The 8 Bird Dealers Complained About 240 Million Arrears.

In March 10th, the noble bird issued a lawsuit notice.

Recently, the company has received 8 "Notice of acceptance" issued by the intermediate people's Court of Quanzhou. The court has formally accepted the company with Chongqing GUIYAO sporting goods Co., Ltd., Guangzhou Tianmin Sports Goods Co., Ltd., Changshu Yuan Sheng Sports Goods Trading Co., Ltd., Shanghai Hongyuan Sports Goods Co., Ltd., Lanzhou Hongtai Sheng sports. There are 8 cases of disputes between the original Nanjing brand sporting goods Co., Ltd., Hangzhou Tianqun sporting goods Co., Ltd. and Guangzhou Tianyu sporting goods Co., Ltd., which are the plaintiffs of the original brand dealers. 8 of the original brand dealers are defendants.

According to the announcement, all 8 defendants are the original brand dealers of our company, that is, the original company customers. The company has signed the regional distribution contract with "the" bird and bird "sports and leisure products with the above defendants, and authorized the defendant to sell the dealer of" lucky bird "recreational products in designated areas. According to the contract, the company has fulfilled its obligation to supply the defendant.

However, after the settlement between the two sides, as of December 31, 2019, the defendants still owed the company a total of 239 million 512 thousand and 600 yuan, and the defendant had not yet paid the bill through friendly negotiation and company's repeated payment.

In order to safeguard the legitimate rights and interests of listed companies, the company filed a civil lawsuit against the intermediate people's Court of Quanzhou recently, and was formally accepted by the court in March 6, 2020.

In the announcement, you pointed out that the company has gradually started to optimize its sales mode since the end of 2018, and has set up branches in some regions. Since then, the sales mode of the brand products has been independently operated by the authorized regional distributors of the original company, and has been transformed into the direct sale and redistribution of the company's direct store in the area. The channel management and control in some areas have been strengthened.

Therefore, this lawsuit will not have a significant adverse effect on the operation of the brand.

In addition, the company pointed out that in early 2019, the company had basically no longer had business cooperation with the 8 defendants, and the company had repeatedly collected its arrears. However, by the end of 2019, the time limit for the payment of the defendants had exceeded one year. Among them, 153 million 908 thousand and 800 yuan was overdue for 1-2 years, and 85 million 599 thousand and 100 yuan was overdue 2-3 years. According to the relevant provisions of the enterprise accounting standards, the company intends to prepare a single provision for bad debts in the accounts receivable mentioned above in 2019. It is expected that the net profit of the listed companies in the 2019 year will be about -2.2 billion yuan. The specific accounting methods and the results will be based on the annual audit results.