Hong Kong Exchanges and Clearing Limited and the Stock Exchange of Hong Kong Limited take
no responsibility for the contents of this announcement, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in
reliance upon the whole or any part of the contents of this announcement.
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 0042)
On 24 February 2009, China Great Wall Asset Management Corp. Shenyang Office (“Great Wall”) brought
a lawsuit to Liaoning Higher People’s Court (“Liaoning Higher Court”) against Shenyang High-voltage
Switchgear Limited ("Shenyang High-voltage") for the overdue liabilities of Great Wall with a total of
RMB 351,750,000. The Company received from Liaoning Higher Court an indictment and additional
defendant application of Great Wall on 11 August 2009. According to the indictment and additional
defendant application, Great Wall indicted the Company as an additional defendant, and claimed it to bear
the joint liability. Now, the Company makes a disclosure in relation to the litigation in accordance with the
provision of Article 13.09 in the Listing Rule.
The Outline of the Litigation
On 24 February 2009, Great Wall brought a lawsuit to Liaoning Higher Court against Shenyang High-
Voltage for the overdue liabilities of Great Wall, requesting the court to Liaoning Higher Court against
Shenyang High-voltage for the overdue liabilities of Great Wall, requesting the court to order Shenyang
High-voltage to repay the liabilities including the principal of RMB 351,750,000 and its interest. On 11
August 2009, the Company received from Liaoning Higher Court an indictment and additional defendant
application. According to the indictment and additional defendant application, on 18 May 2009, Great
Wall brought an additional lawsuit to Liaoning Higher Court against the Company, claiming the Company
to bear the joint liability.
The General Information of the Litigation
(I) The Parties of the Litigation
Plaintiff: China Great Wall Asset Management Corp. Shenyang Office
Defendant: Shenyang High-voltage Switchgear Limited
In addition, additional defendants of the following respondents:
The 2nd defendant: New Northeast Electric (Shenyang) High-voltage Switchgear Co., Ltd
The 3rd defendant: New Northeast Electric (Shenyang) High-voltage Isolator Switchgear Co.,
The 4th defendant: Shenyang Beifu Machinery Manufacturing Co., Ltd
The 5th defendant: Shenyang Suntime Storage and Logistics Company Limited
The 6th defendant: Northeast Electric Development Co., Ltd
The 7th defendant: Xinfeng Power Investment Co., Ltd
The 8th defendant: Shenyang Wanli Motor Vehicle Leasing Co., Ltd
The 9th defendant: Shenyang Chengan Electric Equipment Group Co., Ltd
The 10th defendant: Shenyang Xinwei Logistics Co., Ltd
The 11th defendant: New Northeast Electric Group Co., Ltd
The 12th defendant: New Northeast Electric Investment Co., Ltd
The 13th defendant: Shenyang Dejia Trading Co., Ltd
(Note: Among the above defendants, New Northeast Electric Investment is a controlling
shareholder of the Company, and other companies are third parties independent of and not
connected with the Company and its Connected Persons.)
(II) The Cause of the Dispute
Great Wall brought a lawsuit against Shenyang High-voltage for the fact that Shenyang High-
voltage entered into a loan contract with a subordinate financial institution of the Industrial
and Commercial Bank of China Liaoning Branch (the Bank) during the period between 1986
and 2003, and so far it has not paid the due loan principal of RMB 351,750,000 because of its
inability to pay it. On 15 July 2005, the Bank entered into a Debt Assignment Agreement with
Great Wall, under which all of the debt assets were assigned to the plaintiff who was entitled to
claim the debt.
In the indictment and additional defendant application, Great Wall claimed the Company to
be an additional defendant and to bear the joint liabilities with other defendants because the
Company carried out a share transfer transaction with Shenyang High-voltage at an unreasonable
consideration in 2004, causing the flight of assets and the serious violation of interests of
(III) The Claim related to the Company
1. Claim the above respondents to be the additional defendants of the litigation according to law;
2. Claim the above respondents to bear the joint liabilities for the principal and interest of Great
Wall due from the defendant Shenyang High-voltage Switchgear Limited;
3. Claim the above respondents to jointly bear all costs of the litigation.
Impact of the Litigation on the Company’s Current Profits
Since 15 March 2004, the Company has not held any share of Shenyang High-voltage, a former wholly-
owned subsidiary of the Company. (Please refer to the temporary announcement dated 13 June 2003, the
2003 Annual Report dated 8 April 2004, and the 2004 Interim Report for details. )
Among the above defendants, New Northeast Electric Investment Co., Ltd is a controlling shareholder of
the Company, and other companies are third parties independent of and not connected with the Company
and its Connected Persons.
According to the legal advice of Liaoning Wang, Wu, Yang and Ma Law Office, Chinese legal adviser of
the Company, Great Wall's claim against the Company to bear joint liability has no facts and legal basis.
The Company’s judgment of the case: on the basis of the economic ties between the Company and
Shenyang High-voltage as well as the legal advice of the lawyer, the Company shall not become a
defendant of the Shenyang High-voltage litigation, and shall not be liable for the compensation , and the
litigation will not have an impact on the Company’s financial situation and its current profits..
The Company has employed the lawyer to respond to the lawsuit actively and propose to make a further
clarification announcement upon the court’s correct judgment of the case facts. The Company reserves the
right to sue the plaintiff for its adverse effect on the Company’s market reputation.
If there is any new progress about the case, the Company will timely perform its announcement
The Company has not had any other undisclosed litigations or arbitrations .
Documents for Reference
1. Civil written order of China Great Wall Asset Management Corp. Shenyang Office
2. Application for adding a defendant and changing the claim
Shareholders of the Company and public investors are advised to exercise extreme caution when
dealing in the shares of the Company.
By order of the Board
Shenyang, the People’s Republic of China
12 August, 2009
As at the date of the Statement, the Board of Directors comprises of five executive directors, namely Mr. Su
Weiguo, Mr. Wang Shouguan, Mr. Bi Jianzhong, Mr. Liu Qingmin, and Mr. Du Kai; and five independent non-
executive directors, namely Mr. Wu Qicheng, Mr. Lin Wenbin, Mr. Xiang Yongchun, Ms. Liang Jie and Mr.