Announcement On Litigation Matters Of Subsidiary Companies In Jiangsu

All members of the company and the board of directors guarantee that the contents of the information disclosure are true, accurate and complete, without false records, misleading statements or major omissions.

I. overview

The company disclosed its subsidiary company in September 15, 2011. Litigation matters Notice (Bulletin number: 2012-022). In April 25, 2012, the company received a civil mediation letter from the people's Court of Tongzhou District, Nantong, on the above litigation matters (No. 2011, No. 0183). The following are the following points:

Two. The basic situation of this lawsuit.

In September 2011, Nantong Baosheng Textile Co., Ltd. (hereinafter referred to as "Nantong Baosheng") and its wholly owned subsidiary, Nantong Austrian Garments Co., Ltd. (hereinafter referred to as "Nantong Olympic source") clothing. Fabric trading Contract dispute proceedings, the object of litigation is 857188.47 yuan, Nantong Bao Sheng litigation Nantong Austria yuan to pay the amount owed 839588.47 yuan and overdue interest 17600 yuan. Nantong Austrian yuan believes that the late delivery of the contract, the fabric delivered by Bao Sheng in Nantong has serious quality problems. The customer requests that the products with quality problems be patched and sold at a discount, which has caused some economic losses to Nantong Austrian source. The total cost of compensation, repair and discount of Nantong Baosheng compensation is 1715500.76 yuan, and counterclaim is filed.

After many mediation by the people's Court of Tongzhou District, Nantong, Nantong Baosheng and Nantong Austrian yuan voluntarily reached a mediation agreement in April 19, 2012.

Three, the main contents of civil mediation in court

1, Nantong Austrian Garments Co., Ltd. owed to Nantong Baosheng Textile Co., Ltd. 839588.47 yuan.

2, Nantong Baosheng Textile Co., Ltd., because of the quality of the knitted jersey fabrics that are knitted by the company for its hard handle and uneven dyeing, is compensated for 320000 yuan by Nantong Ao yuan Garments Co., Ltd.

After the above two balances, Nantong Ao yuan Garments Co., Ltd. paid 519588.47 yuan to plaintiff Nantong Baosheng Textile Co., Ltd. before May 10, 2012.

3, Nantong Baosheng Textile Co., Ltd. and Nantong Ao yuan Garments Co., Ltd. give up other claims.

4, the mediation agreement shall be legally effective after the parties have signed or sealed the mediation agreement.

The cost of case acceptance is reduced by half and 6218 yuan, and the countercharge is 10120 yuan. The total cost is 16338 yuan, which is 6218 yuan from Nantong Baosheng company and is 10120 yuan borne by Nantong Austrian yuan company.

The above agreement is in conformity with the relevant laws and regulations, and the people's Court of Tongzhou District, Nantong City confirms it. If a party refuses to sign the mediation agreement, it will not affect the validity of the above mediation agreement. If one party fails to carry out the above mediation agreement, the other party may apply to the people's court for enforcement in accordance with this conciliation statement.

Four. Other litigation and arbitration matters that have not yet been disclosed.

Neither the company nor all the controlling subsidiaries had any other litigation or arbitration matters before the announcement.

Five, the impact of this litigation mediation on the company's current profits.

The indirect costs such as repairs made by the company due to product quality problems have been included in the cost of 2012. According to the contents of the above civil mediation documents and preliminary calculations by the financial department, the impact of the litigation conciliation on the profits of the company during the current period is about 150 thousand yuan (including the countercharge 10120 yuan). The company drew the attention of investors to investment risks.

Jiangsu Kim Feida dress Limited company

Director

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