Jiu Rong Holdings tackles disclaimer of opinion with strategic measures

Jiu Rong Holdings Limited has provided an update on its remedial actions following a disclaimer of opinion in its annual report for the eighteen months ended June 30, 2025. Key measures include progressing a very substantial disposal and joint operation for its charging station project, with a draft circular submitted to the Stock Exchange, and pursuing the potential disposal of equity interests or assets in Hangzhou Lu Yun Property Limited to enhance liquidity.

The Group has maintained communication with Banco Nacional de Cuba on long-outstanding receivables, securing partial repayments and escalating collection efforts with domestic customers. Legal proceedings continue for overdue receivables, with court judgments obtained and enforcement underway. Recovery efforts are also ongoing for an advance due from former executive director Siu Chi Ming, involving High Court actions and a Mareva injunction.

Additionally, Jiu Rong is negotiating with Xihu Electronics Group Co., Ltd. for extensions on two overdue borrowings and has secured payment term extensions from major suppliers to ease liquidity. The Group continues discussions with banks for financing, implements cost-optimisation initiatives, and is identifying an additional finance professional to bolster its management team.