*ST Kerry (002072): Progress In Litigation Matters

Kerid Cmi Holdings Ltd progress notice on litigation matters

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

I. The basic situation of litigation

Kerid Cmi Holdings Ltd (hereinafter referred to as the "company") received the "civil ruling" delivered by Dezhou intermediate people's Court of Shandong province (hereinafter referred to as the "Dezhou intermediate court") in August 13, 2019 ([2019] Lu 71 early Republic of China No. 71]. It was informed that the Dezhou branch of Industrial Commercial Bank of China Ltd (hereinafter referred to as the "Dezhou branch of ICBC") sued the company for the dispute over the loan contract to the Dezhou intermediate people's court, and the Dezhou intermediate people's court filed the case in March 12, 2019. The specific circumstances are as follows:

1. Plaintiff and defendant in litigation

Plaintiff: Industrial Commercial Bank of China Ltd Dezhou branch, place of residence, Shandong City, Dezhou City, Germany.

Person in charge: Zhu Feng, the president of the bank.

Defendant: Kai Reed Cmi Holdings Ltd, residence 18, Shun he West Road, Dezhou, Shandong.

Legal representative: Li Yanmei, general manager of the company.

Defendant: Shandong Lianxing construction Refco Group Ltd, residence in Shandong, Dezhou, Xinhua Road, 36

Legal representative: Che Changli, chairman of the company.

Defendant: Zhejiang fifth quarter Industrial Co., Ltd., residence 10, room 1, 1 building, five road, Zhejiang, Jianggan District, Hangzhou.

Legal representative: Tong Xiao Fei, executive director of the company.

Defendant: Hainan Zhong hang ocean fishing Co., Ltd., residence, Hainan, Haikou, Jinhua, 18 Jinmen West Road, two floor, Room 201, A building, 4

Legal representative: Hu Zhi Zhao, executive director and general manager of the company.

Defendant: Shenzhen City Dun Stone Industrial Co., Ltd., residence, Guangdong, Shenzhen, Futian District, Futian District, Sha tou street, Riverside Road and Tung Chung Road intersection, Beijing Capital riverside Times Square North District (phase two) first 09 stories.

Legal representative: Zhang Peifeng, general manager of the company.

Defendant: Shandong de cotton Group Co., Ltd. Place of residence: No. 18, Shun he road, Decheng District, Dezhou, Shandong

Legal representative: Li Huijiang, the chairman of the company, defendant: Wu Lianmo, male, born in February 16, 1972, Han nationality, living in Cangnan County of Zhejiang Province, defendant: Zhang Zhu Sheng, female, born in February 6, 1970, defendant of Hongkong Special Administrative Region: Zhang Peifeng, male, born in February 15, 1977, Han nationality, living in Qingtian County, Zhejiang Province

2. Litigation request

(1) the Kerid Cmi Holdings Ltd was asked to repay the plaintiff's loan of 67 million 970 thousand yuan (Capital: Lu Qian, Qi Bai Yuan, ten thousand yuan), and to pay the overdue interest.

(2) the second to defendant nine shall be jointly liable for repayment of the above debts.

(3) the plaintiff affirms that the contract No. sixth of the 2015 (2015) canal and the 2015 supreme canal mortgage contract, which is signed by the plaintiff and the defendant six, is valid. The plaintiff also ordered the plaintiff to have all the six Shandong decotton Group Co., Ltd., 105645th, 109260, 109261, 109262, 109263, 109264, 109261, 109262, 109263, 109264, 109261, 109262, 109263, 109261, 109262, 109263, No., No., No., No., No., No., No., No., No., No., No.12, No. 2, No. 2, Germany (No.), Germany (No.), and the land of priority (right) in Germany, with the priority right of compensation. The plaintiff and the defendant, six, the German cotton Group Co., Ltd. were all responsible for the defendant's six Shandong decotton Group Co., Ltd.

(4) the relevant litigation costs and preservation fees are borne by the defendants.

3. Introduction of the cause of action

In March 25, 2016 and January 26, 2017, the company signed a loan contract for circulating funds with Dezhou branch of ICBC, which accumulated a total loan of 67 million 970 thousand yuan to ICBC and was guaranteed by the Shandong Lianxing construction Refco Group Ltd, Zhejiang fifth quarter Industrial Co., Ltd., Hainan Air China Ocean Fishing Co., Ltd., Shenzhen city's Industrial Co., Ltd., Shandong de cotton Group Co., Ltd., Wu Lianmo, Zhang Zhusheng and Zhang Peifeng. The Dezhou branch of ICBC has brought a lawsuit against the court on the grounds that the company failed to fulfill its obligation to repay the principal and interest and the guarantor failed to fulfill the suretyship liability.

Two, litigation progress

In August 13, 2019, the company received the "civil ruling" of the Dezhou intermediate people's Court on the above litigation matters, and the ICBC Dezhou branch filed an application for withdrawal from the Dezhou intermediate people's Court on August 2019 6.

The Dezhou intermediate people's court held that the prosecution of the Dezhou branch of the plaintiff was voluntarily withdrawn from the case in consultation with the defendant Reed and Cmi Holdings Ltd, which was responsible for his own right of action.

In accordance with the first paragraph of article 145th of the Civil Procedure Law of the people's Republic of China, the following is decided:

The plaintiff will be allowed to withdraw the Industrial Commercial Bank of China Ltd Dezhou branch.

Three. Other undisclosed litigation and arbitration matters

In addition to the litigation matters disclosed in the daily disclosure and periodic reports, as of the date of announcement, the company has hired a lawyer to check and sort out other litigation items of the company. The company has promptly disclosed its litigation matters that should be disclosed and not disclosed according to the information disclosure standards according to the results of the verification and sorting.

Four, the impact on the company

In view of the fact that the lawsuit has been sued and the Dezhou branch has withdrawn, the Dezhou intermediate people's court has made a civil ruling to allow the ICBC Dezhou branch to withdraw the prosecution. Therefore, the prosecution will not affect the current profits and the later profits of the company. The company pays close attention to the follow-up situation. If there are any changes, the company will fulfill the obligation of information disclosure in time.

Five. Reference documents

Civil ruling

Notice hereby.

Kerid Cmi Holdings Ltd board of directors

August 14, 2019