Securities code: 000525 securities abbreviation: St red sun Announcement No.: 2022-024 Nanjing Red Sun Co.Ltd(000525)
Suggestive announcement on the application for reorganization of a wholly-owned subsidiary by creditors
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
Recently, Nanjing Red Sun Co.Ltd(000525) (hereinafter referred to as “the company”) learned from Anhui Guoxing biochemistry Co., Ltd. (hereinafter referred to as “Anhui Guoxing”), a wholly-owned subsidiary, that Anhui MAANSHAN Rural Commercial Bank Co., Ltd. (hereinafter referred to as “MAANSHAN rural commercial bank”) could not pay off its due debts and obviously lost its solvency, Apply to Dangtu court for reorganization of Anhui Guoxing. Anhui Guoxing raised an objection to Dangtu Court on the application and held a hearing. There are major uncertainties about whether Dangtu court will accept the application and whether Anhui Guoxing can enter the reorganization procedure. The company will exercise the rights of shareholders according to law, coordinate and guide Anhui Guoxing to actively do a good job in daily production, operation and management on the existing basis.
1、 Anhui Guoxing’s application for reorganization by creditors
(I) Applicant
Applicant: Anhui MAANSHAN Rural Commercial Bank Co., Ltd
Legal representative: Jinhui
Address: No. 1659, Hongqi South Road, Yushan District, Ma’anshan City, Anhui Province
(II) application facts and reasons
Anhui Guoxing owes the loan principal of Ma’anshan agricultural Commercial Bank of 118597026.10 yuan and the interest (including penalty interest and compound interest) of 1130684.70 yuan. Ma’anshan rural commercial bank believes that Anhui Guoxing cannot pay off its due debts and has the possibility of obvious loss of solvency. At the same time, Anhui Guoxing has the value and necessity of reorganization. In order to resolve the corporate governance and liquidity risks of Anhui Guoxing and get rid of its debt dilemma, it applies for the reorganization of Anhui Guoxing.
2、 Opinions of the board of directors on Anhui Guoxing’s application for reorganization
According to the relevant provisions of the enterprise bankruptcy law of the people’s Republic of China, when the debtor cannot pay off the due debts and obviously lacks the solvency, the creditor has the right to apply to the court for bankruptcy reorganization of the debtor according to law. Bankruptcy reorganization is different from bankruptcy liquidation. It is a judicial procedure aimed at saving the debtor’s enterprise and restoring the sustainable profitability of the debtor’s enterprise. Anhui Guoxing is a wholly-owned subsidiary of the company. If Dangtu court accepts the reorganization application submitted by Ma’anshan rural commercial bank, if the reorganization fails, Anhui Guoxing will have the risk of bankruptcy liquidation; If the reorganization is successfully implemented, it will help to improve the asset liability structure of Anhui Guoxing and further improve the profitability and high-quality development ability of Anhui Guoxing.
No matter whether it enters the reorganization procedure or not, the company will exercise the rights of shareholders according to law, coordinate and guide Anhui Guoxing to actively do a good job in daily production, operation and management on the existing basis, avoid the significant impact of the reorganization application on it, and jointly negotiate with all parties on the solution to the debt problem of Anhui Guoxing, and strive to reach a settlement. The company will also continue to pay attention to the progress of the above matters and fulfill the obligation of information disclosure in time according to relevant regulations.
3、 Risk tips
As of the date of this announcement, Dangtu court has ruled whether to accept the reorganization application of Ma’anshan rural commercial bank for Anhui Guoxing and whether Anhui Guoxing can enter the reorganization procedure. If Dangtu court decides to accept the reorganization application, Anhui Guoxing will enter the reorganization procedure and have the possibility of affecting the company’s long-term equity investment.
The information disclosure media designated by the company are China Securities Journal, securities times and cninfo（ http://www.cn.info.com.cn. ）, all information of the company shall be subject to the information disclosed in the above media. Please pay attention to the announcement information, make prudent decisions and pay attention to investment risks.
It is hereby announced.
Nanjing Red Sun Co.Ltd(000525) board of directors
February 17, 2022
