Xinjiang Sayram subsidiary declared bankrupt by court

Xinjiang Xinsai Trading Co., Ltd., a wholly-owned subsidiary of Xinjiang Sayram Modern Agriculture, has been formally declared bankrupt by the Urumqi Tuntunhe District People's Court. The court's decision concludes that Xinjiang Xinsai Trading's assets are insufficient to cover its due debts, meeting the legal conditions for bankruptcy.

The bankruptcy liquidation process for Xinjiang Xinsai Trading began in 2022 due to persistent losses and insufficient assets to cover debts. The Urumqi Tuntunhe District People's Court accepted the bankruptcy application on September 7, 2023, and subsequently appointed Guo Hao Law Firm (Urumqi) as the bankruptcy administrator on May 28, 2025. Following this, Xinjiang Xinsai Trading will no longer be included in Xinjiang Sayram's consolidated financial statements.

Xinjiang Sayram Modern Agriculture clarified that the bankruptcy liquidation of Xinjiang Xinsai Trading will not impact the company's existing business operations. The ultimate effect on current or future profits will be determined by the final results of the bankruptcy liquidation and audited financial statements.