Jinjiang Group: Applications For A And Other Achievements Are Not Valid For Gambling.

In March 11th, Shenzhen textile A (000045.SZ) announced that the company was informed recently that Hangzhou Jinjiang Group Co., Ltd. (hereinafter referred to as "Jinjiang group") has submitted arbitration to Shenzhen international arbitration court in accordance with the dispute settlement method agreed with the company's "cooperation agreement". In March 9, 2020, the company received the 2020 arbitration letter from the Shenzhen international arbitration court, No. 452, -2, and the arbitration application filed by the Jinjiang group as an applicant.

According to the applicant, the wholly state-owned enterprise management system, which is still under the control of Sheng Textile A and its actual control, is actually unable to dominate the operation of Sheng Bo optoelectronics, and can not give full play to the advantages of the applicant in terms of system, mechanism, industry, management, and the successful experience of industry integration. Production line linkage, industrial integration and resource integration have led to the failure to achieve the purpose of the cooperation agreement. The contract foundation of the applicant's performance commitment and profit supplement has disappeared. Under such circumstances, it is obviously unfair to the applicant and the purpose of the contract can not be achieved if the performance commitments and complemental obligations under the agreement of cooperation continue to be fulfilled.

Capital state understands that Shenzhen textile A introduced the Jinjiang group as a strategic investor at the end of 2016 for Shengbo optoelectronic capital and stock expansion. The Company Limited, Shengbo optoelectronics, Jinjiang group and Jinjiang group limited partnership as the actual controller. Hangzhou Jinhang equity investment fund partnership enterprise (limited partnership) (hereinafter referred to as "Jinhang investment") jointly signed the Shenzhen Shengbo optoelectronics branch. The company's capital investment agreement, Jinhang investment as the main body of the capital to subscribe Sheng Bo photoelectric 40% stake, the capital increase is RMB 1 billion 352 million 640 thousand yuan.

Shenzhen textile A signed a cooperation agreement with Jinjiang group and Jinhang investment on the premise of consensus of Sheng Bo optoelectronics management and development in the future. The Jinjiang group made a commitment to Sheng Bo optoelectronics. According to the 3.1 articles of the cooperation agreement, the specific situation is as follows: sales revenue and net profit in 2017, 2018 and 2019 are no less than RMB 1 billion 500 million yuan, respectively. 000 yuan, 2 billion yuan /1 billion yuan, 2 billion 500 million yuan /1.5 billion yuan, in principle, the proportion of sales revenue of polaroid and related optical coatings products in total income is not less than 70% in 2017, and not less than 80% after 2018.

If the above performance is not realized, the Jinjiang group shall make up cash in the net profit portion within 10 days from the date of the completion of the annual sales revenue and annual net profit. In addition, according to the 6.4 article of the cooperation agreement, the Jinjiang group can not fulfill the performance commitments agreed upon in this Agreement and does not make up the difference in cash with the company in accordance with this agreement. Shenzhen textile A not only has the right to investigate the major breach responsibility of the Jinjiang group, but also has the right to take the measures to terminate this Agreement and dismiss the general manager recommended by Jinhang investment. However, if the Jinjiang group fails to implement the performance commitments agreed upon in this agreement due to the existence of the existing problems of Sheng Bo before the capital increase, the Jinjiang group shall not fulfill the obligation of cash supplement or constitute a major breach of the Jinjiang group, and the Jinjiang group shall have the right to exercise the right of share transfer under the agreement of performance agreement stipulated in this agreement.

Shenzhen textile A is a high-tech industry represented by R & D, production and marketing of polarizer used in liquid crystal display. The company went public in August 15, 1994.