Boshen Tools Co., Ltd. Litigation Notice

Abstract The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the contents of the announcement, and there are no false records, misleading statements or major omissions. I. The basic situation of this lawsuit acceptance Boshen Tools Co., Ltd. (hereinafter referred to as "company &...
The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the contents of the announcement, and there are no false records, misleading statements or major omissions.

I. Basic information on the acceptance of this lawsuit
Boshen Tools Co., Ltd. (hereinafter referred to as “Company” or “Company”) is associated with Jiangxi Jiajia Ceramics Co., Ltd. (hereinafter referred to as “Jiangxi Jiajia”) and Sichuan Meilaiya Ceramics Co., Ltd. (hereinafter referred to as “Sichuan Meilai” Ya"), Sichuan Keda Ceramics Co., Ltd. (hereinafter referred to as "Sichuan Keda"), Jiangxi Oerma Ceramics Co., Ltd. (hereinafter referred to as "Jiangxi Orma") contract dispute case, to Shijiazhuang High-tech Industrial Development Zone People's Court File a lawsuit. Recently, the company received the Shijiazhuang High-tech Industrial Development Zone People's Court (2016) 冀 0191 Minchuzi No. 707, (2016) 冀 0191 Minchuzi No. 708, (2016) 冀 0191 Minchuzi No. 709, (2016) 冀0191 Minchuzi No. 710 case acceptance notice, the acceptance date is May 12, 2016.

II. Basic information about the case (1) The company v. Jiangxi Jiajia contract dispute case
Plaintiff: Boshen Tools Co., Ltd. Address: No. 10, Haihe Road, High-tech Zone, Shijiazhuang Legal Representative: Chen Huairong, Chairman of the Board of the Company.
Defendant: Jiangxi Jiajia Ceramics Co., Ltd.: The legal representative of Yuanshangang Industrial Park, Dongxiang Economic Development Zone, Jiangxi: Zhu Jianmin, general manager of the company.
Claims:
1. The defendant is ordered to pay the plaintiff's contracting fee of 4,833,721.00 yuan, and pay the interest calculated from the period of April 27, 2015 to the date of payment, based on the loan interest rate of the People's Bank of China for the same period;
2. The litigation fee in this case is borne by the defendant.
Facts and reasons:
On March 29, 2014, the plaintiff and the defendant signed the “Construction of Polishing Wire Grinding Tool (Small Package)”, stipulated that the plaintiff contracted the use of diamond abrasive tools and silicon carbide grinding blocks in the production of the defender tile polishing line; The contractual fee settlement cycle shall be paid before the 10th of the month after the account is posted; the plaintiff's contract fee shall be settled within five days after the termination of the contract, and the defendant shall not owe the contract fee on any excuse or reason; the parties also stipulate other rights and obligations.
After the contract was signed, the plaintiff fulfilled the corresponding obligations according to the contract, but the defendant did not pay the contracting fee on time. After the termination of the contract, as of April 26, 2015, the defendant accumulatively defaulted the plaintiff's contracting fee of 4,833,721.00 yuan. The plaintiff reminded him several times that the defendant refused to pay without justifiable reasons.

(II) The company v. Sichuan Meilaiya contract dispute case
Plaintiff: Boshen Tools Co., Ltd. Address: No. 10, Haihe Road, High-tech Zone, Shijiazhuang Legal Representative: Chen Huairong, Chairman of the Board of the Company.
Defendant: Sichuan Meilaiya Ceramics Co., Ltd. Residence: No. 66, Yingbin Avenue, Hongchuan Town, Hongya County, Sichuan Province Legal representative: Zhang Renzhi, general manager of the company.
Claims:
1. The defendant is ordered to pay the plaintiff's contracting fee of RMB 2,628,016.01, and pay the interest calculated from the date of the payment from January 16, 2015 to the date of payment, at the same period of the People's Bank of China;
2. The litigation fee in this case is borne by the defendant.
Facts and reasons:
On November 1, 2013, the plaintiff and the defendant signed the “Construction of Polishing Wire Grinding Tool (Small Package)”, stipulated that the plaintiff contracted the use of diamond abrasive tools and silicon carbide grinding blocks in the production of the defender tile polishing line; The contractual fee settlement cycle shall be settled before the last Thursday of the following month; the plaintiff's contracting fee shall be settled within five days after the termination of the contract, and the defendant shall not owe the contracting fee by any excuse or reason; the parties also stipulate other rights and obligations.
After the contract was signed, the plaintiff fulfilled the corresponding obligations according to the contract, but the defendant did not pay the contract fee on time. After the contract was terminated, as of January 15, 2015, the defendant accumulatively defaulted the contractor’s contract fee of RMB 2,628,016.01. The plaintiff reminded him several times that the defendant refused to pay without justifiable reasons.

