1.

Chinatex Australia received the judgment from the Supreme Court of New

South Wales on 30th November 2017, and made an appeal on 13th

December 2017. The hearing in appeal court will be on 9th May 2018. During

this period, Chinatex Australia always follow the legal procedure suggested

by the lawyers.

2.

The contract (SKA) signed by Chinatex Australia and Bindaree Beef is very

special. The negotiation in the beginning and details as well as the terms and

conditions of the contract is conducted between Bindaree Beef and a

company named UNIWELL. Bindaree Beef and UNIWELL determined how to

execute the contract, how to decide the categories and pricing. Chinatex

Australia was only involved by their invitation afterwards, and supplied with

fund and charged a little profit. Then UNIWELL informed Bindaree Beef that

they would not continue the contract, and Chinatex Australia’s opinion was

that Bindaree Beef and UNIWELL should work together to resolve this issue.

Bindaree did not continue the SKA as well. They did not follow the contract

to purchase the cattle, no processing was taken nor delivery of beef, and even

they never informed Chinatex Australia the delivery of goods. Bindaree Beef

pretended to say that they execute the contract, and sent invoices of

processing to Chinatex Australia. Bindaree Beef did not suffer from any actual
 loss in this business. Chinatex Australia hold that in this case the contract was

frustrated, and Bindaree Beef did not execute the contract, and the contract

has been terminated.

Moreover, based on the estimation by Bindaree Beef itself , even if Chinatex

Australia can execute the contract, their profit is at most 100 Australia dollar

per cattle, while the final result by the court made Bindaree Beef earn 250

Australia dollars per cattle, and Bindaree Beef can earn a super profit.

Based on the above reasons and other factors, we decided to make an appeal

to get a fair judgment.

3.

During the appeal, Bindaree Beef and Chinatex Australia had negotiations

about relevant issues, and during the process, Chinatex Australia hope to get

the result of the appeal and resolve the issue based on the Australian law.

While Bindaree Beef asked Chinatex Australia to go to Canberra to negotiate

the issue on 27/02/2018, and before the negotiation they arranged a meeting

with Senator John Williams (and they are from the same hometown) to give

political pressure to Chinatex Australia. The Senator made it clear that no

matter what happened Chinatex Australia must pay off the debt; if not, he

will make it a political event between China and Australia.

Chinatex Australia hold the position that the dispute of the contract is entirely

a business one and we should resolve it via law procedure but not politics.
 Bindaree Beef said that even if the law said that Chinatex Australia do not

need to make the full payment, they will also put political pressure to ask for

the payment. They also mentioned that the judge will also consider about the

political influence. Bindaree also said that they will put this to media to

decrease the reputation of Chinatex Australia and Chinese company and force

Chinatex Australia to make the payment.

4.

To clarify, the judgment by the NSW Supreme Court is based on the excessive

expected profit. Bindaree did not have any actual loss, they just signed a

contract, doing nothing and they want to get more that 30 Million dollars

even they will do nothing in the future. Thus, no matter whether they can get

the payment, their development and employees would not be influenced.

5.

Bindaree makes use of its domestic position and the relationship with the

Senator involved in the legal procedure to give pressure to a foreign company.

It is not only unfair to Chinatex Australia but also show no respect to the law

procedure. We never believe that this could happen in Australia.

6.

Chinatex Australia hold that the parties should resolve the problems via law

procedure since the case has already been in the court. We hope that

Bindaree could obey the law and do not use unfair means to give pressure to

foreign company to reach their purpose.