*ST Gaosheng (000971): Contract Involvement Due To Guarantee

In January 13th, *ST issued a notice on receipt of the notification and relevant legal documents of the fourth intermediate people's Court of Beijing Municipality in January 13th.

In June 2017, *ST's second largest shareholder, landing industry (Hubei) Co., Ltd. (hereinafter referred to as "blue tripod industry") borrowed money from Beijing Zhongtai Chuang Ying Business Management Co., Ltd. (hereinafter referred to as "Beijing Zhongtai"). Beijing, China and Thailand commissioned the Shanghai branch of Limited by Share Ltd white jade branch to lend money to landing industry, and the three party signed the "RMB unit entrusted loan loan contract" and its supplementary agreement. The loan amount was RMB 100 million yuan (450000000 yuan), the annual interest rate of borrowing was 15%, and the borrowing period was 6 months (from June 13, 2017 to December 13, 2017).

The company's actual controller and its associated companies have provided guarantees and pledges for the loan, and the company has also provided a guarantee undertaking for the loan because the company's current chairman has used the official seal illegally. The announcement of the company's announcement on the issue of major shareholders' share freeze and company's violation of guarantee and capital occupation in January 26, 2019 (Bulletin number: 2019-07) has been disclosed.

A few days ago, Beijing and Thailand filed a lawsuit against the fourth middle court of Beijing in the guarantee contract dispute. The company and the Pacific optical cable data communication Co., Ltd., as the guarantor, paid the balance of RMB 13 million 152 thousand and 600 yuan in Beijing and Thailand. The liquidated damages as at November 20, 2019 amounted to 5 million 769 thousand and 600 yuan (calculated on the basis of 13 million 152 thousand and 600 yuan of the loan principal, according to 24% interest rate per year). The total sum was 18 million 922 thousand and 200 yuan. From November 20, 2019 to the actual payment, the default payment was calculated according to the 24% annual interest rate standard, and the cost of the plaintiff's realization of the creditor's rights was paid.