ST Jinhong: Unable to repay debts and interest on time, some assets of the subsidiary have been frozen

On the evening of July 22, ST Jinhong announced that the company recently received a notice of property preservation from the Beijing Second Intermediate People's Court, informing that some assets of its wholly-owned subsidiaries Hunan Shenzhou Jiepai Ceramics Co., Ltd., Hengyang Guoneng Real Estate Co., Ltd., and Zhongyou Jinhong East China Investment Management Co., Ltd. have been judicially frozen. The freezing of the aforementioned assets is mainly due to the company's tight liquidity, which has made it unable to repay the principal and interest of the "15 Jinhong Bond" and "16 Medium-Term Notes" creditors on time, leading creditors to take legal measures for property preservation. The frozen assets have not been restricted from normal use, and the company and its subsidiaries can still operate and carry out production activities normally. If the court takes further measures in this case, there may be risks of judicial disposal, which could have a certain impact on the production and operation of the company and its subsidiaries. The company will actively coordinate with all parties to resolve the issue of the frozen assets