Shunfeng International updates on debt restructuring, asset disposals, and winding-up petition

Shunfeng International Clean Energy Limited (SFCE) has issued a quarterly update on its action plans to address the auditor's disclaimer of opinion. Key developments include ongoing negotiations for a debt restructuring plan, with two potential investors proposing concrete terms and completing due diligence. They are expected to submit detailed term sheets by mid-November 2025, with the company aiming to finalize a restructuring agreement by the end of December 2025. Creditors have expressed support for the plan and opposed an immediate winding-up order.

The company also provided updates on the collection of remaining proceeds from various disposals. It anticipates receiving RMB13.7 million from 2019 disposals, RMB0.5 million from 2020 disposals, RMB23.2 million from 2021 first disposals, and RMB2 million from 2021 third disposals, all expected by June 2026. Additionally, RMB35 million is expected from the forced sale between November and December 2025, and RMB1.2 million from 2021 second disposals by June 2026. These collections are contingent on factors such as compliance list inclusion, settlement of commercial bills, resolution of disputes, and completion of land certificate applications.

Discussions regarding further solar power plant disposals have been delayed due to the pending release of the national subsidy review's compliance list directory. The company continues to communicate with relevant government offices concerning this matter. A winding-up petition hearing against the company has been further adjourned to November 19, 2025.