Zhongfu Straits subsidiary faces potential bankruptcy

Zhongfu Straits (Pingtan) Development Co., Ltd. (SZSE: 000592) has announced progress in its application for pre-reorganization through bankruptcy for its holding subsidiary, Fujian Zhongfu Straits Building Materials Co., Ltd. The initial proposal was approved in December 2023 and January 2024. Zhongfu Straits, acting as a creditor, filed the application with the court. As of the announcement, the application is under review, awaiting court acceptance. The company cautions that the pre-reorganization is not guaranteed and depends on the court's decision. Zhongfu Straits affirmed the matter will not lead to delisting. The company will continue to disclose updates and advises investors to be aware of potential risks.