Grand Ocean Retail : An update on outstanding receivables due from Damahua

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Provided by: Grand Ocean Retail Group Limited
SEQ_NO	2	Date of announcement	2022/08/17	Time of announcement	18:03:32
Subject	An update on outstanding receivables due from Damahua
Date of events	2022/08/17	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/08/17 2.Company name:Grand Ocean Retail Group Limited 3.Relationship to the Company (please enter "head office" or "subsidiaries"):head office 4.Reciprocal shareholding ratios:Not applicable 5.Cause of occurrence: An update on outstanding receivables in the amount of NT 270,730 thousand (CNY 61,000thousand) due from Damahua 6.Countermeasures: 1)For receivables of CNY 324 million from Quanzhou Fullshare Group,it has refunded 10% of total investment amount,i.e., CNY 32.4 million,in compliance with our contract before Apr.28,2017,and refunded 40% of total investment amount,i.e.,CNY 129.6 million before Nov.13,2017. The remaining receivables are 50% of the total investment amount,i.e., CNY 162 million. Shenzhen Damahua Investment Co., Ltd. agreed to transfer the creditor's rights of CNY 162 million,The first transfer payment CNY 30 million was paid on February 9, 2021, and CNY 25.5 million was paid on December 30, 2021, and CNY 25.5 million was paid on March 11, 2022, and CNY 20 million was paid on June 30, 2022, the remaining receivables are CNY 6,100 thousand. 2)Due to the repeated occurrence of the Covid-19 in China, this force majeure factor has seriously affected the society, various industries and Damahua operations. Damahua needs to retain some working capital, therefore,Damahua proposed to the Company a plan for deferring the repayment of the receivables. 3)The Audit Committee and the Board of Directors of the Company discussed Damahua deferment plan today,principle through installment plan.According to the payment of RMB 20 million on June 30, 2022, the payment of RMB 16 million on December 31, 2022, the payment of RMB 16 million on March 31, 2023, the payment of RMB 29 million on June 30, 2023 will be recovered in installments .And RMB 20 million has been recovered on June 30,2022.The Audit Committee and the Board of Directors also decided that the company should negotiate with Damahua as soon as possible that the company's debt preservation procedures should be added to the contract and submit the latest land value assessment report. 4)After adding the company's debt protection procedures to the contract and submitting the latest land value assessment report, the company will submit it to the audit committee and the board of directors. 5)According to Article 14-4 of the Securities and Exchange Act and Article 218, Paragraph 1 and Article 224 of the Company Act,independent directors must supervise and remind the management when they discover that the company is in danger of major damage.The independent directors have indeed supervised the progress of the collection of the receivables that have not yet been collected by Damahua,and reminded the management of subsequent measures. 7.Any other matters that need to be specified: None