On January 13th, Capital Bang learned that 688697.SH, a company of Science and Technology Innovation Board, released an announcement on the progress of the lawsuit.

Plaintiff: Ningbo Huasheng Auto parts Co., Ltd. (hereinafter referred to as "Ningbo Huasheng") defendant: Niuwei numerical Control equipment (Suzhou) Co., Ltd. (hereinafter referred to as "the company") defendant: Ningbo Beidou Star Machinery Co., Ltd. (hereinafter referred to as "Beidou Star").

On March 7, 2014, the company (as seller), Ningbo Huasheng (as buyer) and Beidou Xing (as seller and distributor) signed "equipment purchase contract", "Technical Agreement", "pre-acceptance Agreement" and "final acceptance Agreement". And signed a supplementary agreement on May 14, 2015, stipulating that Ningbo Huasheng will purchase four automation equipment production lines from the company and Beidou Star (hereinafter referred to as "the equipment involved"). The total contract amount is 20.68 million yuan (including VAT). On March 26th, Ningbo Huasheng made an advance payment of 6.204 million yuan to the Big Dipper.

The plaintiff held that the defendant failed to perform the obligations of delivery, installation, testing and so on. In order to match the installation and commissioning of the equipment involved in the case, the plaintiff spent a lot of money. The defendant delayed performance, and the production line has been in the commissioning stage can not achieve production, not only led to delayed production, but also affected the normal performance of the plaintiff's military products. The defendant's breach of contract has caused great harm to the normal production and operation order of the plaintiff as well as the image and reputation of the company. Based on the above situation, Ningbo Huasheng filed a lawsuit with the Intermediate people's Court of Ningbo City, Zhejiang Province on October 27, 2020.

The main claims are as follows:

1. Rescind the "equipment purchase contract", "Technical Agreement", "Technical Agreement", "pre-acceptance Agreement" and "final acceptance Agreement" signed with the company and Big Dipper.

two。 The company and the Big Dipper refunded 6204000 yuan in advance of the contract paid by Ningbo Huasheng and compensated for the loss of interest (calculated on the basis of 6204000 yuan according to the benchmark interest rate of similar loans announced by the people's Bank of China for the same period from March 26 to August 19, 2019. Interest and interest according to the quoted rate of the loan market announced by the National Interbank lending Center from August 20 to the date of actual completion)

3. The company and the Big Dipper compensate Ningbo Huasheng for the direct loss of 10960151.92 yuan and the available profit loss of 190 million yuan.[注];

4. The company and the Big Dipper shall dispose of the production line equipment stored in Ningbo and Washington within a time limit, and the related expenses shall be borne by the company and the Big Dipper.

5. The company and the Big Dipper bear the litigation costs in this case.

[注]The original third claim was that the company and the Big Dipper compensated Ningbo Huasheng for a direct loss of 24131309.03 yuan and a loss of available benefits of 350 million yuan, and later the plaintiff changed and reduced the third claim.

Recently, the company received a civil judgment issued by the Intermediate people's Court of Ningbo City, Zhejiang Province ((2020) Zhejiang 02 No. 1253 at the beginning of the Republic of China). The judgment is as follows:

1. Rescind the "equipment purchase contract" and "Supplementary Agreement" signed between Ningbo Huasheng and the company and Beidou Star, and the "Technical Agreement", "pre-acceptance Agreement" and "final acceptance Agreement" signed between Ningbo Huasheng and the company.

two。 The company and Big Dipper will return 6204000 yuan of advance payment to Ningbo Huasheng within 10 days from the effective date of this judgment.

3. The company and the Big Dipper shall indemnify Ningbo Huasheng from March 26th to the date of performance determined by this judgment within ten days from March 26th to the date of performance determined by this judgment on the basis of 6204000 yuan (the interest loss before August 19, 2019 shall be calculated according to the loan benchmark interest rate announced by the people's Bank of China for the same period; after August 20, 2019 shall be calculated according to the quoted rate of the loan market announced by the National Interbank lending Center for the same period)

4. The company and the Big Dipper compensate Ningbo Huasheng for other economic losses of 1.5 million yuan within 10 days from the effective date of this judgment.

5. The company and Beidou Star Machine shall retrieve the equipment involved in the case within 60 days from the effective date of this judgment, and the relevant expenses related to demolition and recovery shall be borne by the company and Big Dipper Machine themselves. Ningbo Huasheng will give necessary cooperation and assistance.

6. Reject other claims of Ningbo Huasheng

7. The case acceptance fee and property preservation fee totaled 1091010 yuan, which was borne by the plaintiff Ningbo Huasheng 1037223 yuan, and the defendant company and the Big Dipper shared 53787 yuan.

The case ruled to terminate the relevant contracts and agreements, and the defendant returned the advance collection, repaid interest, compensated for economic losses of 1.5 million yuan and took back the equipment involved. The company has set aside an estimated liability of 7.8818 million yuan, the residual value of the equipment involved in the case and the remaining recourse against the co-defendant Big Dipper. Based on the principle of prudence, as this case is a judgment of first instance, both parties to the case can appeal within the prescribed time limit, not the final execution result. There is uncertainty in the final litigation and enforcement results, and the impact on the company's current or post-period profits and losses shall prevail on the actual execution results.