Huajin International Holdings Limited announced that 52 judicial preservation orders have been imposed on equity interests held in eight on-shore subsidiaries. The freezes have been initiated by multiple external creditors in connection with outstanding payment obligations of the relevant operating entities.
Key details
1. Scope of the freezes • A total of 52 equity preservation orders have been identified through the National Enterprise Credit Information Publicity System and other official judicial platforms. • The measures cover equity stakes in eight PRC subsidiaries, including Guangdong Huajin Industrial Company Limited (21 cases) and Jiangmen Huamu Metals Company Limited’s two recycling units (20 cases combined). • The largest single exposure involves Guangdong Huajin Industrial Company Limited, whose RMB 194.25 million registered capital is fully covered by repeated orders from several courts and creditors.
2. Impact on the Hong Kong-listed entity • The freezes apply only to the on-shore shareholdings of lower-tier PRC subsidiaries. No judicial restrictions have been recorded against Huajin International’s Hong Kong-listed shares. • According to the board, the preservation orders restrict transfers, pledges and other disposals of the frozen equity but do not impede daily production, sales or cash collection activities of the affected subsidiaries.
3. Creditor profile and legal status • Claimants include commercial banks, financial-leasing firms and industrial suppliers. Notable creditors are Bank of Guangzhou, CTBC Bank (Guangzhou Branch), Haier Financial Leasing and Dongguan Yiming Optoelectronic Technology. • All cases are currently at the asset-verification stage; no compulsory auction or fund seizure has commenced.
4. Mitigation and disclosure measures • Management has completed a group-wide review of judicial records for the first time and will implement monthly nationwide screenings to capture new preservation orders. • The group is negotiating debt-restructuring and settlement terms with creditors and has not received demands for early repayment from core lending banks. • The board considers the situation does not constitute inside information under Part XIVA of the Securities and Futures Ordinance at this stage but will issue further announcements should material developments arise.
Shareholders and potential investors are advised to exercise caution when dealing in the securities of Huajin International.