On October 5, 1992, Jinbei Automobile Co., Ltd. (hereinafter referred to as Jinbei Shares) borrowed 100 million yuan from the Shenyang Financial Market opened by the People’s Bank of Shenyang. After the loan expired, Jinbei Shares failed to fulfill its obligations. All repayment obligations. On May 27, 2005, the ICBC Business Department transferred the creditor's rights of 109.67 million yuan (principal and interest on account) to the Shenyang Office of China Huarong Asset Management Company (hereinafter referred to as Huarong Asset). Subsequently, Jinbei Shares still failed to fulfill its repayment obligations. On June 22, 2006, Huarong Assets issued a "Letter of Communication on Proper Handling of Bank's Non-performing Assets" to Jinbei Shares, requiring a formal repayment or repurchase plan to be submitted in writing before June 30, 2006. On June 30, 2006, Jinbei Shares issued "Opinions on the Repurchase of Non-Performing Loans" to Huarong Asset Management, and the company proposed to repurchase the above-mentioned non-performing assets at a ratio of 5-8. Huarong Assets did not respond to Jinbei Shares’ repurchase opinion. On August 3, 2006, Huarong Asset released the "China Huarong Asset Management Company Asset Disposal Announcement" in the Economic Daily, stating that it had policy divestiture assets, loss assets and debt-repaying physical assets in 11 regions including Shenyang. *** Involving 3304 enterprises, the total amount is 11,321,201,924.71 yuan. It is planned to package and dispose of the above assets as a whole. It is specially announced. For more information about the asset package, please log on to the Huarong Assets website. On August 26, 2006, China Huarong Asset Management Company approved the overall package disposal project of the Shenyang office. The Shenyang office was requested to formulate a formal disposal plan as soon as possible in accordance with the company's regulations and submit it to the company for approval. On November 7, 2006, Huarong Asset issued an asset promotion announcement in Liaoning Daily. The announcement did not list the specific name of the debtor and the amount of the debt. For more information about the asset package, please log on to the Huarong Asset website. On November 16, 2006, Huarong Assets issued a bidding announcement in the China Securities Journal, stating that it wanted to package 3,177 properties in six areas: Shenyang, Fushun, Benxi, Dandong, Liaoyang, and Tieling, with an asset amount of 1,095,501,340 yuan. bidding for non-performing assets. Bidders who apply to participate in the bidding must register by fax before November 18, 2006. The bidding date is initially scheduled for November 15, 2006, and the bid opening will take place within three working days. On December 7, 2006, the Liaoning Integrity Notary Office issued a notarial certificate for the Huarong Assets Disposal Non-performing Assets Bidding Activity on November 30, 2006, proving that the bidding activity was terminated due to failure to meet Huarong Asset Bidding Base Price requirements, but did not The specific bidding claims and specific participants of the bidding activity shall be notarized. On December 28, 2006, Huarong Assets signed an asset transfer agreement with Xiamen Hesheng Technology Co., Ltd. (hereinafter referred to as Xiamen Hesheng), stipulating that Huarong Assets would transfer the aforementioned assets in the amount of 1,095,501,340 yuan (including the claims in this case) All non-performing assets and related rights and interests of Xiamen Hesheng were transferred to Xiamen Hesheng for a transfer price of 108.8 million yuan, and the payment time was as of March 31, 2007. Xiamen Hesheng paid the entire price within the agreed time. In March 2007, after Huarong Asset transferred the creditor's rights in this case to Xiamen Hesheng, it filed a lawsuit in its own name with the Liaoning Provincial Higher People's Court, demanding that Jinbei Shares repay the arrears of principal and interest totaling 109.67 million yuan. Huarong Assets and Jinbei Shares reached a mediation agreement under the auspices of the Liaoning Provincial Higher People's Court on April 9, 2007. The content of the agreement was that Jinbei Shares would repay Huarong Assets 15 million yuan before September 30, 2007. On October 30, 2007, Recently, the two parties separately agreed to repay the remaining arrears of 94.67 million yuan through an asset restructuring plan. If the two parties fail to reach an asset restructuring agreement on the remaining arrears, Jinbei Shares will repay the remaining arrears of 94.67 million yuan to Huarong Assets. On April 10, 2007, Huarong Assets signed a specific creditor's rights transfer agreement with Xiamen Hesheng to confirm the creditor's rights in the aforementioned mediation agreement, and notified Jinbei Shares of the creditor's rights transfer on April 16, 2007. Jinbei Shares paid RMB 6,050,260 to Xiamen Hesheng on April 16, May 31, and July 3, 2007.

On December 6, 2007, Jinbei Shares issued an announcement on major events of Jinbei Shares in the China Securities Journal, which read: "Huarong Assets filed a lawsuit against the Senior People of Liaoning Province for Jinbei Shares' arrears of principal and interest totaling 109.67 million yuan. , the two parties reached a mediation agreement, which required Jinbei Shares to repay Huarong's assets of 15 million yuan before September 30, 2007. Before October 30, 2007, the two parties separately agreed to repay the remaining arrears of 94.67 million yuan through an asset restructuring plan to be performed by the company. During the mediation agreement, Huarong Asset packaged the company's above-mentioned debts and sold them to Xiamen Hesheng in April 2007. So far, the company has paid RMB 6,050,260 to Xiamen Hesheng." On December 19, 2007, Jinbei Shares filed a lawsuit with the court, requesting confirmation that the creditor's rights transfer agreement signed between Huarong Asset and Xiamen Hesheng was invalid.