02880.HK announced that from March 22, 2021 to June 22, 2021, a total of 7 warehousing cases occurred in Dalian Container Terminal Logistics Co., Ltd. (hereinafter referred to as "Terminal Logistics Company"), including a lawsuit filed by Terminal Logistics Company. The defendants are Shunde (Dalian) supply chain Management Co., Ltd. (hereinafter referred to as "Shunde Company"), natural persons Yin Li, Yin Yimin and Zhang Lihua, with a litigation amount of 300 million yuan. Terminal logistics is the defendant's 6 cases, the plaintiffs are Qingdao Kai Tou International Trading Co., Ltd., Fujian Rongjiang Import and Export Co., Ltd., products Zhongda Metal Group Co., Ltd., China Chengtong International Trading Co., Ltd., Qingdao Zhongli Trading Co., Ltd., Chongqing Yufeng Import and Export Co., Ltd. (hereinafter collectively referred to as "Import Agent" or "warehousing client") Among them, Qingdao Kai surrender Wharf Logistics Company and Shunde Company are the co-defendants, and in the other five cases, except Chongqing Yufeng case, Shunde Company is added as the third party, the cause of the case is port cargo custody contract dispute or warehousing contract dispute, the total amount of litigation is 1.06 billion yuan.

In the above-mentioned cases, the terminal logistics company has hired Shanghai Yingtai Law firm as the entrusted agent in the above seven cases. The above seven cases were heard by maritime courts, including 4 cases of Dalian Maritime Court, 2 cases of Ningbo Maritime Court and 1 case of Wuhan Maritime Court.

It is reported that from January 2020 to February 2021, the company's independent third party Shunde Company has carried out business cooperation with Qingdao Kai Tou International Trading Co., Ltd., Fujian Rongjiang Import and Export Co., Ltd., products Zhongda Metals Group Co., Ltd., China Chengtong International Trading Co., Ltd., Qingdao Zhongli Trading Co., Ltd., Chongqing Yufeng Import and Export Co., Ltd., Zhejiang products International Trading Co. These import agents have signed "Import Agency Agreement" or "Agent Procurement contract" with Shunde Company, it is agreed to act for the imported goods of Shunde Company in the name of such import agents and open a letter of credit in the name of such import agents to pay for the purchase of imported goods, the risks and responsibilities of the relevant imported goods shall be borne by Shunde Company. At the same time, the import agents signed the Customs Declaration Logistics warehousing Agreement or the Import Freight forwarder Agreement with the subsidiary terminal logistics company of the company, agreeing that the terminal logistics company shall handle the customs declaration, warehousing and storage of imported goods for these import agents.

In actual business, the fees incurred under the Customs Declaration Logistics warehousing Agreement or the Import forwarder Agreement shall be settled by Shunde in accordance with the agreed rates of the loading and unpacking (integral pick-up) Agreement signed with the Terminal Logistics Company. In view of the fact that the actual owner of the imported goods in these operations and the settlement person of the relevant warehousing charges are Shunde Company, the terminal logistics company releases the relevant goods in accordance with the instructions of the actual owner Shunde Company. Because Shunde failed to repay part of the import letter of credit to the import agent as scheduled, seven import agents filed a lawsuit against the terminal logistics company respectively. The terminal logistics company and the Shunde company are required to return the relevant goods under the Customs Declaration Logistics warehousing Agreement or the Import forwarder Agreement signed with the terminal logistics company.

Shunde undertakes to indemnify any loss caused by the terminal logistics company's liability to the third party as a result of the delivery of the goods by the terminal logistics company to the Shunde company or the person designated by the shunde company, and any direct and indirect losses caused to the production and operation of the terminal logistics company. At the same time, natural persons Yin Li, Yin Yimin and Zhang Lihua promised that the risks and responsibilities arising from the delivery of goods to Shunde by the terminal logistics company would be borne by them. Accordingly, the terminal logistics company filed a lawsuit against Shunde Company and natural persons Yin Li, Yin Yimin and Zhang Lihua. In May 2021, the terminal logistics company was approved by the Dalian Maritime Court to file a lawsuit against Shunde Company for property preservation.

Subsequently, after full communication and consultation with the parties, Zhejiang products International Trading Co., Ltd. reached a settlement with Shunde Company and withdrew its lawsuit against Shunde Company and Terminal Logistics Company. the settlement arrangement does not involve any compensation obligations of the terminal logistics company. Six other import agents are discussing a settlement plan, including applying to withdraw the lawsuit after signing the settlement agreement.

On November 29th, 2021, the terminal logistics company received the judgment of the first instance of the Ningbo Maritime Court on the case of China Chengtong International Trading Co., Ltd. against the terminal logistics company, and ordered the defendant terminal logistics company to pay about 110 million RMB and corresponding interest to the plaintiff China Chengtong International Trading Co., Ltd., rejecting other claims. The terminal logistics company refused to accept the judgment and filed an appeal to the higher people's Court of Zhejiang Province on December 9, 2021, which was accepted by the court and the judgment of first instance did not take effect. Other cases are under trial and no court has yet made a decision.

With regard to the case of China Chengtong International Trading Co., Ltd., the terminal logistics company filed an appeal to the higher people's Court of Zhejiang Province on December 9, 2021, requesting the court to rescind the judgment of the Ningbo Maritime Court of first instance and send the case back for retrial, or change the sentence according to law not to support all the appellee's claims; request that the appellee be ordered to bear the case acceptance fees, property preservation application fees and other litigation fees of the first and second instance of the case in accordance with the law.