SZREPG subsidiary enters bankruptcy, parent company loses control

Shenzhen Special Economic Zone Real Estate & Properties Group (SZREPG) announced that its controlled subsidiary, Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd. (Jianbang Company), has entered bankruptcy liquidation. The Huizhou Intermediate People's Court accepted a petition due to Jianbang Company's inability to repay debts, including a judgment of yuan 474,824 plus interest. The court has appointed a liquidation group as the administrator for Jianbang Company.

As a result of these proceedings, SZREPG will lose control over Jianbang Company, which will no longer be included in the parent company's consolidated financial statements. This follows the 2022 halt of Jianbang Company's Deepfound Linxinyuan project, rendering its overall operations stagnant.

SZREPG has cumulatively provided Jianbang Company with loans totaling yuan 75,597.82m. This includes principal, interest, and liquidated damages of yuan 72,452.62m, for which SZREPG has secured favorable judgments and initiated enforcement. An additional yuan 3,145.20m in operational loans remains unrecovered. SZREPG intends to file its claims to protect its legal rights.