Kerid (002072): Litigation Matters

Kerid Cmi Holdings Ltd

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.

Recently, the company received the Shandong securities regulatory bureau's "inquiry letter on matters related to Kai Reed Cmi Holdings Ltd" (Lu Zheng Jian (2019) 48), and immediately organized personnel to verify the related litigation matters.

I. The basic situation of litigation matters

In February 2018, Hangzhou Xuan Tang Industrial Co., Ltd. (hereinafter referred to as "Xuan Tang Company") filed a lawsuit against the company and Zhejiang Yifu Holding Group Co., Ltd. (hereinafter referred to as "billion rich company"). The dispute was pronounced in the people's Court of Xiaoshan District, Hangzhou.

The company appealed to the people's Court of Hangzhou City, Zhejiang Province on June 2018 and refused to accept the verdict.

Two. The basic situation of the cases concerned

1. Case Party

Plaintiff: Hangzhou Xuan Tang Industrial Co., Ltd.

Address: 301, room 3, 4 building, 105 BINKANG Road, Binjiang District, Hangzhou, Zhejiang.

Defendant 1: Kerid Cmi Holdings Ltd

Legal representative: Zhang Peifeng

Residence: No. 18, Shun he road, Dezhou.

Defendant two: Zhejiang Yifu Holding Group Co., Ltd.

Legal representative: Shao Tengfeng

Residence: No. 67, No. two road, Xiaoshan economic and Technological Development Zone, Hangzhou, Zhejiang

2. Facts and reasons for cases involving companies

The Plaintiff alleged that in August 25, 2014, the defendant Reed company issued a commercial acceptance bill to the defendant's billion dollar company. The payee was Kai Reed company and the payee was a billion dollar company. The amount of the bill was 20 million yuan, the date of issue was August 25, 2014, and the maturity date of the bill was February 24, 2015.

As a drawee, Kerid signed the bill and promised to accept the draft and pay the bill unconditionally.

The defendant, the company, pferred the endorsement of the above bill to the plaintiff.

In February 16, 2016, the plaintiff commissioned the Bank of Hangzhou Xing Xing Branch of the bank to collect the money, but the defendant Reed refused to pay.

The plaintiff held that the plaintiff should have the right to make the bill in accordance with the company's endorsement.

As a drawer and payer, the defendant Reed company shall bear the liability for acceptance and payment of bills of exchange after issuing bills of exchange, and shall pay the amount, interest and expenses to the holder, namely the plaintiff, when the bill is not accepted or paid.

The defendant's billion dollar company, as the endorser of the bill, should be jointly and severally liable for the above payments.

3. Litigation request

Request the court to order according to law: Kay Reed company paid 20 million yuan to the Hong Kong company, and paid 20 million yuan on the basis of the sum of 20 million yuan. The interest loss from February 25, 2015 to June 1, 2017 was 2269166.66 yuan. The company was jointly and severally liable for the above money.

4. Judgement and Adjudication

Kerid company paid Hangzhou Xuan Tang Industrial Co., Ltd. 20 million yuan within ten days from the date of the judgment's entry into force, and repaid the interest loss from the same period loan benchmark interest rate announced by the people's Bank of China from February 27, 2015 to the actual payment date, and dismissed other claims of Hangzhou Xuan Tang Industrial Co., Ltd.

Three, the progress of the above cases

The company refused to accept the above judgment and appealed to the people's Court of Hangzhou, Zhejiang province. In June 2018, the court made the final judgment of upheld the original judgment.

Four. Other undisclosed litigation and arbitration matters

In addition to the litigation items disclosed in the daily disclosure and periodic reports, as of the date of announcement, the company will hire lawyers to check and sort out other litigation items of the company, and the company will promptly disclose the items of litigation that should be disclosed and not disclosed according to the information disclosure standards according to the results of verification and sorting.

Five. The possible impact of this lawsuit on the company's current profits or future profits.

In view of the above litigation, the company will entrust lawyers to take measures to apply for retrial or report to the public security organ to the people's court at the next higher level, actively advocate the company's rights and protect the company's rights and interests from infringement. Therefore, the impact of the company's current and subsequent profits is still uncertain. The company will fulfill its obligation of information disclosure in accordance with the progress of the retrial and disposal of the above cases, and invite the majority of investors to pay attention to investment risks.

Notice hereby.

Kerid Cmi Holdings Ltd board of directors

April 10, 2019