Securities code: 688697 securities abbreviation: Neway Cnc Equipment (Suzhou) Co.Ltd(688697) Announcement No.: 2022-001 Neway Cnc Equipment (Suzhou) Co.Ltd(688697) equipment (Suzhou) Co., Ltd
Announcement on the progress of 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 legal liabilities for the authenticity, accuracy and integrity of its contents according to law. Important content: the litigation stage of the case: the position of the listed company in the first instance: the amount involved by the defendant: 207164200 yuan and compensation for interest losses (based on 6204000 yuan, the interest calculated from March 26, 2014 to August 19, 2019 according to the benchmark interest rate of similar loans in the same period published by the people’s Bank of China and from August 20, 2019 to the date of actual performance according to the loan market quotation interest rate published by the national interbank lending center) The company has disclosed the basic information and early progress of the case in “section Xi, other important matters” of the prospectus for initial public offering of Neway Cnc Equipment (Suzhou) Co.Ltd(688697) equipment (Suzhou) Co., Ltd. and listing on the science and innovation board, which has been disclosed on the website of Shanghai Stock Exchange. Whether it will have a negative impact on the profits and losses of listed companies: as of the disclosure date of this announcement, this judgment is the result of civil judgment of first instance, and both parties to the case can appeal within the specified time limit,
If it is not the final result of implementation, the company will conduct corresponding accounting treatment according to the implementation of the case and the requirements of accounting standards, and its impact on the current or future profits and losses of the company shall be subject to the actual implementation result. 1、 Litigation overview (I) litigants
Plaintiff: Ningbo Huasheng Auto Parts Co., Ltd. (hereinafter referred to as “Ningbo Huasheng”) defendant: Neway Cnc Equipment (Suzhou) Co.Ltd(688697) equipment (Suzhou) Co., Ltd. (hereinafter referred to as “the company”) defendant: Ningbo BeiDouXing Machinery Co., Ltd. (hereinafter referred to as “Beidouxing”) (II) facts and reasons
On March 7, 2014, the company (as the seller), Ningbo Huasheng (as the buyer) and Beidou star (as the seller’s distributor) signed the equipment procurement contract, technical agreement, pre acceptance agreement and final acceptance agreement, and signed the supplementary agreement on May 14, 2015, It is agreed that Ningbo Huasheng will purchase four automation equipment production lines (hereinafter referred to as “equipment involved in the case”) from the company and Beidou star, with a total contract amount of 20.68 million yuan (including value-added tax). On March 26, 2014, Ningbo Huasheng paid an advance payment of 6.224 million yuan to Beidou star. The plaintiff held that the defendant failed to perform the obligations of delivery, installation and testing as agreed. In order to match the installation and commissioning of the equipment involved in the case, the plaintiff spent a lot of expenses. The defendant delayed the performance, and the production line was still in the commissioning stage, which not only delayed the production of the products on schedule, but also affected the normal performance of the plaintiff’s military products. The defendant’s breach of contract caused great harm to the plaintiff’s normal production and operation order and the company’s image and reputation. Based on the above situation
In addition, Ningbo Huasheng filed a lawsuit with Ningbo intermediate people’s Court of Zhejiang Province on October 27, 2020. (III) main claims
1. Cancel the equipment procurement contract, technical agreement, technical agreement, pre acceptance agreement and final acceptance agreement signed with the company and Beidou star;
2. The company and Beidou star refund the contract advance payment of 6204000 yuan paid by Ningbo Huasheng and compensate for the loss of interest (based on 6204000 yuan, the interest calculated from March 26, 2014 to August 19, 2019 according to the benchmark interest rate of similar loans in the same period published by the people’s Bank of China and from August 20, 2019 to the date of actual performance according to the loan market quotation interest rate published by the national interbank lending center);
3. The company and Beidou star compensate Ningbo Huasheng for the direct loss of 10960151.92 yuan and the loss of available interests of 190 million yuan [note];
4. The company and Beidou star shall dispose of the production line equipment stored in Ningbo Huasheng within a time limit, and the relevant expenses incurred shall be borne by the company and Beidou star;
5. The company and Beidou star shall bear the litigation costs of this case. [note] the original third claim was that the company and Beidou star compensated Ningbo Huasheng for the direct loss of 241131309.03 yuan and the loss of available interests of 350 million yuan. After that, the plaintiff changed and reduced the third claim. 2、 Litigation ruling
Recently, the company received the civil judgment issued by Ningbo intermediate people’s Court of Zhejiang Province ((2020) zhe 02 min Chu No. 1253), which is as follows:
1. Cancel the supplementary agreement on equipment procurement contract signed between Ningbo Huasheng and the company and Beidou star, as well as the technical agreement, pre acceptance agreement and final acceptance agreement signed between Ningbo Huasheng and the company;
2. The company and Beidou star shall return the advance payment of 6204000 yuan to Ningbo Huasheng within 10 days from the effective date of this judgment;
3. The company Beidou star shall compensate Ningbo Huasheng for the interest loss based on 6204000 yuan from March 26, 2014 to the date of performance determined in this judgment within 10 days from the effective date of this judgment (the interest loss before August 19, 2019 shall be calculated according to the loan benchmark interest rate published by the people’s Bank of China in the same period; after August 20, 2019, it shall be calculated according to the loan market quotation interest rate published by the national interbank lending center in the same period);
4. The company and Beidou star shall compensate Ningbo Huasheng for other economic losses of 1.5 million yuan within 10 days from the date of entry into force of this judgment;
5. The company and Beidou aircraft shall retrieve the equipment involved in the case within 60 days from the effective date of this judgment, and the relevant expenses related to demolition and retrieval shall be borne by the company and Beidou aircraft; Ningbo Huasheng shall provide necessary cooperation and assistance;
6. Reject other claims of Ningbo Huasheng;
7. The case acceptance fee and property preservation fee totaling 1091010 yuan shall be borne by the plaintiff Ningbo Huasheng, 1037223 yuan, and the defendant company and Beidou star shall jointly bear 53787 yuan. 3、 Impact of this lawsuit on the company
The case ruled to terminate the relevant contracts and agreements, and the defendant returned the advance payment, repaid the interest, compensated the economic loss of 1.5 million yuan and took back the equipment involved. The company has accrued an estimated liability of 7.8818 million yuan, the residual value of the equipment involved in the case and the residual recourse against the co defendant Beidou star. Based on the principle of prudence, since this case belongs to the judgment of first instance, both parties to the case can appeal within the specified time limit, which is not the final result of implementation. There is uncertainty in the final litigation and execution results, and the impact on the current or future profits and losses of the company shall be subject to the actual execution results.
The company will timely perform the obligation of information disclosure on the progress of the litigation matters announced in this announcement in accordance with the administrative measures for information disclosure of listed companies, the Listing Rules of science and Innovation Board of Shanghai Stock Exchange and other relevant provisions. Please pay attention to the investment risks.
It is hereby announced.
Board of directors of Neway Cnc Equipment (Suzhou) Co.Ltd(688697) equipment (Suzhou) Co., Ltd. January 13, 2022
