Cheng Loong : Supplementary 2019/02/01 On behalf of the subsidiary, Winvantage Corporation, it's announced arbitration results with sales of 100% stake of Ever Onward Corporation

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Provided by: Cheng Loong Corporation
SEQ_NO	1	Date of announcement	2022/07/26	Time of announcement	15:48:50
Subject	Supplementary 2019/02/01 On behalf of the subsidiary, Winvantage Corporation, it's announced arbitration results with sales of 100% stake of Ever Onward Corporation
Date of events	2022/07/26	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/07/26 2.Company name:Winvantage Corporation 3.Relationship to the Company (please enter "head office" or "subsidiaries"):subsidiaries 4.Reciprocal shareholding ratios:The Company owns 84.18% stake of Winvantage Corporation 5.Cause of occurrence: 1.The Company's subsidiary, Winvantage Corporation, upon the resolution of the Board of Directors on January 16, 2018, decided to sell the stake of Winvantage's 100% reinvestment, Ever Onward Corporation and the reinvestments thereof, Hong Kong Chung Loong Limited and Shanghai Chung Loong Paper Co., Ltd., to the wholly owned subsidiaries of China Vanke Co., Ltd., namely Sinobird Holding Limited and Hybest (BVI) Company Limited, with the guarantor, Vanke Property (Hong Kong) Limited. The transaction has completed the registration of changes in Q1, 2018, and the disposal gains were recognized. 2.For the aforesaid stake transaction, 80% of the total price, or CNY 1,048,000 thousand was received; but the buyer has neither settled the third and fourth installment nor made up the deficient payment according to the share transaction agreement until now. On January 31, 2019, the buyer together with its guarantor also filed the arbitration petition to Hong Kong International Arbitration Centre asking for arbitration, claiming that the stake transaction agreement shall be invalid and revoked. Winvantage Corporation counterclaimed that the buyer and its guarantor shall pay the third and fourth installment with interests. 3.The arbitration tribunal ruled the arbitration conclusively on April 13, 2022, dismissing the applicant's claim, and ruled that the buyer and its guarantor shall assume the joint and several liability of performing the agreement. 4.The buyer has paid the third and fourth installments and the deficient payments amount of CNY 289,282,193.26 in full on May 19, 2022 and plus the deferred interests amount of CNY 177,204,306.49. After deducting the buyer's withholding tax amount of CNY 18,239,724.10, Winvantage Corporation actually received the amount of CNY 448,246,775.65 (equivalent to USD 66,484,741.50). 5.The arbitration tribunal ruled the arbitration conclusively on July 25, 2022, ruling that the buyer and its guarantor shall pay the arbitration fees of the lawyers, expert witnesses and arbitration tribunal totaled USD 3,040,476.65, CNY 400,000 and HKD 4,727,458 for Winvantage Corporation. 6.Countermeasures:The buyer and its guarantor will be requested to pay the payables as soon as possible, per the arbitration decision. 7.Any other matters that need to be specified:None