CHINA METAL RESOURCES UTILIZATION LIMITED (Stock Code: 1636) issued an announcement indicating that its auditors expressed a disclaimer opinion on its financial statements for the year ended 31 December 2024, primarily concerning the company’s going-concern status.

According to the announcement, the progress of the company’s debt restructuring remains pivotal. The company has continued efforts to secure new capital ranging from RMB300 million to RMB500 million from multiple investors, including existing parties from Sichuan that have been conducting due diligence. Concurrently, the RMB400 million convertible bond investment by Kaiyue has been delayed due to liquidity constraints, though the company anticipates this will be completed once the liquidity matter is resolved.

The announcement also detailed ongoing communications and negotiations with various creditors, including banks and government tax authorities. The restructuring proposal for these debts is dependent on securing sufficient capital and boosting business operations to normal levels, along with obtaining formal agreements from major state-owned creditors to convert certain debts into the company’s equity.

Cost-control measures have continued during the period under review, but given the current level of operations and working capital, these actions do not substantially address the disclaimer opinion. The company’s main operating subsidiaries have had their bank accounts and operating assets unfrozen, and the management indicates that the operations are prepared to resume normal levels once the required investment capital is obtained.

These developments underscore the critical importance of securing fresh funding as the next step toward finalizing the debt restructuring, lifting the disclaimer opinion, and stabilizing the company’s financial position.