La Chapelle (06116) announced that on January 26, 2021, the company received the “Summons” and “Civil Prosecution” from the Intermediate People’s Court of Urumqi, Xinjiang Uygur Autonomous Region (2021) Xin 01 Minchu No. 41 shape”. 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 established a new wholly-owned subsidiary in the name of Xinjiang Tongrong Clothing Co., Ltd. The lender obtained a RMB 550 million entrusted loan issued by Hi-tech Group through Urumqi Bank.
Up to now, Hi-tech Group has filed a lawsuit with the Urumqi Intermediate People’s Court regarding the entrusted loan contract dispute.
The plaintiff has made the following requests:
1. Request that the company be ordered to repay the plaintiff’s sales amount of approximately RMB 219 million;
2. Request a legal order to order the company to pay a penalty interest of 6% for the overdue payment period from the date of payment to the date of actual payment of the debt. The tentative amount as of December 31, 2020 is RMB 4.1177 million yuan;
3. Request a legal order to order Shanghai Leou to bear joint repayment responsibility within the scope of the principal and penalty interest of RMB 20.1924 million; request a legal order to order Shanghai Nuoxing to Bear joint repayment responsibility within the principal and penalty interest of RMB 11.2516 million;
4. Request that the company, Shanghai Leou and Shanghai Nuoxing be ordered to pay legal fees of approximately RMB 123.17 in this case in accordance with the law. Ten thousand yuan;
5. Request that the company, Shanghai Leou, and Shanghai Nuoxing be ordered to pay preservation fees of RMB 5,000 to the plaintiff and preservation insurance premiums of RMB 85,844 (paragraphs 1 and 2 above). , 4, and 5 litigation claims, the total amount is approximately RMB 224 million);
6. Request to order Shanghai Weile to bear joint and several liability for the above debts in accordance with the law;
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” No. 41 of the Urumqi Intermediate People’s Court (2021) New 01 Minchu. 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 a RMB 550 million entrusted loan 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.
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