Jiu Rong Holdings Limited has released a supplemental announcement detailing progress on its litigation execution settlement with Zhejiang Westlake Electronics.

• Creditor’s-rights assignment: Under the Execution Settlement Agreement, RMB42.00 million of loan principal will be discharged through the assignment of creditor’s rights related to 11 new-energy public transportation charging stations.

• Residual collateral: Excluding the assigned assets, the court-controlled collateral comprises: – New-energy charging station assets and facilities valued at RMB40.22 million. – Accounts receivable from Zhejiang Songdu Supply Chain Management Co., Ltd. with a gross amount of RMB18.11 million, fully impaired to zero. – Accounts receivable from Banco Nacional de Cuba carrying a book value of RMB93.63 million (translated at EUR:RMB 8.4024:1). The combined carrying amount totals RMB133.85 million.

• Funding gap: After the RMB42.00 million settlement, the outstanding loan principal stands at approximately RMB188 million, exceeding the remaining collateral by RMB54.15 million. Negotiations with Westlake Electronics on how to address this shortfall are ongoing; no consensus has been reached.

• Financial impact: The board believes the partial settlement will help alleviate debt pressure and optimise the Group’s liability structure. Management does not expect any material adverse effect on the Group’s financial position or daily operations, which it states remain normal.

The company will continue to update the market in line with Hong Kong Listing Rules and advises shareholders and potential investors to exercise caution when dealing in its shares.