Kinghand Industrial's reorganization faces uncertainty

Kinghand Industrial Investment Group (SZSE:000615) has issued an update on its pre-reorganization, cautioning investors about significant uncertainties. While the Xiangyang Intermediate People's Court has agreed to the pre-reorganization, there is no guarantee the court will formally accept the restructuring application. The company is also flagged with a potential delisting risk if the court accepts the application, with trading of the company's shares likely to be suspended. The company notes that its 2023 financial results, audited by ZhongShen ZhongHuan, included a qualified opinion expressing uncertainty about the company's ability to continue as a going concern. Further issues include potential risks from outstanding debt of subsidiaries and ongoing litigation, which could result in asset seizures and additional financial liabilities.