KELONG FINE CHEMICAL's subsidiary Sichuan Hengze is undergoing debt restructuring for part of its receivables

KELONG FINE CHEMICAL's wholly-owned subsidiary Sichuan Hengze has reached a debt restructuring plan with Beijing Jindun and Zhonghuan Rongteng. Sichuan Hengze's receivables from Beijing Jindun amount to 24.7978 million yuan, and receivables from Zhonghuan Rongteng amount to 2.8939 million yuan, totaling 27.6917 million yuan. Due to the impact of the market environment, Beijing Jindun and Zhonghuan Rongteng are experiencing financial difficulties. Sichuan Hengze has fully provided for bad debts on its receivables and has filed a lawsuit. Ultimately, Beijing Jindun will pay 6.2591 million yuan in installments, and Sichuan Hengze will waive 21.4326 million yuan of the debt