According to the Zhitong Finance App, Xinyan Co., Ltd. (300159.SZ) issued an announcement. The company recently filed a lawsuit with the Sichuan Chengdu Intermediate People's Court and received the “Notice of Acceptance of Case” (2023) No. 1188 of Sichuan 01 Minchu and related subpoenas. In this case, the status of the company's case was the plaintiff, and the lawsuit amount was about 2,023 billion yuan.

The original reason involved in this case was the execution of the transaction contract and the origin of the dispute. After the plaintiff Xinyan Co., Ltd.'s acquisition of the shares in Xinhang Titanium Technology was completed, Xinhang Titanium Technology became a wholly-owned subsidiary of the plaintiff, and the defendants became shareholders of the plaintiff. According to the 2015, 2016, and 2017 “Special Audit Report on Achievement of Significant Asset Restructuring Performance Commitments” issued separately by Lixin Certified Public Accountants (Special General Partnership), Singapore Titanium Technology met the net profit indicators after deducting non-recurring profit and loss during the performance commitment period, and the performance promises of each defendant were fulfilled.

On November 8, 2021, the plaintiff received a filing notice from the China Securities Regulatory Commission. The China Securities Regulatory Commission decided to file a case against the company due to the company's alleged illegal disclosure of information.

On January 17, 2023, the company and related parties Han Hua, Yang Lijun, Hu Xin, Zhang Shun, Liu Jiachun, Kuang Lipeng, and Zhou Weihua received the “Administrative Penalty Decision” ([2023] No. 2) issued by the China Securities Regulatory Commission. The decision determined that Singapore Airlines Titanium Technology implemented inflated performance through fictitious business and early revenue confirmation. In 2015-2019, the total inflated profit for each year was 177 million yuan, 398 million yuan, 563 million yuan, 313 million yuan, and 140 million yuan, and it was determined that the defendant and others had falsified performance and other acts。

According to the inflated profit mentioned in the “Administrative Penalty Decision” mentioned above, the plaintiff recounted the net profit after deducting non-recurring profit and loss during the performance commitment period of Singapore Airlines Titanium Technology. According to statistics, the net profit after deducting non-recurring profit and loss during the performance commitment period (hereinafter referred to as “actual net profit”) was: -170 million yuan, -438 million yuan, and -259 million yuan respectively, far below the promised net profit of RMB 170 million, 240 million yuan, and 400 million yuan made by the defendants. Therefore, the defendant did not fulfill its performance promises during the performance commitment period. According to the relevant agreements signed by the parties, Obituary The plaintiff should be compensated.

Since the actual net profit of Singapore Airlines Titanium Technology during the performance commitment period was far lower than the promised net profit, according to the relevant agreements signed by all parties, the defendant should pay compensation to the plaintiff. However, up to now, the defendant has not taken active and effective measures to fulfill the obligation of compensation, and the plaintiff filed a lawsuit with the Chengdu Intermediate People's Court in Sichuan Province to protect their legal rights. The lawsuit ordered the defendant to pay a total of RMB 1,963 billion in performance compensation to the plaintiff, etc., and the related lawsuit involved a total amount of about $2,023 billion.