Zhongfu Straits enforcement halted on subsidiary's debt

Zhongfu Straits Pingtan Development Co., Ltd. announced that the Pingtan County People's Court has terminated enforcement proceedings for a debt owed by its controlling subsidiary, Fujian Zhongfu Straits Building Materials City Co., Ltd. The court's decision indicates the subsidiary currently has no executable assets.

This follows a lawsuit initiated in November 2023 regarding overdue principal and interest on a loan of yuan 379,520,000. Despite a civil mediation agreement in February 2024 requiring the subsidiary to repay the principal and accrued interest, the obligations were not met. Zhongfu Straits then sought compulsory enforcement.

The company stated that the termination of enforcement means it can reapply if executable assets are discovered. While the current impact on the company's current or future period profits is uncertain, Zhongfu Straits will monitor the situation and perform accounting adjustments and disclosures as per regulations.