Jiangsu Sunshine (600220): Litigation Progress Of Subsidiaries

Jiangsu Sunshine Co., Ltd. announcement on the progress of subsidiary litigation

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

Important content tips:

The litigation stage of the case: the court makes a ruling in the first instance of retrial

The party status of the listed company: Jiangyin Jindi Wool Textile Co., Ltd. (hereinafter referred to as "Jindi company"), a wholly-owned subsidiary of Jiangsu Sunshine Co., Ltd. (hereinafter referred to as "the company"), is the retrial applicant (the defendant of the original trial).

The amount involved: deposit and rent of RMB 10800000, compensation for termination of contract of RMB 15100000 and corresponding overdue interest.

This litigation ruling will not have a negative impact on the profit and loss of listed companies

I. Basic information of the lawsuit

Recently, the company received the (2021) Hu 02 min Zai No. 59 civil ruling issued by Shanghai Second Intermediate People's court.

Litigation organization: Shanghai Second Intermediate People's court

Location of litigation institution: Shanghai

Retrial applicant (original defendant): Jiangyin Jindi Wool Textile Co., Ltd

Legal representative: Chen Lifen

Agent ad litem: Lin Hong, Jiangsu Xinzhuo law firm

Agent ad litem: Shen Jian, Jiangsu Xinzhuo law firm

Respondent (plaintiff in the original trial): Shanghai Xiaohua Industrial Development Co., Ltd. (hereinafter referred to as "Xiaohua company")

Legal representative: Zhan Guojun

Agent ad litem: Zhao Wenke, Beijing Junyou law firm

Agent ad litem: Wu Jianfei, Beijing Junyou law firm

2、 Description of the proceedings

Jindi company and Xiaohua company signed the "shop lease contract" on January 14, 2019, and then there were disputes over the housing lease contract.

Xiaohua company filed a lawsuit with the second intermediate people's Court of Shanghai, requesting: 1. Rescission of the shop lease contract mentioned above; 2. Jindi company returned the deposit and advance payment of 10.8 million yuan; 3. Pay RMB 35.776 million as liquidated damages; 4. Compensation for losses of 3.88 million; 5. The legal costs shall be borne by Jindi company.

During the trial, Jindi company and Xiaohua company reached a mediation agreement. Shanghai Second Intermediate People's court made (2020) Hu 02 min Chu No. 102 civil mediation statement on June 23, 2020. The parties voluntarily reached the following agreement: 1. Xiaohua company and Jindi company rescinded the "shop lease contract"; 2; 2. Jindi company returned 10.8 million yuan of deposit and rent advance payment to Xiaohua company; 3. Jindi company paid 15.1 million compensation to Xiaohua company; 4. If the payment obligations in 2 and 3 above are not fulfilled, the interest shall be paid from July 1, 2020 to the actual settlement date; 5. The case was accepted by Fei Xiaohua company; 6. There is no other dispute between the two parties. On July 16, 2020, the company disclosed the announcement on the explanation of the subsidiary company receiving the execution notice (see the Announcement No. Lin 2020-024 disclosed by the company in Shanghai Stock Exchange). The company has never received legal documents such as litigation copy, notice of response, civil mediation document sent by the court. The entrusted litigation agent specified in the mediation statement is not the employee of the company, and the company has never authorized relevant personnel to participate in the litigation on behalf of the company. The above-mentioned behavior is an individual act carried out in the name of Jindi company. The fake agent has surrendered himself to the public security organ for being suspected of committing a crime.

On June 4, 2021, the people's Court of Jiangyin City, Jiangsu Province, made a criminal judgment (2021) Su 0281, No. 91 at the beginning of punishment. It was found that: 1. In January 2019, Xia signed a shop lease contract with xiaohua company by using the forged official seal of Jindi company and the private seal of legal person, thus defrauding the victim of 10.8 million yuan, and then used the defrauded money for consumption and repayment of personal loans. Xia will voluntarily surrender to the police station on July 14, 2020. 2. Xia, in the name of Jindi company, mediated with xiaohua company through Shanghai Second Intermediate People's court and reached a mediation plan. Identification: 1. Xia is not a staff member of Jiangsu Sunshine Co., Ltd. or Jindi company. 2. After appraisal and the defendant's confession, the forged company seal and legal person's private seal were used when signing the shop lease contract. Xia signed the contract with xiaohua company in the name of others.

Xia signed a contract in the name of others for the purpose of illegal possession. In the process of signing and performing the contract, he defrauded the other party's property. The amount of money is very large. His behavior has indeed constituted the crime of contract fraud.

Sentence: 1. Xia committed the crime of contract fraud and was sentenced to 11 years' imprisonment and a fine of 100000 yuan. 2. Xia withdrew the illegal income of 10.8 million and returned it to the victim.

The company applied for retrial, retrial request: cancel the (2020) Hu 02 early Republic of China No. 102 civil mediation statement, and change the judgment to reject all claims of Xiaohua company.

On February 15, 2022, the second intermediate people's Court of Shanghai made the civil ruling (2021) Hu 02 min Zai 59. The retrial held that, based on the facts found at present, the entrusted agency procedures of Jindi company provided by Xia and the official seal on the confirmation of mediation agreement were all false. Therefore, the content of the mediation agreement in the original trial was not the true intention of Jindi company. The civil mediation statement of the original trial violated the principle of voluntariness and legality and should be revoked. According to the facts found and confirmed in the criminal judgment No. 91 of the sentence of Su 0281, the fact that Xia signed the "shop lease contract" with xiaohua company on behalf of Jindi company and collected money has been identified and made as the criminal fact of Xia

Therefore, the lawsuit filed by Xiaohua company as the plaintiff is not within the scope of the people's court to accept the civil action. The lawsuit of Xiaohua company should be rejected by ruling.

III. ruling of this lawsuit

On February 15, 2022, the second intermediate people's Court of Shanghai made a civil ruling (2021) Hu 02 min Zai No. 59, which is as follows:

1. Cancel the civil mediation statement (2020) Hu 02 min Chu No. 102 of Shanghai Second Intermediate People's court;

2. Reject the lawsuit of Shanghai Xiaohua Industrial Development Co., Ltd.

If you do not accept this ruling, you may appeal to the Shanghai Higher People's court within 10 days from the date of service of the ruling.

4. The impact of the lawsuit on the current or future profits of the company.

The ruling result of this lawsuit has no significant impact on the company's profits at present.

The company's information shall be subject to the relevant announcements published on the website of Shanghai Stock Exchange (www.sse. Com. CN) and the company's designated information disclosure media "Shanghai Securities News" and "China Securities News". Please pay attention to the investment risks.

It is hereby announced.

Jiangsu Sunshine Co., Ltd

17 February 2022