Announcement on the progress of major litigation
Securities code: 002656 securities abbreviation: Modern Avenue Announcement No.: 2022-003 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”) recently received the civil ruling numbered “(2021 yueminshen No. 13424)” issued by the higher people’s Court of Guangdong Province (hereinafter referred to as “Guangdong High Court”), in respect of 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”) made a ruling on the retrial application as follows:
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 modern group, Lijia small loan, Ruifeng group, Xingsheng group, Lin Yongfei, Weng Huayin, He Lin, Jiang dehu, yingweiwen, Han Ruiying, Weng Huacai Weng Yayun made a judgment of first instance in the case of loan contract dispute, and ordered modern group to assume compensation liability to the plaintiff Ligen small loan for 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.
Announcement on the progress of major litigation
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.
The company disclosed the progress announcement on major litigation (Announcement No.: 2021-137) and the progress announcement on major litigation (Announcement No.: 2021-144) on November 9, 2021 and December 31, 2021 respectively. Ligen xiaodai and Xingsheng group refused to accept the civil judgment (2021) Yue 01 min Zhong No. 7597 made by Guangzhou intermediate people’s court and applied to Guangdong High Court for retrial.
2、 Basic information about Litigation
(I) litigants
Retrial applicant (plaintiff of first instance and appellee of second instance): legal representative of Guangzhou Ligen microfinance Co., Ltd.: Chen Xiaojun.
Address: 1st, 2nd, 3rd and 4th floors, No. 270 Changdi Road, Yuexiu District, Guangzhou.
Unified social credit Code: 91440101080369886j
Retrial applicant (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: Guangzhou Tianhe Lijia microfinance Co., Ltd
Announcement on the progress of major litigation
Legal representative: Yan Yanxiang, chairman.
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: 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.
Unified social credit Code: 91440101677792193y
Defendant of first instance: Lin Yongfei, male, Han nationality
ID number: 350127********5310
Defendant of first instance: Weng Huayin, male, Han nationality
ID number: 350127********5291
Defendant of first instance: He Lin, male, Han nationality
ID number: 350127********3936
Defendant of first instance: Jiang dehu, male, Han nationality
ID number: 440121********0931
Defendant of first instance: Ying Weiwen, female, Han nationality
ID number: 440102********3244
Defendant of first instance: Han Ruiying, female, Han nationality
ID number: 350181********2821
Defendant of first instance: Weng Huacai, male, Han nationality
ID number: 350181********3958
Defendant of first instance: Weng Yayun, female, Han nationality
ID number: 350127********5300
(II) reexamination request of Ligen small loan
Request for retrial according to law, revoke the second judgment of Guangzhou intermediate people’s Court (2021) Yue 01 min Zhong No. 7597 civil judgment, and change the judgment to maintain the corresponding content of the first instance judgment of Guangzhou Yuexiu District People’s court, that is, the respondent shall be liable for compensation to the applicant for retrial against half of jiaxiaodai’s debts.
Announcement on the progress of major litigation
(III) 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
The retrial applications of Guangzhou Ligen microfinance Co., Ltd. and Guangzhou Xingsheng Group Co., Ltd. were rejected. 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 cninfo (www.cn. Info. Com. CN), Please pay attention to relevant announcements and pay attention to investment risks.
6、 Documents for future reference
1. Civil ruling of Guangdong Higher People’s court.
Modern Avenue Group Co.Ltd(002656) board of directors January 17, 2022
