Basic Situation of the Current Litigation Matter
The company's subsidiary, Zhuhai Hengyuan Financing Leasing Co., Ltd. (hereinafter referred to as "Hengyuan Leasing"), recently received a "Notice of Acceptance" from the Intermediate People's Court of Zhuhai City, Guangdong Province (hereinafter referred to as "Zhuhai Intermediate Court"). The Zhuhai Intermediate Court accepted the case filed by Hengyuan Leasing against Wuhan Yunsheng Special Automobile Manufacturing Co., Ltd. (hereinafter referred to as "Wuhan Yunsheng"), Wuhan Hepu Real Estate Development Co., Ltd. (hereinafter referred to as "Wuhan Hepu"), and Wang* regarding a financing lease contract dispute on May 16, 2023. The total amount involved in the case is RMB 179,852,409.22.
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Litigants
- Plaintiff: Zhuhai Hengyuan Financing Leasing Co., Ltd.
- Defendant 1: Wuhan Yunsheng Special Automobile Manufacturing Co., Ltd.
- Defendant 2: Wuhan Hepu Real Estate Development Co., Ltd.
- Defendant 3: Wang*
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Litigation Requests:
- (1) Order Defendant 1 to pay overdue rent totaling RMB 171,644,125.00.
- (2) Order Defendant 1 to pay a buyout price of RMB 100.
- (3) Order Defendant 1 to pay overdue payment penalties totaling RMB 8,028,511.48 (calculated from the day after each rent due date at a rate of 0.03% per day, temporarily calculated until April 5, 2023, and required to be paid until the debt is fully settled). The total amount for requests (1), (2), and (3) is RMB 179,672,736.48.
- (4) Order Defendant 1 to pay a preservation guarantee fee of RMB 179,672.74.
- (5) Request that Defendants 2 and 3 bear unlimited joint liability for all debts within the scope of requests (1), (2), (3), and (4).
- (6) Request that the litigation costs be borne by the three defendants.
Basic Situation of the Current Litigation Case
In November 2019, Hengyuan Leasing signed a "Financing Lease Sale and Leaseback Contract" and a "Purchase Contract" with Defendant 1, Wuhan Yunsheng. The main contract stipulated that Wuhan Yunsheng would sell a batch of equipment to Hengyuan Leasing for RMB 170,000,000, and Hengyuan Leasing would lease the purchased equipment back to Wuhan Yunsheng, which would pay a total of RMB 202,795,833.32 in lease payments in 8 installments. On the same day, Defendant 2, Wuhan Hepu, signed a "Guarantee Agreement" with Hengyuan Leasing, agreeing to provide unlimited joint liability guarantees for all debts under the main contract. Defendant 3, Wang*, issued a "Guarantee Letter" to Hengyuan Leasing, agreeing to bear unlimited joint liability for all debts under the sale and leaseback contract.
In November 2021, due to operational needs, Wuhan Yunsheng requested to adjust the lease repayment plan from Hengyuan Leasing. After mutual agreement, both parties signed a "Supplementary Agreement" to adjust the unpaid principal of RMB 153,000,000 and the corresponding interest, changing the total lease amount to RMB 221,467,736.10 and extending the payment period from 8 installments to 12 installments. As of the date of filing the lawsuit, Defendant 1, Wuhan Yunsheng, had paid a total of RMB 49,823,611.10 in rent to Hengyuan Leasing, with overdue rent of RMB 171,644,125.00 still unpaid. Wuhan Yunsheng's actions constitute a significant breach of contract, and they should bear corresponding liability for breach according to the leaseback contract. Hengyuan Leasing has the right to request Defendants 2 and 3 to assume unlimited joint liability for the debts owed by Wuhan Yunsheng within the scope of their guarantees. To protect the company's legal rights, Hengyuan Leasing filed a lawsuit with the Zhuhai Intermediate Court, requesting that Wuhan Yunsheng pay the financing lease rent, overdue penalties, and guarantee fees, and that Wuhan Hepu and Wang* bear unlimited joint liability for Wuhan Yunsheng's debts.
As of the date of this announcement, the case has not yet gone to trial, and the company will continue to monitor the subsequent developments of the case and fulfill its disclosure obligations in a timely manner.