The company and all members of the board guarantee that the content of this announcement is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Shenzhen Xinguang Yuancheng Co., Ltd. (hereinafter referred to as "the Company" or "Xinguang Yuancheng") recently received a notice from the Intermediate People's Court of Jinhua City, Zhejiang Province regarding the auction of real estate owned by Yiwu Shimao Center Development Co., Ltd. and Zhejiang Xinguang Building Materials Decoration City Development Co., Ltd. The relevant situation is disclosed as follows:
I. Major Litigation Matters and Basic Case Information
The Company disclosed an announcement on October 22, 2019, regarding major litigation involving its wholly-owned subsidiary (Announcement No.: 2019-087). The plaintiff, Zhejiang Merchants Bank Co., Ltd. (hereinafter referred to as "Zhejiang Merchants Bank"), filed a financial loan contract dispute against defendants Yiwu Shimao Center Development Co., Ltd. (hereinafter referred to as "Yiwu Shimao"), Zhejiang Xinguang Building Materials Decoration City Development Co., Ltd. (hereinafter referred to as "Xinguang Building Materials City"), Xinguang Yuancheng, Zhou Xiaoguang, Yu Yunxin, and others, requesting the defendants to repay the principal and interest of the loan amounting to 2,081,001,300 yuan.
On April 9, 2020, the Company disclosed an announcement regarding the progress of the major litigation (Announcement No.: 2020-025). The Company received a civil judgment from the Intermediate People's Court of Jinhua City, Zhejiang Province (No. [2019] Zhe 07 Min Chu 390).
On August 4, 2020, the Company disclosed another progress announcement (Announcement No.: 2020-061). The Company received an enforcement notice from the Intermediate People's Court of Jinhua City, Zhejiang Province (No. [2020] Zhe 07 Min Zhi 446), ordering the defendants to fulfill the judgment content of No. [2019] Zhe 07 Min Chu 390 and pay the enforcement fees.
On October 13, 2020, the Company disclosed an announcement regarding the seizure of certain properties of its wholly-owned subsidiary (Announcement No.: 2020-074). Due to Yiwu Shimao and Xinguang Building Materials City failing to fulfill the repayment obligations determined by the effective legal documents, Zhejiang Merchants Bank applied to the court for compulsory enforcement, which ruled to seize certain properties of Yiwu Shimao and Xinguang Building Materials City.