Xinming China (02699): Chongqing Xinming filed a bankruptcy liquidation petition

Xinming China (02699) announced that on January 7, 2022, the Company received a judgment dated December 27, 2021 from the Fifth Intermediate People's Court of Chongqing Municipality, which was based on the bankruptcy liquidation petition filed by Chongqing Chunjiang Coated Glass Co., Ltd. (the applicant) against Chongqing Xinming Real Estate Co., Ltd., an indirect non-wholly-owned subsidiary of the Company, dated October 20, 2021.

Shanghai Zhonglian (Chongqing) Law Firm has been appointed by the People's Court as the administrator of Chongqing Xinming. According to the announcement issued by the People's Court, the first creditors' meeting will be held on February 24, 2022.

The reason for filing the petition for liquidation was that Chongqing Xinming could not settle the debts maturing in total of about RMB810,000 based on the judgment rendered by the Hechuan District People's Court of Chongqing Municipality. As at the date of this announcement, Chongqing Xinming has not yet paid off the debts due to the applicant.

According to the announcement, the Company's management expects the claims of third-party creditors and net amounts payable to other subsidiaries within the Group to be approximately RMB450 million and RMB600 million respectively. After considering the asset status of Chongqing Xinming, the prospects of the industry and the reasons for the temporary difficulty in repaying the debt, the management intends to apply to the people's court for liquidation and restructuring plan within the prescribed time limit. In addition, the management will actively communicate and negotiate with the manager during the liquidation and restructuring period and strive to introduce strategic investors or property development enterprises to cooperate in the development of the remaining land in Chongqing Xinming.