SinaFinancial News on November 15, * ST Shencheng (Rights Protection) issued a notice that * ST Shencheng and its wholly-owned subsidiary China International and its controlling shareholders recently received a "civil complaint" served by the Beijing No. 2 Intermediate people's Court. The lawsuit is * ST Shencheng andChina CITIC Bank CorporationThe amount involved in the dispute over the right of recovery is 50.85 million. The case has not yet been heard, and the specific matters of litigation are as follows: (* ST Divine CityEntrance for safeguarding rights)

On November 13, 2017, Shenzhou International and China CITIC Bank Corporation signed the "letter of guarantee Credit Line Agreement", which agreed to a credit line of 220 million. On the same day, * ST Shencheng and controlling shareholder Chen signed a "maximum guarantee contract" with China CITIC Bank Corporation to guarantee joint and several liability for the above-mentioned credit. The beneficiary OxleyGem (Cambodia) Co.,Ltd, through the agency bank BANKOFCHINA (HONGKONG), PHNOMPENH2BRANCH made a claim against the plaintiff China CITIC Bank Corporation on June 27th, 2019, demanding that China CITIC Bank Corporation pay 98 million to him in accordance with the performance guarantee; China CITIC Bank Corporation sent a "notice letter" to * ST Shencheng on July 29th, 2019. As of August 7, 2019, China CITIC Bank Corporation has not yet received the deposit that should be paid by * ST Shencheng. According to the agreement, China CITIC Bank Corporation has paid 98 million of the amount of the guarantee and 196700 of the service fee of the agency bank on August 12, 2019. On August 13, 2019, China CITIC Bank Corporation deducted 48.4819 million of the Shenzhou International margin according to the exchange rate of 7.081; in the end, the amount of advance actually incurred by China CITIC Bank Corporation was 50.8511 million. * ST Shencheng and its wholly-owned subsidiary Shenzhou International and its controlling shareholders failed to settle the advance of the plaintiff's letter of guarantee in accordance with the letter of guarantee Agreement, so they were sued to the court.

* the ST Shencheng announcement also mentioned the latest progress of three litigation cases previously announced by the company, namely, the bill recourse dispute of Shenzhen Yi'an factoring Co., Ltd., the purchase and sale contract dispute of Beijing ZTE Guoji Trading Co., Ltd., and the loan contract dispute of Li Qiaoli, as well as the major litigation and arbitration matters not yet disclosed by the company before this announcement.

* ST Shencheng said that the relevant litigation may have an adverse impact on the company's production and operating activities, as well as current and post-term profits. As the amount of the subject matter, liquidated damages, litigation fees, preservation fees and other fees of some open cases can only be determined after judicial organs or arbitration institutions adjudicate or mediate the case, the company is currently unable to judge the specific impact on current and post-term profits. The company will closely follow the follow-up progress of the above cases, fulfill its information disclosure obligations in a timely manner, and respectfully ask investors to pay attention to investment risks.

Responsible Editor: company observation