St Gaosheng (000971): Receiving Judgment And Litigation Progress

Stock Code: 000971 stock abbreviation: St Gaosheng Announcement No.: 2021-37

Gaosheng Holding Co., Ltd

Notice of proceedings

The company and all members of the board of directors guarantee that the information disclosure content is true, accurate and complete, and there are no false records, misleading statements or major omissions.

Gaosheng Holding Co., Ltd. (hereinafter referred to as "the company") recently received the (2020) zminzhong No. 645 civil judgment issued by Zhejiang Higher People's court. The relevant matters are hereby announced as follows:

1、 Basic information of the case

On January 9, 2018, the then chairman of the board of directors used the seal in violation of regulations, causing the company to cooperate with Beijing Yuchi Ruide Investment Co., Ltd. (hereinafter referred to as "Yuchi Ruide"), landing industry (Hubei) Co., Ltd. (hereinafter referred to as "landing industry"), Beijing Huaxi Yunyou Cultural Industry Co., Ltd. (hereinafter referred to as "Huaxi Yunyou") Wei Junkang and others jointly signed the "maximum guaranteed loan contract" with Zhu Kaibo. The loan amount agreed in the loan contract is 25000000.00 yuan. The loan period is from January 10, 2018 to April 9, 2018, and the loan interest rate is 36% per year. The actual user of the above loan is yuchiread.

The plaintiff Zhu Kaibo filed a lawsuit against the company and other relevant parties as the defendant, and Hangzhou intermediate people's Court of Zhejiang Province (hereinafter referred to as "Hangzhou intermediate court") filed the case on June 8, 2018. As Yuchi Ruide, Lanting industry and Huaxi Yunyou entered bankruptcy proceedings, Hangzhou intermediate court ruled to suspend the lawsuit on September 18, 2019. The hearing will resume on November 21, 2019 after the three companies are taken over by the managers.

Hangzhou intermediate people's Court issued (2018) ZH01 minchu No. 1520 civil judgment in 2020, and the first instance judgment results of Zhu Kaibo case are as follows:

(1) the loan contract involved in Zhu Kaibo case is invalid.

(2) Gaosheng holdings, Yuchi Ruide, Lanting industry, Huaxi Yunyou and Wei Junkang are responsible for returning the loan principal and compensating for the loss to Zhu Kaibo, confirming that the principal of the loan to Zhu Kaibo should be returned is 15668898.7 yuan, as well as the corresponding interest loss, lawyer's fee and property preservation liability insurance loss.

(3) Gaosheng holding and Wei Junkang have been ordered to return the loan principal of 15668898.7 yuan to Zhu Kaibo within 10 days from the effective date of this judgment, and compensate 219971.97 yuan of interest loss, 183350 yuan of lawyer's fee loss and 6525 yuan of property preservation liability insurance premium; Confirm the creditor's rights of Zhu Kaibo to Yuchi Ruide, Lanting industry and Huaxi Yunyou.

The company submitted the petition on May 24, 2020, and Zhejiang Higher People's court filed the case on July 2, 2020, and formed a collegial panel to hear the case.

2、 Verdict result

Recently, the company received the (2020) zminzhong No. 645 civil judgment issued by Zhejiang Higher People's court. Some of the reasons for the company's appeal were established, and the court accepted it and made partial changes to the original judgment. The specific judgment results are as follows:

Change the judgment of Hangzhou intermediate people's Court (2018) ZH01 no.1520 civil judgment on the amount of return and compensation, that is, Gaosheng holdings, Wei Junkang, Yuchi Ruide, landing industry and Huaxi Yunyou will return the loan principal of RMB 13128198.32 to Zhu Kaibo within 10 days after the date of service of this judgment, and compensate 168088.75 yuan of interest loss and 183350 yuan of lawyer's fee loss The loss of property preservation liability insurance was 6525 yuan. In the second instance case acceptance fee, Gaosheng holding company bears 69428 yuan.

III. possible impact on the company and measures taken by the company

The above judgment of Zhejiang Higher People's court is final. As Yuchi Ruide, Lanting industry and Huaxi Yunyou are all in bankruptcy proceedings, the company may face the risk of being enforced. The company has hired external professional lawyers to actively deal with the legal risks that may arise after the judgment of the case. If the company is forced to enforce the relevant compensation liability, the company will apply for creditor's rights to Yuchi Ruide, landing industrial and Huaxi Yunyou managers, and at the same time, recover from Wei Junkang, so as to minimize the loss and the negative impact of the matter on the company, and safeguard the interests of the company and small and medium-sized investors. The company will continue to follow up the progress of relevant matters and fulfill the obligation of information disclosure in a timely manner. The company has successively published the case on the designated information disclosure media. For details, please refer to the announcement on the reply to the concern letter of Shenzhen Stock Exchange (No. 2018-89), the progress announcement on external guarantee and fund occupation (No. 2018-99), the progress announcement on the freezing of large shareholders' shares and the company's illegal guarantee and fund occupation (No. 2019-07) Notice on receiving legal documents and litigation progress of Hangzhou intermediate people's Court of Zhejiang Province (No. 2019-94), notice on reply to Shenzhen Stock Exchange's attention letter (No. 2020-13), and notice on receiving legal documents and litigation progress of Hangzhou intermediate people's Court of Zhejiang Province (No. 2020-51). The company has no other litigation and arbitration matters that should be disclosed but not disclosed. The information disclosure media designated by the company are China Securities Journal, Shanghai Securities Journal, securities times, securities daily and CNKI（ www.cninfo.com.cn ）All information of the company shall be subject to the announcement published by the company in the above media. Please pay attention to the company's announcement and investment risk. It is hereby announced.

Board of directors of Gaosheng Holding Co., Ltd

June 24, 2001