According to the announcement from NEW CONCEPTS (02221), on December 26, 2022, the company's indirect wholly-owned subsidiary Yisheng (Tianjin) (as the lender) entered into a loan agreement with Shenzhen Dingxin (as the borrower). Under this agreement, Yisheng (Tianjin) agreed to grant a loan of RMB 19 million to the borrower, with a term of two years.

As of the date of the loan agreement, the borrower has paid the first interest of RMB 1.9 million according to the terms of the loan agreement. Subsequently, on December 1, 2023, Mr. Jiang Jinbo, representing the borrower, paid RMB 1.05 million as partial repayment of the loan principal and interest. On April 1, 2024, Yisheng (Tianjin) and the borrower entered into a debt offset agreement, under which both parties mutually agreed that the principal amount of RMB 1.43 million under the loan should be partially offset against the corresponding amount owed by Yisheng (Tianjin) to the borrower. However, Shenzhen Dingxin failed to repay the loan principal on the due date. As of the date of this announcement, the total outstanding principal amount under the loan is approximately RMB 16.8 million.

Since the loan was granted, the company has regularly monitored the status of the loan. To safeguard its assets, the company has continuously followed up on the loan recovery matters, including negotiating loan settlement with the borrower, and has taken collection actions against the borrower by sending demand letters in December 2024, March 2025, and June 2025. In light of the loan's status, the company has disclosed the full impairment of the loan in the annual report for the year ending March 31, 2025. However, the company will continue to make every effort to recover the loan. As of the date of this announcement, Yisheng (Tianjin) has engaged Chinese lawyers and is conducting public inquiries to ascertain any assets owned by Shenzhen Dingxin and its shareholders within China, in order to recover the Dingxin loan