HUAZHANG TECH (01673) announced that on December 1, 2025, the seller, Yunnan Asset Management Co., Ltd., listed the creditor's rights for public bidding on the JD Asset Auction Platform (https://zcpm.jd.com). The group participated in the open bidding and emerged as the highest bidder. On December 17, 2025, the group entered into a debt transfer agreement with the seller for a consideration of RMB 20 million.

The acquired claims consist of two parts: 1. Unpaid principal of RMB 25.66 million and accrued interest/penalties from debtor Baoshan Xinshengtai Paper (engaged in paper manufacturing and recycled material recovery, currently undergoing bankruptcy restructuring). The collateral includes approximately 97,000 sqm of land and 21,000 sqm of factory buildings. 2. Unpaid principal of RMB 10 million and accrued interest/penalties from debtor Zhaotong Junchi Trading (engaged in building material sales), which is unsecured.

As of October 20, 2025, the total outstanding amount of the two claims was approximately RMB 74.7916 million.

The board considers this acquisition a strategic move, as the debtor companies are undergoing bankruptcy restructuring. By participating in the bidding, HUAZHANG TECH, as an investor in the restructuring, gains early control over collateralized assets (land and buildings) securing the debt. Additionally, the seller holds a key voting right (26.1% of secured claims, valued at RMB 38.32 million) in the creditors' meeting to approve the restructuring plan. Through this agreement, the group will acquire the seller’s creditor rights and voting power in the restructuring process.