--- title: "The bankruptcy liquidation issue is not over yet, and now there is a forced execution of 26 million. MQR's debt troubles are truly \"unbreakable and tangled.\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/279710795.md" description: "MQR is facing a forced execution of 26.06 million, and its debt issues continue to escalate. Although the company claims it will not affect normal operations, its financial situation has been fully exposed. Two months ago, it applied for bankruptcy liquidation due to a debt of less than 6 million yuan, and now it has been ordered to pay 26.2656 million yuan due to a dispute over project payments with China Railway Construction, for which MQR must bear joint liability. This case has entered the forced execution stage, indicating that MQR's debt crisis is becoming increasingly severe" datetime: "2026-03-19T02:37:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279710795.md) - [en](https://longbridge.com/en/news/279710795.md) - [zh-HK](https://longbridge.com/zh-HK/news/279710795.md) --- # The bankruptcy liquidation issue is not over yet, and now there is a forced execution of 26 million. MQR's debt troubles are truly "unbreakable and tangled." Faced with the continuous "palace coup" from creditors, MQR has vigorously defended itself in announcements, claiming that it will not affect the normal operation of the company, but its severely damaged financial situation has been thoroughly exposed to the public eye. Facing "palace coup" again Two months ago, MQR was applied for bankruptcy liquidation by creditors due to a debt of less than 6 million yuan. Now, before this crisis is completely resolved, it is facing new debt troubles. On March 18, MQR issued a major litigation announcement, disclosing that its wholly-owned subsidiary Xinjiang Western Ecological Animal Husbandry Co., Ltd. (hereinafter referred to as "Western Ecology") is in a dispute with China Railway Construction Group Co., Ltd. (hereinafter referred to as "China Railway Construction") over the payment of project funds. The case has been ruled by the court in the first instance, ordering Western Ecology to pay approximately 26.2656 million yuan to China Railway Construction, and MQR bears joint and several liability for this debt. In January of this year, China Railway Construction applied for compulsory enforcement, with an enforcement amount of approximately 26.4418 million yuan, which includes the judgment amount for the project, application fees, and the case acceptance fee for the first instance. MQR bears joint and several liability for this debt, which means that China Railway Construction can directly demand payment from MQR without waiting for the subsidiary's bankruptcy liquidation. According to the information disclosed in the announcement, this dispute originated from the general contracting agreement signed between Western Ecology and China Railway Construction for the dairy farm breeding base in June 2019. The point of contention is that China Railway Construction believes the project was completed in December 2021. As of the time of the lawsuit, Western Ecology had paid a total of 69.7341 million yuan for the project but still owed 26.2656 million yuan, thus filing a lawsuit in court to demand payment of the overdue project funds and interest totaling 27.5572 million yuan. Western Ecology, on the other hand, filed a counterclaim on the grounds of quality defects in the project, seeking 300,000 yuan for repair costs. On March 12, 2025, the Changji City People's Court accepted the case and made a first-instance judgment on September 4 of the same year, ruling that Western Ecology lost the case and was ordered to pay 26.2656 million yuan to China Railway Construction, with MQR Group bearing joint and several liability for this debt. Subsequently, neither party appealed, and the first-instance judgment became effective and has entered the compulsory enforcement stage. Although MQR stated in the announcement that this lawsuit would not affect the company's current or future profits, it is clear to observers that this only indicates that the company may have accounted for this liability in past financial reports and will not incur an additional loss on the income statement. However, this does not mean that the money does not need to be repaid, nor does it mean that there is no impact on the company's cash flow. More concerning is that MQR also mentioned in the announcement that, in addition to this major lawsuit of 26.44 million yuan, the company and its holding subsidiaries also have litigation and arbitration matters that do not meet the disclosure standards for major lawsuits, with a cumulative total of 43.89 million yuan To put it simply, the company still has a bunch of scattered lawsuits on hand. Although each individual case is not large, the total amount adds up to a significant figure. These temporarily hidden debts are also potential cash outflows for