Vanward Electric: Kailong Real Estate declared bankrupt

Guangdong Vanward New Electric (SZSE:002543) announced that the Guangzhou Intermediate People's Court has declared Guangzhou Kailong Real Estate bankrupt, following Vanward's application for bankruptcy liquidation on August 5, 2024. The court had accepted the application on August 9, 2024 and appointed a liquidator. The court order was issued May 30, 2025. Vanward Electric had previously recognized the "other equity instrument investment" in Suzhou Industrial Park Ruican Investment Enterprise (Limited Partnership) at a book value of CNY0 as of December 31, 2021. The company also provided a guarantee for a litigation fee of CNY1,452,221.00 on September 16, 2021, and an impairment provision has been made. Vanward Electric states that the bankruptcy ruling will not affect the company's current profits. The impact of the bankruptcy on the future recoverability of investment payments is still uncertain.