(III) The company v. Sichuan Keda contract dispute case
Plaintiff: Boshen Tools Co., Ltd. Address: No. 10, Haihe Road, High-tech Zone, Shijiazhuang Legal Representative: Chen Huairong, Chairman of the Board of the Company.
Defendant: Sichuan Keda Ceramics Co., Ltd. residence: Legal representative of 9th Fengqiao Village, Huangtu Town, Jiajiang County, Sichuan Province: Wang Shuyun, general manager of the company.
Claims:
1. The defendant is ordered to pay the plaintiff's contracting fee of 932,606.74 yuan, and pay the interest calculated from the period of September 6, 2014 to the date of payment, according to the loan interest rate of the People's Bank of China for the same period;
2. The litigation fee in this case is borne by the defendant.
Facts and reasons:
On September 9, 2013, the plaintiff and the defendant signed the “Construction Contract for Polishing Wire Abrasives”, stipulating that the plaintiff contracted the use of abrasive consumables required for the production of the tile polishing line of the defendant; each natural month is the contracting fee settlement cycle. The next month's statistics will be settled within 10 days after the order; the defendant shall not owe the contract fee on any excuse or reason; the parties also stipulate other rights and obligations.
After the contract was signed, the plaintiff fulfilled the corresponding obligations according to the contract, but the defendant did not pay the contract fee on time. After the contract was terminated, as of September 5, 2014, the defendant accumulatively defaulted the plaintiff contract fee of 932,606.74 yuan. The plaintiff reminded him several times that the defendant refused to pay without justifiable reasons.

(IV) The company v. Jiangxi Orma contract dispute case
Plaintiff: Boshen Tools Co., Ltd. Address: No. 10, Haihe Road, High-tech Zone, Shijiazhuang Legal Representative: Chen Huairong, Chairman of the Board of the Company.
Defendant: Jiangxi Oerma Ceramics Co., Ltd.: The legal representative of Lianggang Industrial Park, Yifeng County, Jiangxi Province: Zheng Cunjin, general manager of the company.
Claims:
1. The defendant is ordered to pay the plaintiff's contracting fee of RMB 3,673,995.48, and pay the interest calculated from the period of August 1, 2015 to the date of payment, and the interest rate calculated by the People's Bank of China for the same period;
2. The litigation fee in this case is borne by the defendant.
Facts and reasons:
On May 1, 2012, the plaintiff and the defendant signed the “Construction Contract for Polishing Wire Abrasives”, stipulating that the plaintiff contracted the use of abrasive tools such as diamond rollers, edging wheels and diamond grinding blocks in the production of the defender tile polishing line; A natural month is the contracting fee settlement cycle, and the plaintiff's contracting fee is settled within the month of termination of cooperation; the parties also stipulate other rights and obligations.
After the contract was signed, the plaintiff fulfilled the corresponding obligations according to the contract, but the defendant did not pay the contracting fee on time. After the contract was terminated, as of July 31, 2015, the defendant accumulatively defaulted the plaintiff's contracting fee of RMB 3,673,995.48. The plaintiff reminded him several times that the defendant refused to pay without justifiable reasons.

3. Other undisclosed litigations and arbitrations
Except for the above litigation matters, the company (including the holding subsidiaries) has no other major lawsuits or arbitrations that should be disclosed but not disclosed.

Fourth, the possible impact of this lawsuit on the company's current profit or future profit
The company has recovered from the business contract accounts v. Jiangxi Jiajia, Sichuan Melalaya, Sichuan Keda, Jiangxi Oerma and other four companies, the total amount of litigation is 12,068,339.23 yuan, and the accumulated provision for bad debts has reached 3,741,620.58 yuan by the end of 2015. . The impact of this lawsuit on the company's 2016 profit is uncertain.
The company will actively take relevant measures to reduce losses; and timely fulfill its information disclosure obligations according to the progress of this lawsuit, and investors are advised to pay attention to investment risks.

V. Documents for reference
1. Civil complaints of Boshen Tools Co., Ltd.;
2. The People's Court of Shijiazhuang High-tech Industrial Development Zone accepted the notice.

Special announcement.
Board of Directors of Boshen Tools Co., Ltd. May 31, 2016

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