the company. At the end of the announcement, MQR stated that it would "actively take relevant measures to protect the interests of the company and shareholders." However, for a company that has suffered losses for four consecutive years, has a debt ratio of 83%, has all shares of the major shareholder frozen, and is burdened with 43.89 million undisclosed lawsuits, how many "active measures" can be taken? Deep in a financial black hole In fact, two months ago, MQR's financial crisis was exposed to the public due to a debt of less than 6 million yuan. On January 27, 2026, MQR disclosed that creditor Guangzhou Minghui Machinery Co., Ltd. applied to the court for bankruptcy liquidation of MQR on the grounds of the company's overdue equipment payment of 5.9549 million yuan. 5.95 million yuan is not a large sum for a listed company, but it was like knocking down the first domino, revealing MQR's severely damaged financial "fundamentals." First of all, regarding debt pressure and the resulting judicial risks, Qichacha shows that as of now, MQR faces 131 judicial risks, including 70 judicial lawsuits and 49 operational risks. Among them, there are a total of 33 high-risk information items, including bankruptcy reorganization. As a result, the company has been repeatedly listed as a dishonest executor, and the legal person has been restricted from high consumption multiple times. One point worth noting is that among the 70 judicial lawsuits, there are 17 final cases, totaling approximately 180 million yuan. The so-called final cases are a statutory procedure in court enforcement, meaning the termination of the current enforcement procedure. Reaching this procedure indicates that the court has exhausted all property investigation means and found no executable property of the executor, nor any other execution conditions, temporarily halting the current enforcement. In MQR's case, this means that although the court has ruled on this 180 million yuan debt and the company has acknowledged it, there is indeed no money to repay. In addition to the litigation risks arising from debts, another manifestation of MQR's financial crisis is the high proportion of shares pledged by the controlling shareholder "Xinjiang MQR Group." Business registration information shows that as of now, MQR Group only holds 9.86% of MQR's shares, a significant decrease from the peak of 41.45% in early 2020 and 34% at the beginning of 2023. It is worth mentioning that MQR Group has numerous industries under its umbrella and has commonly used share pledging to leverage during its previous growth process. The risk of this operation lies in the fact that once the capital chain breaks and debts cannot be repaid or stock prices decline, it will trigger pledge risks After the outbreak of the "propylene glycol incident" in 2022, MQR Group triggered defaults due to frequent equity pledge financing and ultimately failing to repay the money, leading to its shares in MQR being either forcibly sold in the secondary market or judicially auctioned, resulting in a continuous dilution and freezing of its shareholding ratio. More seriously, the remaining 9.86% shares of MQR Group are all under judicial freezing and pledge status. This means that the major shareholder has no liquid assets to maneuver, almost completely losing the ability to refinance through equity. On the other hand, the company's self-sustaining ability is also concerning. Since the crisis of the "propylene glycol incident" in 2022, the collapsed brand has not been rebuilt, and the dairy business has continued to shrink, leading to four consecutive years of losses, with cumulative losses exceeding 750 million yuan. A recently disclosed performance forecast indicates that the company expects to lose between 66 million yuan and 79 million yuan in 2025. Although this represents a significant reduction in losses, the operational fundamentals have not fundamentally reversed. As of the end of the third quarter of 2025, the company's debt-to-asset ratio remains as high as 83%, far exceeding many peers. With continuous losses, compounded by the risks of the major shareholder's pledges and ongoing debt default issues from subsidiary companies, when will MQR be able to escape this "sandwich" predicament? ### Related Stocks - [002719.CN](https://longbridge.com/en/quote/002719.CN.md) ## Related News & Research - [Soccer-Sweden boss Potter calls up Elanga as Japan make three changes](https://longbridge.com/en/news/290884214.md) - [Brimstone director associates buy shares worth ZAR 9.02 million](https://longbridge.com/en/news/290839868.md) - [Absa Bank lists ZAR 40 million ASC382 credit-linked note on JSE](https://longbridge.com/en/news/290826224.md) - [Datatec DBW plan buys shares worth ZAR 25.52 million](https://longbridge.com/en/news/290711733.md) - [Electro Aço Altona cancels 136,506 share issue leftovers after rights offering closes](https://longbridge.com/en/news/290874260.md)