Citic Guoan: Controlled subsidiary Guoan Guangshi declared bankrupt by Beijing court

Citic Guoan Information Industry Co., Ltd. announced the latest developments in the bankruptcy liquidation of its controlled subsidiary, Beijing Guoan Guangshi Network Co., Ltd. The Beijing No. 1 Intermediate People's Court has formally declared Guoan Guangshi bankrupt, effective immediately. The court cited insufficient assets to clear all debts and no prospect of restructuring or settlement, making its decision under the "Enterprise Bankruptcy Law of the People's Republic of China."

This declaration follows the company's disclosures regarding Guoan Guangshi's financial distress, with the first application for bankruptcy liquidation dating back to September 25, 2021. The court accepted the bankruptcy case on November 2, 2022, and the first creditors' meeting results were disclosed on February 16, 2023.

Since October 2022, when the administrator took over, Guoan Guangshi has no longer been included in the company's consolidated financial statements. All of the company's claims against Guoan Guangshi have been fully provided for as bad debt in prior years. As a result, the bankruptcy liquidation is not expected to negatively impact Citic Guoan's current operating performance or ongoing operations. The company will continue to monitor the liquidation process and communicate with the court and administrator to safeguard its interests and those of its shareholders.