On November 11, Jiangsu Zhongli Group Co., Ltd. (Hereinafter referred to as "* ST Zhongli") issued a notice disclosing the suspension of the company due to the problem of capital occupation.
It is reported that up to now, * ST Zhongli has been accepted by the court for reorganization, and appointed the liquidation team of Jiangsu Zhongli Group Co., Ltd. as the administrator . According to the relevant provisions of the Enterprise Bankruptcy Law of the People's Republic of China, the Company still has the risk of being declared bankrupt by the court due to the failure of reorganisation. If the company is declared bankrupt, its shares will face the risk of being terminated.
Previously, Zhongli Group, its controlling shareholder Mr. Wang Baixing and Jiangsu Zhongli Holding Group Co., Ltd. received a decision on corrective measures issued by Jiangsu Regulatory Bureau of China Securities Regulatory Commission on May 10, 2024, requiring the collection of 1.805 billion yuan (including 112 million yuan of illegal guarantees) of occupied funds within six months. However, the rectification period expired on November 10, 2024, and the company failed to complete the collection of all funds occupied within the period.
Therefore, according to the relevant provisions of the Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2024), the shares of Zhongli Group have been suspended since the opening of the market on November 11, 2024, and the suspension period is not more than two months. During the suspension period, the company will continue to actively promote the work of reorganization, and intend to actively complete the rectification of capital occupation in the bankruptcy reorganization process.
The announcement shows that Zhongli Group has taken a number of measures to collect the occupied funds, including the pledge of the shares of its controlled subsidiaries to listed companies by controlling shareholders as a guarantee of repayment, the signing of agreements with relevant creditors to perform on behalf of them, and the issuance of letters of commitment by financial investors. At the same time, the creditors of the company have voted on the Bill on the Management and Disposal of Major Property, which clearly records the solution to the occupation of non-operating funds, and passed it in accordance with the law.
If the company completes the rectification and collects all the occupied funds within the suspension period, its shares will resume trading . However, if the rectification is not completed as scheduled, the company's shares will face the risk of delisting risk warning and termination of listing.
In addition, * ST Zhongli said that there is uncertainty about whether the company's restructuring plan can be successfully implemented by the end of 2024. If the reorganisation plan is not completed as scheduled or the implementation effect of the reorganisation is not up to expectations, the Company may touch the relevant provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange in relation to compulsory delisting of financial products after the disclosure of the 2024 annual report.
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