[Caihua News]Youku Resources (02112-HK)Announced, the board of directors was informed by Li Yang, the company's executive director, chairman and CEO, and Cosmo Field Holdings Limited, the controlling shareholder of the company, that it received Industrial Bank Co., Limited (Industrial Bank) A writ of summons against Cosmo Field and Mr. Lee was filed in the Hong Kong High Court on May 15, 2020.

The High Court lawsuit concerned a loan provided by Societe Generale Bank to Cosmo Field, and Mr. Lee acted as a guarantor. According to the High Court lawsuit, Société Générale sued Cosmo Field and Mr Lee for failing to repay the loan (which was a default) of $45,059,154.85.

Currently, Cosmo Field has pledged 752,000,000 shares (50.13% of the company's total issued shares) to Societe Generale as a guarantee for Societe Generale's arrears.

Cosmo Field lent the principal amount of $40,000,000 (shareholder loan) of Societe Generale's arrears to the company in the form of an interest-free loan, and Societe Generale also has the right to require the company to repay the shareholder loan as part of Societe Generale's arrears under the debt transfer agreement, and Cosmo Field has transferred the rights under the shareholder loan to Societe Generale Bank. The Group believes that this default triggered cross-defaults on the Group's other loans and loans. The company's board of directors believes that the default will have a significant adverse impact on the Group's operations.