the civil judgment (2021) Yue 01 min Zhong No. 7597 made by the Guangzhou intermediate people’s court and applied to the Guangdong High Court for retrial. The Guangdong High Court has filed a case for review.
1、 Basic information of the case
On April 10, 2018, the plaintiff and Lijia small loan (defendant I) signed the maximum loan credit contract (Contract No.: s20180402). Ligen small loan agreed to provide Lijia small loan with the maximum loan credit of RMB 100 million. The actual loan amount was RMB 80 million, and the term was from April 10, 2018 to June 10, 2019. On April 10, 2018, Ruifeng group and Ligen small loan signed a maximum guarantee contract in the name of the company without authorization, which agreed that the company would provide joint and several liability guarantee for the relevant debts under the above maximum loan credit contract.
On December 30, 2020, Yuexiu District People’s Court of Guangzhou City, Guangdong Province (hereinafter referred to as “Yuexiu District Court”) issued a civil judgment numbered “(2019) Yue 0104 min Chu No. 34730” to sue Morgan for small loans
Announcement on the progress of major litigation
Deng group, Lijia small loan, Ruifeng group, Xingsheng group, Lin Yongfei, Weng Huayin, He Lin, Jiang dehu, yingweiwen, Han Ruiying, Weng Huacai and Weng Yayun made a judgment of first instance in the case of loan contract dispute, and ordered modern group to bear the liability of compensation to the plaintiff Lijin small loan for one-half of the debts that the defendant Lijia small loan could not pay off. For details, see the announcement on the progress of major litigation (2021-001) issued by the company on the designated information disclosure media on January 5, 2021. On January 13, 2021, moden group refused to accept the civil judgment of Yuexiu District Court (2019) Yue 0104 min Chu No. 34730 and appealed to Guangzhou intermediate people’s court according to law. The next day, the defendant Xingsheng group also appealed. For details, see the progress announcement on major litigation (Announcement No.: 2021-011) issued by the company in the designated information disclosure media on January 29, 2021 and February 5, 2021 Announcement on progress of major litigation (Announcement No.: 2021-016). On August 4, 2021, Guangzhou intermediate people’s Court issued (2021) Yue 01 min Zhong No. 7597 civil judgment, which ruled that modern group would not be liable for compensation in the second instance. For details, see the progress announcement on major litigation (Announcement No.: 2021-114) issued by the company on the designated information disclosure media on August 10, 2021.
2、 Basic information about Litigation
(i) Parties to litigation
Applicant for retrial (plaintiff of first instance and appellee of second instance): Guangzhou Xingsheng Group Co., Ltd
Legal representative: Jin Renyue.
Address: Floor 9, No. 249, science Avenue, Guangzhou high tech Industrial Development Zone.
Unified social credit Code: 91440101596197907n
Respondent (defendant of first instance and appellant of second instance): Modern Avenue Group Co.Ltd(002656)
Legal representative: Lin Yichao.
Address: No. 23, spectral Middle Road, Huangpu District, Guangzhou.
Unified social credit Code: 91440101739729668k
Defendant of first instance and appellee of second instance:
Guangzhou Ligen microfinance Co., Ltd
Legal representative: Chen Xiaojun.
Address: 1st, 2nd, 3rd and 4th floors, No. 270 Changdi Road, Yuexiu District, Guangzhou.
Announcement on the progress of major litigation
Unified social credit Code: 91440101080369886j defendant of first instance and appellee of second instance: Guangzhou Tianhe Lijia microfinance Co., Ltd. legal representative: Yan Yanxiang, chairman of the board. Address: room 2506, main tower office building, Guangzhou International Financial Center, No. 5, Zhujiang West Road, Tianhe District, Guangzhou. Unified social credit Code: 914401010589356695 defendant of first instance and appellee of second instance: Guangzhou Ruifeng Group Co., Ltd. legal representative: Weng Wuyou. Address: room 2506, main tower office building, Guangzhou International Financial Center, No. 5, Zhujiang West Road, Tianhe District, Guangzhou. The ID number of ID: 91440101677792193Y, the defendant of first instance and the appellant of second instance: Lin Yongfei, male, Han ID number: 350127********5310 first instance defendant, second instance appellant: Weng Hua Yin, male, Han ID number: 350127********5291 first instance defendant, two trial appellant: Angie Hou, male, Han identity card number: 350127********3936 defendant in first instance, ID number: 440121********0931 ID number: first instance defendant, second instance appellant: Han Ruiying, the ID number of Han nationality, 440102********3244, first instance defendant, second instance appellant: the female, Han nationality identity card number: 350181********2821 first instance defendant, second instance appellant: Weng Huacai, male. Han ID number: 350181********3958 first instance defendant, second instance appellant: Weng Yayun, female, Han ID number: 350127********5300
Announcement on the progress of major litigation
（2） Retrial request of Xingsheng group
1. Cancel item 2 of (2021) Yue 01 min Zhong No. 7597 civil judgment, and change the judgment that the respondent Modern Avenue Group Co.Ltd(002656) shall be jointly and severally liable for the failure of the defendant Guangzhou Tianhe Lijia microfinance Co., Ltd. in the first instance to pay off the debts determined in Items 1, 2 and 3 of (2019) Yue 0104 min Chu No. 34730 civil judgment;
2. The respondent Modern Avenue Group Co.Ltd(002656) is ordered to bear the litigation costs of retrial.
3、 Retrial verdict
As of the date of this announcement, the retrial has not been decided.
4、 Other undisclosed litigation and arbitration matters
The company and its subsidiaries have no other major litigation and arbitration matters that should be disclosed but have not been disclosed.
5、 Possible impact of litigation and arbitration in this announcement on the company’s profits in the current period or after the period
In the early stage, the company has reversed the estimated liabilities accrued in the early stage for the matters related to this case in the third quarter report of 2021 in accordance with the results of the second instance judgment and the provisions of the accounting standards. The company will continue to pay attention to the progress of the above matters, carry out corresponding accounting treatment, and timely fulfill the obligation of information disclosure. The information disclosure media designated by the company are China Securities Journal, securities times, securities daily and http://www.cn.info.com.cn, Please pay attention to relevant announcements and pay attention to investment risks.
6、 Documents for future reference
1. Application for civil retrial issued by the higher people’s Court of Guangdong Province.
Modern Avenue Group Co.Ltd(002656) board of directors December 31, 2021
