*ST Xi sent an inquiry letter: whether the share freeze may lead to the loss of control of Lhasa Beer

Beijing News News On the evening of May 25, Tibet Development Co., Ltd. (hereinafter referred to as "*ST Xifa"), the parent company of Lhasa Beer, received an inquiry letter from the Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock Exchange") on the 2020 annual report, requesting it to explain the specific circumstances of the "major litigation and arbitration matters" mentioned in the annual report, and at the same time detailing the reasons why the capital occupation has not been paid off.

At the same time, the Shenzhen Stock Exchange also raised many questions about the control of Tibet Lhasa Beer Co., Ltd. (hereinafter referred to as "Lhasa Beer") in the inquiry letter.

According to the annual report, *ST Xifa's main business is beer production and sales, and the beer business is concentrated in its subsidiary Lhasa Beer. In 2020, the net profit achieved by Lhasa Beer was 61.7904 million yuan, which is the main source of profit for *ST Xifa. *ST Xifa and Carlsberg International Co., Ltd. each hold 50% of the equity of Lhasa Beer, and the board of directors of Lhasa Beer is composed of 5 directors, of which *ST Xifa appoints 3, and the chairman is appointed by *ST Xifa, *ST Xifa has control over Lhasa Beer and includes it in the scope of consolidated financial statements.

The 2020 audit report shows that there are significant uncertainties in *ST Xifa's ability to continue to operate, *ST Xifa bank account (the above-mentioned frozen account is the parent company account, *ST Xifa said that the company is a holding company, the freezing of the account involved has not affected the normal production and operation of the company's business, the above account is not the company's main bank account) and the relevant assets such as the equity of Lhasa Beer held by ST Xifa are still frozen.

As of December 31, 2020, *ST Xifa has estimated the principal and interest of the debt totaling $501 million based on the relevant litigation claims, judicial rulings and case progress or settlement agreements, and the above matters or circumstances indicate that there are significant uncertainties that may lead to significant doubts about *ST Xifa's ability to continue as a going concern.

The Shenzhen Stock Exchange requested *ST Xifa to explain whether the freezing of its shareholding in Lhasa Beer may result in *ST Xifa losing control of Lhasa Beer and whether it will have a material adverse impact on *ST Xifa's ability to continue as a going concern. Combined with the specific bank accounts and frozen amounts currently frozen by *ST Xifa, explain whether the reasons for determining that it has not affected the normal production and operation of the company's business and whether the reasons for non-company main bank accounts are sufficient, and explain the measures that the company has taken or intends to take in response to this matter.

*ST Xifa's first quarter report of 2021 shows that the operating income of the reporting period was 95.713 million yuan, an increase of 105.93% year-on-year, and the net profit loss attributable to the shareholders of the listed company was 6.2107 million yuan, an increase of 72.89% year-on-year.

Edited by Zheng Mingzhu Image Screenshot of Oriental Fortune App

Proofread by Li Xiangling