Zhengbang Technology subsidiary faces restructuring after court accepts reorganization bid

Chaoyang Zhengbang Ecological Agriculture Co. received a court ruling on September 4, 2025, to accept a reorganization application. The Chaoyang Intermediate People's Court also appointed Beijing Qinglv (Shanghai) Law Firm as the administrator. This follows a pre-reorganization application filed by a creditor, citing Chaoyang Zhengbang's inability to pay mature debts and lack of repayment capacity, but with significant reorganization value.

As of December 31, 2024, Chaoyang Zhengbang reported total assets of CNY 33,223.06m, total liabilities of CNY 45,977.24m, and negative net assets of CNY 12,754.18m. For 2024, the company generated operating revenue of CNY 19.79m and a net loss of CNY 5,093.88m. By June 30, 2025, unaudited figures showed negative net assets of CNY 15,079m, with a net loss of CNY 2,324.83m for the first half of 2025.

The successful implementation of the reorganization is expected to improve Chaoyang Zhengbang's asset-liability structure. However, there is uncertainty regarding the outcome, which could impact Zhengbang Technology's assets and future profits.