Recently, the major litigation of Risen announced, concerning the “product purchase and sale contract breaching dispute” with ST Super Day, Risen has respectively put forward litigations to Zhejiang Ninghai County People’s Court and the Intermediate People’s Court of Ningbo City. Recently, the company has received two court’s acceptance notices. The notice announced that, once ST Super Day had signed a number of CR-DC1110-006 and CR-DC1111-002 these two product purchase and sales contracts, and the legal representatives of * ST Super Day called Ni Kailu and Zhong Xuexian had the guarantee of joint responsibility. But until now, * ST Super Day has failed to pay the company’s money, so the three sides talked above constitute the breach of contract. Therefore, Risen request to sentence * ST Super Day to pay the above two contracts’s payments and the liquidation payments totally 135 million Yuan, and Ni Kailu and Zhong Xuexian had to take on the joint guarantee responsibility.
At the same time, Risen said that the case has not been heard publicly yet, so currently, the performance impact can not be judged. In 2012, in line with the principle of prudence, the Company has prepared the receivable balance of provision and accounts totally 84,173,700 Yuan for *ST Super Day.
