Zhejiang Longsheng (600352): Progress Of External Guarantee

On the evening of July 7, Zhejiang Longsheng (600352) issued an announcement on the litigation progress of the wholly-owned subsidiary:

The litigation stage of the case: the court of appeal of the Republic of Singapore made a judgment.

Party status of the company: Shengda International Capital Co., Ltd., a wholly-owned subsidiary of the company, is the appellant.

Amount involved in the case: the plaintiff Kiri asked Shengda company to purchase 37.57% equity of destar held by Kiri company according to the fair value determined by the third-party accounting firm or evaluation agency agreed by both parties, The Singapore International Commercial Court has ruled that the final valuation of Kiri's 37.57% stake in destar as of the valuation date (July 3, 2018) is $481.6 million. Now, the court of appeal of the Republic of Singapore supports Kiri's claim that the 19% liquidity discount is not applicable to the acquisition of the equity, so it is estimated that the final valuation will increase; At the same time, it supports Kiri's appeal for the court to re-examine the basis of the license fee calculation, which is expected to affect the final valuation.

Whether there will be a negative impact on the profit and loss of the listed company: this lawsuit is mainly a lawsuit between Kiri company and Shengda company, two shareholders of destar company. It will not have a significant impact on the normal operation of destar company, nor will it have a negative impact on the company's profit and loss.