Zhitong Financial APP News, Zhengtong Motors (01728) announced that it will be announced on the evening of December 17, 2021. The company was told that Ningbo Yuchen Fengze Equity Investment Partnership (limited partnership) (plaintiff) as the beneficiary and against, among other things, Beijing Guangze Real Estate Development Co., Ltd. (Beijing Guangze), Beijing Zun Baocheng Real Estate Co., Ltd. (Beijing Zun Baocheng), The court judgment (first instance judgment) of Beijing Baoze Automotive Technology Development Co., Ltd. (Beijing Baoze) and Wuhan Zhengtong United Industrial Investment Group Co., Ltd. (Wuhan Zhengtong) has been awarded by the Ningbo Intermediate people's Court of Zhejiang Province. The plaintiff's associates in mainland China also filed a lawsuit against a loan with an outstanding principal of RMB 1.35 billion (in a separate case), requiring Wuhan Zhengtong to bear joint and several guarantee liability. The separate lawsuit has not yet been decided.
Beijing Guangze is a majority-controlled company indirectly held by the family members of Wang Muqing, the company's executive director. Therefore, according to the listing rules, Bei Guangze is a related person of the company. Beijing Guangze holds 8.6758% and 4.3478% shares in Beijing Zun Baocheng and Beijing Baoze respectively. Wuhan Zhengtong is an indirect wholly-owned subsidiary of the company.
According to the judgment of the first instance, Beijing Guangze shall pay the plaintiff the principal amount of RMB 420 million together with interest (this amount has not yet been finally determined), including the repurchase amount of the plaintiff's equity investments in Beijing Zun Baocheng and Beijing Baoze. As Wuhan Zhengtong concluded a difference supplement agreement on the outstanding amount owed to the plaintiff by Beijing Guangze in March 2016 (first signed) and March 2020 (extension), the court of first instance also required that Wuhan Zhengtong should bear joint and several guarantee liability for the above-mentioned amount. The above debts of Beijing Guangze have been secured by, among other things, the real estate owned by Beijing Zun Baocheng and Beijing Baoze. The collateral is also used as collateral for outstanding loans under separate actions. According to the assessment issued by du Ming United Real Estate Evaluation (Beijing) Co., Ltd. on March 4, 2020, the value of the collateral is about 3.218 billion yuan on December 30, 2019, and it is not clear whether or when the collateral will be realized.
The company's existing board of directors includes directors appointed in September 2021 after the acquisition of 29.90% of the company's shares by Xiamen International Trade Holdings Group Co., Ltd., the announcement said. When Wuhan Zhengtong entered into documents such as the difference replenishment Agreement in March 2016 (first signed) and March 2020 (extension period), it may constitute non-exempt financial support to one of the company's directors and his associates or his associates at the relevant time, therefore, it may constitute that the company has not disclosed related party transactions at the relevant time. The current board of directors of the company needs additional time to make its enquiries on documents such as the difference replenishment Agreement and whether the company has complied with the relevant compliance requirements under the listing rules at that time.
At present, the judgment of the first instance has not yet taken effect, and Wuhan Zhengtong will appeal according to law.