The court ordered the company to stop infringing on the patent rights of Huntsman's advanced materials, such as "azo dyes and preparation methods and uses".

In January 7th, Zhejiang Longsheng (600352.SH) announced that the company had recently received the "civil judgment" of the Shanghai Higher People's Court [(2015) Hu Gao Min three (know) No. second].

The company and its controlling shareholder, Zhejiang Keyong Chemical Co., Ltd. and Shanghai KELONG Dyestuff Industry Co., Ltd., respectively, received the civil complaint in September 2015 and October by the Shanghai Higher People's Court ("Shanghai High Court") [case number (2015) Hu Gao Min three (knowledge) No. second]. Plaintiff Huntsman advanced materials (Switzerland) Co., Ltd. filed a civil lawsuit with the higher people's Court of Shanghai, and filed the following suit:

1, the defendant shall be ordered to stop immediately infringing upon the patent "azo dyes and their preparation methods and uses", including stopping production, selling and promising to sell the accused infringing products.

2, the defendant was ordered to compensate the plaintiff for the economic loss of RMB 230 million yuan.

3, the defendant shall bear all the litigation costs of the case and the reasonable expenses of the lawyer's fees, notarization fees, appraisal fees, etc., which the plaintiff has spent to stop the defendant's infringement, totaling 1 million yuan.

The specific contents are detailed in the announcement of clarification and stock resumption issued by the company on January 16, 2016.

The higher people's Court of Shanghai issued a civil judgment in December 31, 2019. (2015) Shanghai Gao Min three (know) second.

1. Defendant Zhejiang Longsheng group Limited by Share Ltd, Zhejiang Ke Yong Chemical Co., Ltd., Shanghai KELONG Dyestuff Industry Co., Ltd. and Beijing de Fung Technology Co., Ltd. shall immediately stop the infringement of the patent for the "azo dyes and preparation methods and uses" of patent plaintiff advanced material (Switzerland) Co., Ltd. (Patent No. ZL00106403.7) from the date of entry into force of this judgment.

2, the defendant Zhejiang Longsheng group Limited by Share Ltd, Zhejiang Ke Yong Chemical Co., Ltd. and Shanghai KELONG Dyestuff Industry Co., Ltd. shall jointly and severally compensate the plaintiff Huntsman advanced materials (Switzerland) Limited for 14 million days in the ten days from the date of the judgment's entry into force.

3, the defendant Zhejiang Longsheng group Limited by Share Ltd, Zhejiang Ke Yong Chemical Co., Ltd. and Shanghai KELONG Dyestuff Industry Co., Ltd. shall jointly and severally compensate the plaintiff advanced materials (Switzerland) Co., Ltd. for ten days of the cost of the infringement, within 300 thousand days from the date when the judgment comes into force. The reasonable cost is 300 thousand yuan.

4, dismiss other claims of plaintiff Huntsman advanced materials (Switzerland) Limited. Defendant Zhejiang Longsheng group Limited by Share Ltd, Zhejiang Ke Yong Chemical Co., Ltd. and Shanghai KELONG Dyestuff Industry Co., Ltd. jointly undertake 635444 yuan for case acceptance and 880 thousand yuan for forensic appraisal.

If we refuse to accept this judgment, the plaintiff Huntsman advanced materials (Switzerland) Limited can, within thirty days from the date of the judgment, the defendant, Zhejiang Longsheng group Limited by Share Ltd, Zhejiang Ke Yong Chemical Co., Ltd. and Shanghai KELONG Dyestuff Industry Co., Ltd., can submit the petition to the higher people's Court of Shanghai within fifteen days from the date of the service of the judgment, and submit a copy of the number of the other party's appeals to the Supreme People's Court of People's Republic of China.

The amount involved in this lawsuit accounts for a very low proportion of assets and profits in the current period. At the same time, the company and its subsidiaries are no longer producing and selling controversial products, so the judgment will not affect the normal production and operation of the company. The company will entrust an attorney to submit a petition to the higher people's Court of Shanghai within fifteen days from the date of the service of the judgment, and appeal to the Supreme People's Court of People's Republic of China.