YIWU CCC(SH:600415) 3 6 Ke·2024-03-29 10:30Core Viewpoint - Yiwu Purchase has filed a civil lawsuit against Zhao Wenge, the chairman of the Small Commodity City, for breaching his fiduciary duties and causing significant economic losses to the company, claiming over 5 million RMB in damages [1][2][5]. Group 1: Legal Proceedings - The lawsuit is set to be heard in Yiwu Court, with the case number (2024) Zhe 0782 Min Chu 5010 [1]. - Yiwu Purchase alleges that Zhao Wenge has violated his duties as a director by promoting the establishment of a competing platform, Chinagoods, which directly competes with Yiwu Purchase [2][5]. - The lawsuit seeks compensation for economic losses of 1 million RMB, all remuneration received by Zhao Wenge from the Small Commodity City from 2020 to 2023, and 300,000 shares of stock awarded to him in December 2020, totaling over 5 million RMB [2][5]. Group 2: Company Background - Yiwu Purchase was established in 2014 and is indirectly controlled by the Small Commodity City, which holds a 51% stake [1][4]. - The Chinagoods platform was launched in 2020 as a fully-owned subsidiary of the Small Commodity City, creating a competitive environment between the two platforms [1][4]. - Yiwu Purchase has faced multiple legal disputes with the Small Commodity City over the past four years, with no resolution achieved [1][2]. Group 3: Financial Performance - In 2022, Yiwu Purchase reported a net profit of 12.07 million RMB, while the data company associated with Chinagoods reported a net profit of 4.64 million RMB [7]. - As of the first half of 2023, Yiwu Purchase had total assets of 147 million RMB, net assets of 114 million RMB, revenue of 31.71 million RMB, and a net profit of 10.56 million RMB [7].