HUAJIN INTL has announced that its mainland China management team, through cross-referencing information from two types of online channels, has identified a total of 52 judicial freezing records on shareholdings. Some shareholdings have been subject to multiple freezing rulings issued by different People's Courts.
The channels used for verification were official government and judicial authority disclosure platforms, including the National Enterprise Credit Information Publicity System and official online platforms operated by mainland judicial authorities, supplemented by commercial enterprise information integration platforms for cross-checking purposes. All identified freezes were initiated by external third-party creditors applying to the courts for property preservation, stemming from civil and commercial disputes related to overdue payments by certain mainland subsidiaries.
The court-issued freezing orders primarily restrict the registered shareholders from disposing of the judicially frozen equity, with such disposals including transfers, pledges, debt-for-equity swaps, and changes in equity registration. Furthermore, multiple creditors, due to overdue payment disputes involving the group's mainland subsidiaries, have obtained property preservation orders targeting physical operating assets and bank accounts.
Some of these preservation cases correspond to the equity freezing records detailed in Appendix I, while others restrict only assets without simultaneously freezing the equity of the relevant subsidiaries. The group has submitted equipment lists to the competent People's Courts and obtained confirmation documents bearing court seals, proving that the physical assets listed are subject to preservation.
Multiple creditors have successively registered sequential preservation orders over the same batch of factory premises, production machinery, and inventory. This situation makes it impossible for the group to match individual creditor claims precisely with corresponding assets, their book values, or asset proportions. A significant number of independent preservation applications exist in the market that freeze only physical assets or bank accounts without involving equity.
Given that operating assets are overlapped and covered by multiple sequential preservation measures, it is difficult for this announcement to list each independent preservation procedure individually. The information on asset preservation is sourced solely from public judicial online platforms. The courts do not provide asset lists or valuation documents broken down by individual cases, therefore the company is unable to disclose quantified asset details case-by-case within this announcement.
Online judicial publicity data may suffer from upload delays or incomplete registration, and offline court rulings may not be uploaded to public platforms. This cross-verification work is based solely on publicly available information accessible as of the date of this announcement. The group holds preservation documents issued and sealed by multiple People's Courts, with all preservation measures overlapping and applying to the same batch of operating assets.
The group cannot accurately match each preservation case and the relevant creditor with the restricted physical assets, nor can it ensure that the existing court documents cover all asset restrictions. Additional sequential preservation applications may be filed subsequently, and corresponding court rulings may experience service delays. Some related disputes have already entered the enforcement stage, where the concerned creditors have obtained effective judgments and submitted enforcement applications to the courts.
As of the date of this announcement, all enforcement procedures are only at the stage of verifying preserved assets. No compulsory auctions, compulsory disposals, or fund transfers have been initiated against any preserved assets or bank accounts. The group is actively negotiating debt restructuring and settlement plans with the relevant creditors while maintaining normal communication with its major lending banks. To date, it has not received any notices demanding early loan repayment or termination of credit facilities.
This voluntary announcement is issued following the company's first nationwide, comprehensive verification of preservation records for all its mainland subsidiaries. Previously, limited by the dispersion of judicial data across different provinces and the vast volume of records, the group only conducted sample checks on judicial publicity platforms without comprehensively screening all historical records. Multiple equity freezing records registered in previous years were only fully collated and identified during this special verification exercise.
Upon completing this comprehensive verification, the board of directors has established a monthly, full-scale screening routine procedure. This procedure will cover all national judicial publicity platforms to timely identify new and historical preservation records and assess related disclosure obligations. All freezing and preservation orders only restrict the right to dispose of assets and do not hinder the group's legal ownership or daily operational use of the relevant assets.
The affected subsidiaries maintain normal production, sales, and all routine business operations. As of the date of this announcement, no enforcement measures have been taken against any preserved assets. The board of directors acknowledges that the overlapping sequential preservation measures by multiple creditors, coupled with a large volume of independent preservation cases restricting only assets, make it difficult for the company to quantify and list all preserved assets on a case-by-case basis.
The group's daily production, sales, and collection operations remain fully normal, with no enforcement actions taken against the preserved assets. Should the group obtain independent itemized asset lists or valuation reports issued by the courts in the future, it will issue a supplementary announcement in due course. If required by the Listing Rules, the company will issue further announcements as appropriate.