Gaosheng Holdings claim: The court entrusted a third-party institution to account for the losses, and the company has accrued estimated liabilities

On September 27, 2018, Gaosheng Holdings received the Notice of Investigation from the China Securities Regulatory Commission, the Notice of Administrative Penalties and Market Prohibition issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission on October 17, 2019, and the Administrative Penalty Decision issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission on December 24, 2019.

It was found that from March 2017 to July 2018, *ST Gaosheng was suspected of concealing 19 related party transactions. *The facts of st.s. go up are as follows:

1. Gaosheng Holdings failed to disclose the related party transactions with related parties as required

2. Gaosheng Holdings did not disclose in its 2017 annual report the related party transactions guaranteed by related parties.

Gaosheng Holdings concealed major events such as providing guarantees and borrowing funds for related parties of listed companies, and the nature of the behavior was bad, seriously disrupting the order of the securities market and seriously harming the legitimate rights and interests of investors. Accordingly, the SFC imposed a penalty.

【Case Progress】

After the penalty was issued, Mingfeng's team filed a lawsuit with the Wuhan Intermediate People's Court on behalf of the investor against Gaosheng Holdings. After that, Gaosheng Holdings said that the company did not have any office space in Xiantao City, Hubei Province, where the company filed the objection, and that the main office was currently in Chaoyang District, Beijing, so the case was transferred to the Beijing No. 3 Intermediate People's Court for trial.

The transfer to the competent court will not affect the investor's right to sue, the investor v. Gaosheng Holdings case represented by Mingfeng's lawyer team has been heard in the Beijing Third Intermediate Court, and the court has uniformly entrusted a third-party accounting agency to carry out loss accounting, but the accounting results have not yet been issued.

On August 25, 2021, Gaosheng Holdings released the "2021 Semi-Annual Report" to disclose the progress of securities misrepresentation dispute cases: As of the reporting period, the company has received a total of about 220 lawsuits from shareholders, and the amount involved is 36.3924 million yuan, according to the "Legal Opinion" issued by the lawyer in the previous year, due to the existence of systemic risks leading to the decline in stocks, the company can claim that the part that fell by 30% to 40% fell. There is no causal relationship between some of them and the company's misrepresentation, so the company, based on the principle of prudence, made a provision for estimated liabilities in the proportion of 70% in the previous year, totaling 20.3127 million yuan. At present, the case is still being heard in batches and gradually, and the estimated liabilities have not been accrued during the reporting period.