Shenzhen Textile A (000045): Progress In Arbitration

Stock Code: 000045, 200045 securities abbreviation: Shenzhen textile a, Shenzhen textile B Announcement No.: 2020-56

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Shenzhen textile (Group) Co., Ltd

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Announcement on the progress of the company's involvement in arbitration

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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.

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On March 9, 2020, Shenzhen textile (Group) Co., Ltd. (hereinafter referred to as "the company" or "the respondent") received the notice of Arbitration (2020) No. 452-2 of Shenzhen International Arbitration Court and the application for arbitration submitted by Hangzhou Jinjiang Group Co., Ltd. (hereinafter referred to as "Jinjiang group" or "the applicant") as the applicant The announcement on the company's involvement in arbitration was disclosed on November 11, and the progress announcement on the company's involvement in arbitration was disclosed on March 28 and November 5, 2020, respectively. For details, please refer to the company's Announcement No. 2020-07, 2020-21 and 2020-50 on www.cninfo.com.cn.

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On December 1, 2020, the arbitration case will be heard by the seventh arbitration tribunal at the office of Shenzhen Stock Exchange. The progress of this arbitration case is hereby announced as follows:

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I. Basic information of this arbitration case

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(1) the parties to the arbitration

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Applicant: Hangzhou Jinjiang Group Co., Ltd

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Respondent: Shenzhen textile (Group) Co., Ltd

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(2) arbitration institution: Shenzhen International Arbitration Court

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(3) seat of arbitration institution: Shenzhen

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(4) arbitration hearing time: December 1, 2020

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(5) the reasons for the applicant's claim contained in the application for arbitration

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The applicant holds that, subject to the management system of the wholly-owned state-owned enterprise still being implemented by the respondent and the Shenzhen Shengbo Optoelectronic Technology Co., Ltd. (hereinafter referred to as "Shengbo optoelectronics"), after the capital increase, the applicant can not actually dominate the operation and management of Shengbo optoelectronics, and can not give full play to the advantages of the applicant in terms of system, mechanism, industry and management The successful experience of potential and industry integration can not realize the production line linkage, industrial integration and resource integration of Shengbo optoelectronics as expected, which leads to the failure to realize the contract purpose of the cooperation agreement, and the contract basis for the applicant to make performance commitment and profit supplement is gone. In this case, it is obviously unfair for the applicant to continue to fulfill the performance commitment and make up obligation under the cooperation agreement, and the purpose of the contract can not be achieved.

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(6) the applicant's claim for arbitration

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1. The ruling makes the following changes to the cooperation agreement:

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(1) delete the original Article 3.1 of the cooperation agreement, and the rights and obligations that have not been fulfilled shall not be performed any more;

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(2) delete the original article 6.4 of the cooperation agreement, and the rights and obligations that have not been fulfilled shall not be performed any more;

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2. Award the respondent to bear the arbitration fee and the actual expenses of the arbitration tribunal.

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The applicant reserves the right to further modify the arbitration claim.

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(7) the applicant's modification of the arbitration claim

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On September 24, 2020, Shenzhen International Arbitration Court received the application document for change of arbitration request submitted by the applicant and the subsequent supplementary arbitration fee, confirmed the acceptance of the application after the change, and on November 2, 2020, Shenzhen international arbitration court served on the applicant and the respondent (No. 452-9 notice of acceptance of change of arbitration request) on November 2, 2020. The arbitration claim after modification by the applicant is as follows:

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1. The award confirms that the agreement on performance compensation in 2019 in Article 3.1 of the cooperation agreement has been terminated;

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2. Or, if the respondent refuses to accept that the agreement on performance compensation in 2019 in Article 3.1 of the cooperation agreement has been terminated, or the arbitration tribunal considers that the first arbitration claim mentioned above is not supported, the respondent shall request an award to terminate Article 3.1 of the cooperation agreement; the respondent shall return or compensate the applicant for the compensation paid by the applicant in 2018, 7.2687 million yuan and 202.3407 million yuan of profit loss that the respondent could have obtained from the applicant;

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3. Award the respondent to bear the arbitration fee and the actual expenses of the arbitration tribunal.

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II. Progress of this arbitration case

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The arbitration case will be heard at 9:30 on December 1, 2020 at the seventh arbitration tribunal of the arbitration court located in the office of Shenzhen Stock Exchange. Under the auspices of the arbitration tribunal, the applicant and the respondent conducted the process of proof and cross examination. The applicant applied for modification of the arbitration claim in the court on the same day and obtained the consent of the arbitration tribunal. Due to the sufficient expression in the trial investigation and debate, the arbitration tribunal has given both parties one week to submit written agency opinions, and the company has submitted written agency opinions to the arbitration tribunal on December 9, 2020.

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On December 14, 2020, the company learned that Jinjiang Group, as the applicant, submitted to Shenzhen International Arbitration Court on December 8, 2020 the "letter on confirming (2020) Shenzhen arbitration case No. 452 arbitration claim": for the avoidance of doubt, the applicant confirmed in writing that the changed arbitration request is as follows:

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(1) ruling that the applicant shall be exempted from the performance compensation obligation in 2019 as stipulated in Article 3.1 of the cooperation agreement, that is, the applicant will no longer pay RMB 244783800 to Shengbo optoelectronics;

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(2) if the arbitration tribunal does not support the first arbitration claim after hearing, then: request for an award to terminate Article 3.1 of the cooperation agreement; the respondent shall compensate the applicant for the compensation of 197.2687 million yuan paid by the applicant in 2018; and the respondent shall compensate the applicant for the loss of profits that could have been obtained by the applicant by 202340700 yuan;

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(3) award the respondent to bear the arbitration fee of the case and the actual expenses of the arbitration tribunal.

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III. The impact of the arbitration matters announced this time on the company

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As of the disclosure date of this announcement, the arbitration has not been awarded, and the arbitration result of the arbitration matter is uncertain. The company will timely perform the information disclosure obligation on the progress of the above matters and the impact on the company. Please pay attention to the investment risk.

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IV. documents for future reference

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The applicant's letter on confirming (2020) szgc accepting the arbitration claim of No. 452 arbitration case

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Shenzhen textile (Group) Co., Ltd

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Board of directors

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December 17, 2002