ST Long Yuan announced on the evening of August 13 that it had received a notice from the Ningbo Intermediate People's Court in Zhejiang Province. Creditor Shanghai Zhenkun Building Materials Trading Co., Ltd. applied to the court for restructuring and pre-restructuring of the company, citing that the company is unable to repay due debts and clearly lacks solvency but still has restructuring value. The basis for Zhenkun Building Materials' application is that ST Long Yuan failed to pay 1.5 million yuan for goods on time. As of the disclosure date of the announcement, the court has only filed the case for review and has not yet ruled to accept the restructuring application or decided on pre-restructuring. There is significant uncertainty as to whether the company will subsequently enter relevant procedures. If the restructuring fails, the company's shares will face the risk of being delisted. In the first quarter of this year, ST Long Yuan's unaudited total assets were 48.295 billion yuan, total equity attributable to owners of the parent company was 6.949 billion yuan, revenue was 1.261 billion yuan, and net profit attributable to the parent company was a loss of 129 million yuan.
Long Yuan Construction Group Co LtdCreditor applies for restructuring due to unpaid debts, risking delisting if restructuring fails.
