Zhitong Financial APP, Huifeng (002496.SZ) issued an announcement that the 26th interim meeting of the eighth board of directors of the company examined and passed the "proposal to apply for bankruptcy liquidation of Jiangsu Jialong Chemical Co., Ltd., a holding subsidiary", because the subsidiary Jiangsu Jialong Chemical Co., Ltd. (hereinafter referred to as "Jialong Chemical") has signed a storage agreement with the management committee of Jiangsu Lianyungang Chemical Industrial Park. In order to better dispose of Jialong Chemical's creditor's rights and debts and safeguard the company's legitimate rights and interests, it is proposed to apply for bankruptcy liquidation of Jialong Chemical as a creditor.
The company said that the bankruptcy liquidation of Jialong Chemical has yet to be accepted by the court, it is difficult to predict the outcome of the disposal of bankrupt assets, and it is not possible to accurately predict the recoverable amount of claims of the company and its subsidiaries. The company's long-term equity investment in Jialong Chemical and the claims of the company and its subsidiaries on Jialong Chemical are not expected to be fully recovered, and the company will carry out corresponding accounting treatment according to the final liquidation results and in accordance with the provisions of accounting standards. The bankruptcy liquidation of Jialong Chemical will help to reduce the operating burden of the company and will not have a significant impact on the normal development of the company's existing main business.