Gelonghui, December 26 | Global Strategy Group (08007.HK) announced that the company's board of directors learned that the Group holds a non-wholly-owned subsidiary and that the shares of Yichang Biaodian Natural Gas Utilization Co., Ltd. (“Yichang Standard”) are currently being frozen by the Supervisory Commission of Changzhi City of Shanxi Province (“Supervisory Committee”) (“Operation Freeze”). The total amount of frozen shares of Yichang Standard is RMB 14.7 million (hereinafter referred to as “frozen shares”). The Group has hired a Chinese legal adviser to provide the Group with relevant legal advice on the freezing action and frozen shares. The company decided to issue an announcement as soon as possible after verifying the freeze with the Chinese legal adviser.
According to a Chinese legal adviser, the daily business of Yichang Standard will not be restricted or adversely affected by the freeze. However, during the freeze operation, the group was unable to file any records relating to changes in ownership of the frozen shares, nor was it able to complete pledge registration procedures for the frozen shares. China's legal adviser informed the Group that Yichang Standard has not received any notice or other legal document that specifically freezes dividends, dividends and other proceeds, and the risk affecting the Group's right to enjoy Yichang Standard dividends is relatively low. The Board of Directors has directed the Chinese Legal Adviser to request further information and relevant documents, to inquire about the reasons behind the freeze and to provide advice on the potential legal consequences of the freeze on the Group.
With the exception of those described in the announcement, all other business operations of the Group are currently normal. After making all reasonable inquiries to the company regarding this situation, the board of directors confirmed that the Group's operations remained normal and believed that the freeze action would not have any significant adverse effect on the Group.