Stock abbreviation: Shanxi Securities Co.Ltd(002500) Stock Code: 002500 No.: pro 2022-001 Shanxi Securities Co.Ltd(002500)
Announcement on litigation involving holding 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.
Special tips:
1. The litigation stage of the case: first instance, not yet in session
2. Party status of the listed company: Shanxi Securities Co.Ltd(002500) holding subsidiary Zhongde Securities Co., Ltd. is one of the 21 defendants and is required to bear joint and several liability for compensation
3. Amount involved: 4571357198 yuan
4. Impact on the profits and losses of listed companies: since the case has not been heard, it is impossible to judge the impact on the company’s profits in the current period or after the period.
On January 13, 2022, Zhongde Securities Co., Ltd. (hereinafter referred to as “Zhongde securities”), a holding subsidiary of Shanxi Securities Co.Ltd(002500) (hereinafter referred to as “the company”), received a civil complaint served by the Beijing Financial court. The cause of action was a dispute over the liability for Securities Misrepresentation. Two thousand plaintiffs such as Shanghai Junying asset management partnership (limited partnership) filed a civil lawsuit against LETV information technology (Beijing) Co., Ltd. (hereinafter referred to as “LETV”) and other 21 defendants in the Beijing Financial court, asking LETV to compensate for the investment losses caused by its false statements, totaling 4571357198 yuan, The other 20 defendants are required to bear joint and several liability for compensation.
The relevant information is hereby announced as follows:
1、 Basic information about the case
(I) litigants
Plaintiff: 2000 persons including Shanghai Junying asset management partnership (limited partnership)
Litigation representatives: Wang Jing, Liu Guoliang, Lu Ming
The plaintiffs jointly entrust litigation agents: Zang Xiaoli and Liu Yun, lawyers of Beijing Shize law firm; Song Yixin, Li Hao, lawyer of Shanghai hanlian law firm
Defendant: this lawsuit involves 14 natural persons such as LETV and Jia Yueting, 3 securities companies such as Sino German securities and 3 accounting firms
(II) facts and reasons of litigation
On April 2, 2021, the China Securities Regulatory Commission issued the decision on administrative punishment ([2021] No. 16), which determined that LETV had violated laws and regulations, and imposed administrative penalties on LETV, Jia Yueting and other 14 natural persons.
In this lawsuit, the plaintiff, as an investor of LETV, held that LETV’s misrepresentation caused damage to its rights and interests, and asked LETV to bear civil liability for misrepresentation infringement; Jia Yueting and other 14 natural persons shall be jointly and severally liable for false statements; Three securities companies including Sino German securities and three accounting firms are jointly and severally liable for failure to exercise due diligence and fail to find the financial fraud of LETV.
(III) claims
1. I told you to order LETV to pay the plaintiff infringement compensation for investment losses caused by false statements (including investment balance loss, stamp duty, commission and interest), totaling 4571357198 yuan;
2. The plaintiff told us to order the other 20 defendants except LETV to bear joint and several liability for the above losses of the plaintiff;
3. The plaintiff requested that the defendant be ordered to jointly bear all litigation costs of the case.
2、 Judgement
The above-mentioned cases have not yet been heard and have not yet been adjudicated.
3、 Briefly explain whether there are other undisclosed litigation and arbitration matters
As of the disclosure date, the company (including the holding company) has no other major litigation and arbitration matters that should be disclosed but not disclosed.
4、 Possible impact of the lawsuit announced this time on the company’s current profits or future profits
Since the above-mentioned cases have not been heard in court, there is uncertainty about their impact on the company’s profits in the current period or after the period. The company will timely perform the obligation of information disclosure on the progress of litigation matters. Please pay attention to the investment risks.
It is hereby announced
Shanxi Securities Co.Ltd(002500) board of directors
January 17, 2022
