Shanghai Bank: Sue Shenzhen Fangrui for recovery of 3.08 billion yuan loan principal and interest

Shanghai Bank announced that in January 2019, Putuo Branch loaned 3.134 billion yuan to Shenzhen Fangrui, and as of the date of filing, Shenzhen Fangrui still owes 3.008 billion yuan in principal and interest. Due to the failure of Shenzhen Fangrui to fulfill its contractual obligations, Putuo Branch declared the loan due in advance and filed a lawsuit with the Shanghai Financial Court, requesting Shenzhen Fangrui to repay the principal and interest of the loan, with the proceeds from the disposal of related equity being given priority for repayment, and Shanghai Haoquan etc. bearing joint and several liability for repayment. As of the disclosure date of the announcement, the lawsuit has not been heard in court, and it is expected to have a certain negative impact on the company's financial performance.