La Chapelle (06116) announced that on January 26, 2021, the company received the “Summons” and “Civil Complaint” from the Intermediate People’s Court of Urumqi, Xinjiang Uygur Autonomous Region (2021) New 01 Minchu No. 41. The plaintiff is Xinjiang Hengding International Supply Chain Technology Co., Ltd., and the defendants are the company, Shanghai Leou Clothing Co., Ltd., Nuoxing (Shanghai) Clothing Co., Ltd. and Shanghai Weile Clothing Co., Ltd.
It is reported that, after deliberation and approval at the 34th and 35th meetings of the company’s fourth board of directors, the company used the newly established wholly-owned subsidiary Xinjiang Tongrong Clothing Co., Ltd. as the nominal lender to obtain Hi-tech Group issued an entrusted loan of RMB 550 million through Urumqi Bank.
As of now, High-tech Group has filed a lawsuit with the Urumqi Intermediate Court over the entrusted loan contract dispute.
The plaintiff has made the following requests:
1. Requesting a legal order to order the company to repay the plaintiff’s sales amount of approximately RMB 219 million;
2. Requesting a legal order The company will pay 6% penalty interest during the overdue payment period from the date of payment to the date of actual payment of the debt. The provisional amount as of December 31, 2020 is RMB 4.1177 million;
3 .Request to order Shanghai Leou to jointly bear repayment responsibility within the scope of RMB 20.1924 million principal and penalty interest;
Request to order Shanghai Nuoxing to jointly bear repayment responsibility within the scope of RMB 11.2516 million principal and penalty interest. Responsibility for repayment;
4. Request that the company, Shanghai Leou, and Shanghai Nuoxing be ordered to pay legal fees of approximately RMB 1.2317 million in this case;
5. Request that the company be ordered to be ordered by law , Shanghai Leou, and Shanghai Nuoxing paid preservation fees of RMB 5,000 and preservation insurance premiums of RMB 85,844 to the plaintiff (the total amount of the above claims in items 1, 2, 4, and 5 is approximately RMB 224 million);
6. Request that Shanghai Weile be jointly and severally liable for the above debts;
7. Request that the litigation costs be borne by the defendant in accordance with the law.
The company has received the “Summons” and “Civil Complaint” from the Urumqi Intermediate People’s Court (2021) New 01 Minchu No. 41. The case has been accepted by the court and has not yet been heard. The company will continue to actively communicate with Hi-Tech Group and relevant parties and strive to properly resolve the litigation matter as soon as possible. At the same time, the company is working with a team of professional lawyers to respond to the lawsuit and will actively take necessary measures to effectively protect the legitimate rights and interests of the company and all shareholders.
This lawsuit was caused by the company’s acquisition of an entrusted loan of RMB 550 million from the High-tech Group. Since the company has accrued relevant costs and interest expenses in accordance with accounting standards, the company does not expect that this lawsuit will have a significant impact on profits for the current period or subsequent periods. Since the case is still in the court acceptance stage, the final impact will be determined by the court hearing results and annual audit results. </p
