TEAMWAY INTL GP received a court order to auction and sell pledged properties for 8.5 million yuan

TEAMWAY INTL GP (01239.HK) announced that China Construction Bank Corporation Luojiang Branch has filed a lawsuit against its indirectly wholly-owned subsidiary and Heng Packaging. Heng Packaging has received a second enforcement order issued by the People's Court of Luojiang District, Deyang City, Sichuan Province, dated October 20 of this year, confirming that the land and real estate located in the western section of Xingfu Road, Jingshan Town Industrial Park, Luojiang District, Deyang City, Sichuan Province, have been auctioned off according to the court order at the highest bid price of RMB 8.5 million.

The bidder and buyer of the mortgaged property is Sichuan Guanxuan Packaging Products Co., Ltd. The proceeds from the auction of the mortgaged property will be used to repay the outstanding principal amount of the loan of RMB 5.9588 million and accumulated interest of RMB 19,055.02, while the remaining balance after deducting related costs and expenses will be used as the company's working capital.

The company believes that the current second enforcement order will not affect the normal business and operations of the group, as Heng Packaging can continue to produce and operate at its mortgaged property until the legal procedures for transferring ownership of the mortgaged property to the buyer are completed. Heng Packaging will negotiate leasing arrangements with the buyer at a fair and reasonable market price, with the expectation of continuing production and operations at the mortgaged property. If Heng Packaging fails to reach a leasing arrangement with the buyer, it is expected that there will be no significant difficulties in identifying other properties for continued production after considering suitable production facilities available for lease in the neighboring areas