Shanghai Sanmao (600689): The Appeal Of The Second Instance Of The Dispute Over Land Lease Contract Of The Subsidiary Company Was Refuted

Shanghai Sanmao (600689) announced on the evening of October 11 that the company's wholly-owned subsidiary Shanghai Sanlian textile printing and dyeing Co., Ltd. (hereinafter referred to as "Sanlian printing and dyeing company") received the civil judgment of Shanghai First Intermediate People's court. The first intermediate people's Court of Shanghai made a second instance judgment. The appellant's appeal is lack of factual and legal basis, which is not supported by the court. According to the regulations, the judgment is as follows: reject the appeal and uphold the original judgment. The case acceptance fee of the second instance was 3296 yuan, which was borne by the appellant Shanghai Sanlian textile printing and dyeing Co., Ltd. This judgment is final.

The company will apply to Shanghai Higher People's court for retrial within the retrial period. According to the result of this judgment, the total amount of land use fee, assessment fee and case acceptance fee payable by the company is about 1.6 million yuan, and the housing compensation amount is 13.46 million yuan. Based on the principle of prudence, the company has made provision for land use fees and other related expenses in 2020 and 2021. It is estimated that the impact of the implementation of the first instance judgment on the current profit and loss of the company is about 5.9 million yuan. The final data shall be subject to the financial data confirmed by audit.