Announcement On Progress Of Judicial Auction Of Holding Shares Of Controlling Shareholders

On December 17th, the announcement was made on the announcement of the "judicial sale of controlling shareholders holding part of their shares".
The following is the full text of the announcement:
Securities code: 603555 Securities: 2019-051
Bond Code: 122346 bond short: 14 bird of honor
Limited by Share Ltd
Announcement on progress of judicial sale of holding shares of controlling shareholders
The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important note:
The shares sold by the judicial auction are 37 million 695 thousand tradable shares that are held by the controlling shareholders of the company, accounting for 6% of the total share capital of the company, accounting for 7.86% of the shares held by the controlling shareholders.
This auction is the first auction, because no one bid, this auction auction. As of the date of this announcement, the company has not received any notification from the Xiamen bird's group or any relevant auction documents of the intermediate people's court.
The 30 million shares of the company (the total share capital of the company is 4.77%, accounting for 6.26% of the shares held by the controlling shareholder) will also be auctioned from 10 hours in December 23, 2019 to 10 hours in December 24, 2019 (except for time lapse) in the Jingdong judicial auction platform (sifa.jd.com) for the first time.
1. The basic situation of judicial auction.
The intermediate people's Court of Xiamen issued an auction notice to the group of birds and birds ([2018] min 02 02 569], and the Xiamen intermediate people's court proposed to sell the 37 million 695 thousand shares of the company's 37 million 695 thousand shares of tradable shares (including 33 million shares that have been pledged to Xiamen International International Trust Co., Ltd.) and 4 million 695 thousand shares that have not been mortgaged in the above-mentioned cases, and divided them into 10 million stocks, 11 million shares, 11 million shares and share shares. They were respectively auctioned by the closing price of the closing day of the day before the auction, that is, MA20, multiplied by the total number of shares as the starting price and reserve price, and handed over to the Jingdong judicial auction platform of Xiamen intermediate people's Court of Fujian province for the first time. A case of a notarized creditor's right with mandatory effect of the company's controlling shareholder, Hongkong Bird International Group Co., Ltd. (hereinafter referred to as "the bird of honor group") and the Xiamen International Trust Co., Ltd. [(2018) min 02 Zhi 569]
Details of the company's announcement on the Shanghai stock exchange website in November 19, 2019, "the announcement of the auction of the shares held by the controlling shareholder and the auction of the shares of the controlling shareholder" (pro 2019-043).
Two. Progress of the auction.
The above shares were auctioned at the Jingdong judicial auction platform (sifa.jd.com) from 10 hours in December 16, 2019 to 10 o'clock in December 17, 2019. According to the auction results displayed on the Jingdong judicial auction platform page, the auction was patrolled because no one had bid.
Three, other related instructions and risk tips.
1, according to the provisions of the Supreme People's Court on Several Issues concerning the judicial auction of the people's court, twenty-sixth: "no one bid during the auction of Internet judicial auction. After the auction, it should be auctioned again on the same network judicial auction platform within thirty days. The auction of movable property should be announced seven days before auction. Auction of immovable property or other property rights shall be announced fifteen days before the auction. The auction price of the auction should not exceed twenty percent of the previous bid price. Auction of auction again can be sold in accordance with the law in the same network judicial auction platform. Therefore, there is a risk of being auctioned again.
As of the date of this announcement, we have not received any notice from the company or any other relevant legal documents of the intermediate people's Court of Xiamen.
2, as of the date of this announcement, the total number of shares held by the company is 479 million 115 thousand shares, which are all tradable shares with unlimited sale conditions, accounting for 76.22% of the total share capital of the company. The total number of shares held by the company is accumulated to 426 million 547 thousand and 300 shares, accounting for 67.86% of the total share capital of the company, accounting for 89.03% of the shares held by the controlling shareholder. The shares that will be auctioned by law will be 37 million 695 thousand shares of the company, accounting for 6% of the total share capital of the company, accounting for 7.86% of the shares held by the controlling shareholders.
In addition, 30 million shares of the company, which account for 4.77% of the total share capital of the company and 6.26% of the shares held by the controlling shareholders, will also be auctioned from 10 hours in December 23, 2019 to 10 hours in December 24, 2019 (except for time lapse) in the Jingdong judicial auction platform (sifa.jd.com) for the first time. For details, we can see in detail the announcement of the company on November 22, 2019 that it will be subject to judicial auction of shares held by controlling shareholders. "Pro 2019-044".
3, the listed companies and the controlling shareholders operate independently, and the high proportion pledge, freezing of the controlling shareholders' shares and the auction have not yet had a significant impact on the stability of the listed companies' production, operation and governance. However, due to the continuous decline of stock prices in 2018, the risk of stock ownership, the influence of public opinion, the limited ability of its own financing, and the failure of the corporate bonds to be paid on time, the liquidity of the listed companies is tight. At present, it is difficult to maintain the smooth operation of the main business. The company and its controlling shareholders will actively communicate with creditors, appease the creditors' emotions, fully coordinate all creditors, and jointly explore the solution to the debt problem, so as to reduce the risk of judicial disposal of equity.
4. Subsequent auction, auction, court execution of legal procedures, transfer of ownership and other links may be involved in the auction. If the above procedures are completed, the company will perform corresponding information disclosure obligations according to the final result.
The company will pay close attention to the follow-up progress of the above matters and fulfill the obligation of information disclosure in accordance with relevant laws and regulations. The information disclosure media designated by the company are China Securities Daily, Shanghai Securities Daily, securities times, securities daily and Shanghai stock exchange website (www.sse.com.cn). The information released by the company is based on the bulletins published in the above designated newspapers and websites. Investors are invited to invest rationally and pay attention to investment risks.