St Gaosheng (000971): Progress Of Stock Repurchase Cancellation

Stock Code: 000971 stock abbreviation: St Gaosheng Announcement No.: 2021-76

Gaosheng Holding Co., Ltd. should compensate for the performance commitment of Shanghai yingyue Network Technology Co., Ltd

Announcement on the progress of stock repurchase cancellation

The company and all members of the board of directors guarantee that the contents of information disclosure are true, accurate and complete, and there are no false records, misleading statements or major omissions.

Special tips:

1. Yuan Jianing is the responsible person for compensation for the repurchase and cancellation of uncompleted performance commitments, and the number of shares involved is 26251609 shares.

2. Due to the uncertainty of the completion time of the repurchase and cancellation of the shares to be compensated, please pay attention to the investment risk of the majority of investors.

1、 Basic information

According to the agreement on profit forecast and compensation for issuing shares and paying cash to purchase assets signed by Gaosheng Holding Co., Ltd. (hereinafter referred to as "the company") and Yuan Jianing and Wang Yu, the former shareholders of Shanghai yingyue Network Technology Co., Ltd. (hereinafter referred to as "yingyue network"), the supplementary agreement on profit prediction and compensation agreement for issuing shares and paying cash to purchase assets Yuan Jianing and Wang Yu promise that the net profit of yingyue network in 2016 will not be less than 60 million yuan, The net profit in 2017 is no less than 70 million yuan, that in 2018 is not less than 90 million yuan, and that in 2019 is not less than 111 million yuan.

The net profit of yingyue network after deducting the non recurring profit and loss in 2019 is 18.0982 million yuan, and the performance commitment profit of that year has not been fulfilled. According to the commitment agreement, Yuan Jianing and Wang Yu, the former shareholders of yingyue network, should compensate 32969408 shares of the company. On April 27, 2020 and June 30, 2020, the 43rd meeting of the 9th board of directors, the 17th meeting of the 9th board of supervisors and the 2019 annual general meeting of shareholders of the company respectively deliberated and passed the proposal on repurchase and cancellation of corresponding compensation shares of Shanghai yingyue Network Technology Co., Ltd, For details, please refer to the relevant resolution announcement (Announcement No.: 2020-26, 2020-27, 2020-56) published on the designated information disclosure website. Up to now, 6717799 shares compensated by Wang Yu to the company have been cancelled in Shenzhen Branch of China securities registration and Clearing Co., Ltd. on March 4, 2021. Yuan Jianing should still compensate 26251609 shares to the company. The company failed to complete the repurchase and cancellation because the company's shares were pledged. For details, please refer to the announcement on repurchase and cancellation of compensation shares corresponding to outstanding performance commitment of Shanghai yingyue Technology Co., Ltd. (Announcement No.: 2020-34) issued by the company on April 29, 2020 and March 9, 2021 on the designated information disclosure media Announcement on the completion of partial cancellation of compensation shares involved in major asset restructuring projects (Announcement No.: 2021-08).

2、 Progress

At present, Zhang Dai and Yuan Jianing, the actual controllers and chairman of the company, are actively negotiating and formulating plans with relevant parties, and will carry out the repurchase and cancellation of the compensated shares as soon as possible. The company is also paying close attention to the progress of the matter, and will timely fulfill the obligation of information disclosure according to relevant laws and regulations. Please pay attention to the investment risk of the majority of investors. It is hereby announced.

Board of directors of Gaosheng Holding Co., Ltd

December 17, 2001