Taiji Group subsidiary files for bankruptcy amid severe losses

Chongqing Taiji Industry Group announced that its wholly-owned subsidiary, Inner Mongolia Ar Khorchin Guotai Animal Husbandry Co., Ltd. (Guotai Animal Husbandry), has had its bankruptcy application accepted by the Ar Khorchin People's Court.

The decision to apply for bankruptcy liquidation, approved by the company's board of directors, aims to mitigate operational risks and losses stemming from Guotai Animal Husbandry's continuous decline in performance and inability to cover its liabilities. The court's acceptance of the bankruptcy application confirms that Guotai Animal Husbandry's assets are insufficient to repay all debts.

Upon the court appointing an administrator, Taiji Group will lose control over Guotai Animal Husbandry, and the subsidiary will no longer be included in the company's consolidated financial statements.

Taiji Group anticipates that the bankruptcy liquidation will not significantly impact its ongoing operations, as Guotai Animal Husbandry has already ceased business. The financial impact on the company's annual profit and loss will be finalized based on the audit results for the current year. Investors are advised to exercise caution.