Securities code: 002583 securities abbreviation: Hytera Communications Corporation Limited(002583) Announcement No.: 2022-005 Hytera Communications Corporation Limited(002583)
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.
In order to meet the challenges brought by the judgment of trade secret and copyright infringement litigation cases (hereinafter referred to as “trade secret litigation”) with Motorola solutions Inc. (hereinafter referred to as “Motorola”) and Motorola Malaysia, more effectively protect the company’s business in the United States and effectively protect the legitimate rights and interests of the company’s employees and customers, Hytera America, Inc. (hereinafter referred to as “Meidong company”), hytera communications America (West), Inc. (hereinafter referred to as “Meixi company”) and hyt North America, the three subsidiaries (grandchildren) of Hytera Communications Corporation Limited(002583) (hereinafter referred to as “the company”) in the United States, Inc. (the three companies hereinafter collectively referred to as “U.S. subsidiaries”) voluntarily applied for bankruptcy reorganization to the central bankruptcy court of California (hereinafter referred to as “central bankruptcy court of California” or “court”) in May 2020 in accordance with Chapter XI of the U.S. bankruptcy code. At the same time, the company has ensured the normal development of business in the United States through business and asset restructuring and new channel construction.
In October 2021, the bankruptcy reorganization administrator (hereinafter referred to as the “Administrator”) hired by the company submitted the draft liquidation plan to the bankruptcy court of central California. The draft liquidation plan will be implemented after group voting, hearing, court ruling and other procedures of all creditors and meeting the conditions for the effectiveness of the liquidation plan.
On January 20, 2022 local time (January 21, 2022 Beijing time), the administrator submitted the voting results of all creditors on the draft liquidation plan to the bankruptcy court of central California. The draft has been voted by all creditors, and the subsequent court will rule on the draft liquidation plan according to the voting results.
As of the date of this announcement, other pending motions submitted in the first instance of the trade secret and copyright infringement lawsuit between the company and Motorola are still in the process of hearing by the court of first instance. The company filed an appeal to the United States Seventh Circuit Court of appeal on September 8, 2021, and the case entered the appeal stage at the same time.
The relevant contents and progress of the above cases are detailed in the 2019 annual report disclosed by the company on April 30, 2020
Report and “section V important matters” of the 2020 semi annual report disclosed on August 28, 2020, and the company’s statements on February 17, 2020, March 9, 2020, December 21, 2020, January 12, 2021, August 14, 2021, September 9, 2021 The announcement on the progress of major litigation and the announcement on the progress of major litigation and the company’s appeal issued through the designated information disclosure media on October 18, 2021. At present, the company’s production and operation are normal. The local bankruptcy and reorganization of the U.S. subsidiary will not have a significant impact on the company’s U.S. business and normal production and operation. The company’s business in the United States will remain stable in 2021, and its revenue is basically flat year-on-year. If the liquidation plan is implemented normally, it is expected to affect the company’s net profit of about – 190 million yuan in 2021. The above impact amount is the preliminary calculation data, which has not been audited, and the final result shall be subject to the implementation result of the liquidation plan and the audit result. The company has no other major litigation and arbitration matters that should be disclosed but not disclosed. In the future, the company will pay close attention to the follow-up progress of litigation matters and timely fulfill the obligation of information disclosure by means of interim report / periodic report. Please make careful decisions and pay attention to investment risks.
It is hereby announced.
Hytera Communications Corporation Limited(002583) board of directors January 21, 2022
