*St Gaosheng (000971): Legal Documents Received And Litigation Progress

 Securities code: 000971 stock abbreviation: * ST Gaosheng Announcement No.: 2020-88 announcement of Gaosheng Holding Co., Ltd. on receiving legal documents and litigation progress of Beijing Fourth intermediate people's court The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions. Gaosheng Holding Co., Ltd. (hereinafter referred to as "the company" or "Gaosheng holding") received the civil judgment (2019) No. 618 (No. 198) of Beijing Fourth intermediate people's Court (hereinafter referred to as "Beijing No. 4 middle court") on November 5, 2020. The relevant matters are hereby announced as follows: 1. Background of the case, the company received the (2019) jing04 minchu 618 notice of response and relevant legal documents issued by Beijing NO.4 middle school on July 19, 2019. According to the loan and guarantee agreement, debt assignment agreement and other materials provided by the plaintiff Dong Yunwei, the loan and guarantee agreement was signed by the company as the sole debtor with the creditors Dong Yunwei and Yan Yuqing on July 18, 2018, with the loan amount of 4, The loan limit is 3 months and the monthly interest rate is 2.5%. The agreement stipulates that the above loan funds shall be remitted to the designated bank account of Beijing Cultural Silicon Valley asset operation group Co., Ltd. Wei Zhenyu, the original actual controller of the company, and his related parties provided unlimited joint and several liability guarantee for the above loan. On May 6, 2019, Yan Yuqing and Dong Yunwei signed the debt assignment agreement. Based on the above loan and guarantee agreement, Yan Yuqing has the right to transfer all the creditor's rights of the company to Dong Yunwei, the transferee. The above loan and guarantee agreement has not been approved by the company, and the company has no prior knowledge of the loan. The case was filed on July 15, 2019, and the trial was held on June 9, September 3, September 25 and October 27, 2020. The company received the first instance civil judgment on November 5, 2020. The company issued the announcement on the freezing of major shareholders' shares and the company's illegal guarantee and capital occupation on January 26, 2019, March 27, 2019 and July 24, 2019 respectively in the designated information disclosure media (Announcement No.: 2019-07) and notice on reply to concerns letter of Shenzhen Securities Exchange (Announcement No.: 2019-26) The announcement on receiving legal documents and litigation matters of Beijing Fourth intermediate people's Court (No. 2019-77) disclosed the matter. 2、 The main contents of the civil judgment are as follows: 1. Gaosheng holdings will repay the loan principal of RMB 40000000 and pay corresponding interest (6180 from October 19, 2018 to June 11, 2019) to the plaintiff Dong Yunwei within 15 days from the effective date of this judgment, 821.92 yuan, and the interest from June 12, 2019 to the actual settlement date shall be calculated at the annual interest rate of 24% based on 40000000 yuan: 2. Wei Junkang and Wei Zhenyu shall be jointly and severally liable for the debts of Gaosheng holdings to Dong Yunwei determined in the first item of this judgment, and shall have the right to recover from the company after assuming the joint and several liability. If the obligation to pay money is not fulfilled within the period specified in this judgment, the debt interest during the period of delay shall be doubled in accordance with Article 253 of the Civil Procedure Law of the people's Republic of China. The case acceptance fee of 272704.11 yuan shall be borne by Gaosheng holdings, Wei Junkang and Wei Zhenyu, and shall be paid within seven days from the effective date of this judgment. If they refuse to accept this judgment, Dong Yunwei, Gaosheng holding and Wei Zhenyu may, within 15 days from the date of service of this judgment, and Wei Junkang may, within 30 days from the date of service of this judgment, submit a petition of appeal to Beijing No.4 Central People's court, and file a copy according to the number of the other parties or representatives, and appeal to the Beijing Higher People's court. 3、 Impact on the company. The above borrowing was caused by the chairman of the company who used the company's seal in violation of the company's approval procedures. The borrowed money was not used in the company's own production and operation. The actual user was Beijing Culture Silicon Valley asset operation group Co., Ltd., which was the original controlling shareholder of the company. The company did not know about the loan in advance. Whether the company's profits need to be temporarily decided by the company's lawyers in conjunction with the company's final judgment, or whether the company's profits need to be prepared for a final trial by the people's court. The company will continue to pay close attention to the follow-up progress and fulfill the obligation of information disclosure in a timely manner in accordance with relevant provisions. 4、 Other China Securities Journal, Shanghai Securities News, securities times, securities daily and www.cninfo.com.cn are the designated media for information disclosure of the company. All information shall be subject to the announcement published by the company in the above designated media. Please pay attention to the company's announcement and investment risk. It is hereby announced that the board of directors of Gaosheng Holding Co., Ltd. is dated November 6, 2002