Material Information

2020-07-07

On behalf of the YFY Firstpak (Yangzhou) Co., Ltd., YFY announces that the court has ruled to allow YFY Firstpak to declare bankruptcy

1.Date of the petition or receipt of the court notice document:2020/07/07
2.Name of the court:Yangzhou Economic and Technological Development Zone
People's Court in Jiangsu Province.
3.Issue date: 2020/06/30
4.Document number:(2019) Su 1091 Po No. 5
5.Company name:YFY Firstpak (Yangzhou) Co., Ltd.
6.Relationship with the Company (please enter: the company itself, parent
company, or subsidiary):subsidiary.
7.If a parent company or subsidiary company is entered, the mutual
shareholding percentages thereof:YFY held 70% shares indirectly of the company
8.Petitioner(s) or reorganizer(s):YFY (Shanghai) Financial Services Co., Ltd.
9.Content of the petition or notice:YFY Firstpak (Yangzhou) Co., Ltd. is
adjudicated by court to declare bankruptcy
10.Total amount of liabilities:
RMB33,998,955.07 ; Total amount of assets: RMB13,338,310 ; Total amount of
receivable: RMB9,226,903.34
11.Handling procedure:
The capital of YFY Firstpak was RMB 30 millions. There exist unresolvable
disputes between shareholders, thereby causing the YFY Firstpak unable to
continue to operate. After the court found that YFY Firstpak could not pay
off its due debts and the assets were not enough to pay off all the debts,
the court ruled to allow YFY Firstpak to declare bankruptcy.
12.Any other matters that need to be specified:
YFY previously announced that the court heard and accepted YFY Firstpak’s
bankruptcy case on 2019/08/13. The accumulated loss of YFY Firstpak was
duly recorded in the YFY's 2019 consolidated financial statements. The
declaration of bankruptcy by YFY Firstpak has no material impact on YFY's
financial and business operations.