Huamao (000850): Progress Of Litigation Matters

Anhui Huamao Textile Co., Ltd

The company and all members of the board of directors guarantee that the contents of information disclosure are true, accurate and complete, and there are no false records, misleading statements or major omissions.

Special tips:

1. Litigation stage of the case: judgment of the second instance

2. Party status of listed company: plaintiff

3. Amount involved: 0

4. Impact on the profit and loss of listed companies: no effect

I. Basic information on the acceptance of the litigation matters

Date of acceptance: December 23, 2021 case number: (2021) new 28 Minzhong No. 1533 plaintiff: Anhui Huamao Textile Co., Ltd. entrusted litigation agent: Luo Zhaohui, employee of the company; Cui Aiguo, lawyer of Anhui zhongtianren law firm, defendant: Xinjiang Lihua (Group) Co., Ltd. entrusted litigation agent: Wu Bin, lawyer of Xinjiang Tianxue law firm name: Intermediate People's Court of Bayingolin Mongolian Autonomous Prefecture, Xinjiang Uygur Autonomous Region, where the litigation institution is located: Bayingolin Mongolian Autonomous Prefecture, Xinjiang Uygur Autonomous Region

2. Basic information about the case

In November 2020, the company submitted a civil complaint to the people's Court of Korla City, Xinjiang, and filed a lawsuit for the follow-up situation of the disposal of the equity of Xinjiang Lihua (Group) Co., Ltd. by way of directional capital reduction, which was deliberated and approved by the company on April 20, 2020, Request for a decree to allow the company to consult Xinjiang Lihua's accounting books (including accounting general ledger, Sub Ledger, journal and other auxiliary account books) and accounting vouchers (including bookkeeping vouchers, relevant original vouchers and relevant materials recorded as attachments of original vouchers for future reference).

For details, please refer to the announcement on January 31, 20201 and cninfo (www.cn) on January 31, 20220 and cninfo The "important matters" section of the semi annual report 2021 and the progress announcement on litigation matters. (Announcement No.: 2020-057, 2021-013, 2021-036, 2021-039).

3、 Judgment

The intermediate people's Court of Bayingolin Mongolian Autonomous Prefecture of Xinjiang Uygur Autonomous Region recently issued a civil ruling [(2021) Xin 28 min Zhong 1533], which mainly includes the following contents:

The appeal of Anhui Huamao Textile Co., Ltd. can not be established. The first instance ruling found that the facts were clear and the application of law was correct. According to Article 7 of the provisions of the Supreme People's Court on Several Issues concerning the application of the company law of the people's Republic of China (4), Article 90 of the interpretation of the Supreme People's Court on the application of the Civil Procedure Law of the people's Republic of China Article 177, paragraph 1, paragraph 1 and Article 178 of the Civil Procedure Law of the people's Republic of China stipulates that the appeal shall be rejected and the original ruling shall be upheld. This ruling is final.

4. Other undisclosed litigation and arbitration matters

As of the date of this announcement, the amount of small claims and arbitration cases not disclosed by the company and its subsidiaries amounted to RMB 19.0822 million, accounting for 0.44% of the company's latest audited net assets attributable to shareholders of the listed company.

In addition, the company and its subsidiaries have no other litigation and arbitration matters that should be disclosed but not disclosed.

V. the possible impact of the announced litigation on the current or future profits of the company

This judgment belongs to the second instance judgment. For this judgment, the company intends to apply to the higher people's Court of Xinjiang Uygur Autonomous Region for retrial.

As of the date of this announcement, the above litigation has no impact on the current business performance of the company, and the subsequent impact of the litigation is uncertain. The company will pay close attention to and attach great importance to the follow-up progress of the above matters, actively take various measures to safeguard the legitimate rights and interests of the company and investors, and timely fulfill the obligation of information disclosure. The information disclosure media designated by the company, such as China Securities Journal, securities times and www.cninfo.com.cn, please pay attention to the investment risks.

6、 Documents for reference

Civil ruling of intermediate people's Court of bayingolen Mongolian Autonomous Prefecture of Xinjiang Uygur Autonomous Region (2021) Xin 28 min Zhong 1533.

It is hereby announced

Board of directors of Anhui Huamao Textile Co., Ltd. February 11, 2002