Announcement of Shanghai Sanmao enterprise (Group) Co., Ltd. on offsetting estimated liabilities

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

1、 Event overview

Shanghai Sanmao import and Export Co., Ltd. (hereinafter referred to as "Sanmao import and Export Co., Ltd.), the former holding subsidiary of Shanghai Sanmao enterprise (Group) Co., Ltd. (hereinafter referred to as" the company "), established a liquidation group in June 2013 due to operational difficulties. Within 6 months before liquidation, the company and its wholly-owned subsidiary Shanghai Sanjin import and Export Co., Ltd. purchased some tangible assets (mainly vehicles, two sets of residential real estate and some office equipment) and intangible assets (local brand trademark) of Sanmao import and export company and its subsidiary Shanghai Dipai Clothing Co., Ltd. As the liquidation of Sanmao import and export company has not been completed, the company expects that there will be the possibility of property delivery obligations in the future. Therefore, the estimated liabilities of RMB 4 million are recognized according to the book value of the above assets at the end of the period. The above matters were deliberated and approved by the fourth meeting of the eighth board of directors of the company and the 2013 annual general meeting of shareholders. In December 2014, the company transferred the equity of Sanmao import and export company to an independent third party through the sale of major assets to completely divest the non-performing assets. In July 2015, the company received a notice from the liquidation group of Sanmao import and export company that the court had accepted the application for bankruptcy liquidation of Shanghai Sanmao import and Export Co., Ltd. ((2015) pmersb No. 8-1). Since then, the bankruptcy work of Sanmao import and export company was carried out by the administrator appointed by the court according to the legal procedures（ For details, please refer to the relevant announcements published in Shanghai Securities Journal, Hong Kong Wenhui and the website of Shanghai Stock Exchange on April 14, May 23, November 5, November 12, November 19, November 26, December 3, December 9, December 18, December 25, December 30, December 31, July 28, 2015 and February 6, 2016)

II. Statement on the write back of estimated liabilities

On July 6, 2021, the company received a notice from the bankruptcy administrator of Sanmao import and Export Co., Ltd. that Shanghai Sanmao import and Export Co., Ltd. has completed the industrial and commercial cancellation of registration. Accordingly, the company offsets the book value of the estimated liabilities related to the event.

III. The impact of the write back of estimated liabilities on the company

The amount of expected liabilities written back this time is RMB 4 million, which will affect the company's current consolidated profit of RMB 4 million. If the data has not been audited, the final impact of the event on the company's current statements shall be subject to the amount confirmed by the accounting firm's annual audit.

It is hereby announced.

Shanghai Sanmao enterprise (Group) Co., Ltd

July 7, 2001