According to Zhitong Finance App, Dream Oriental (00593) issued an announcement. On November 2, 2023, the company received Forever Union Holdings Limited (Forever Union or the “Petitioner”) to file a winding-up petition against the company with the Hong Kong High Court (High Court) under the Companies (Liquidation and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong) on November 1, 2023. According to the petition, the company was alleged to have owed Forever Union RMB 367.952 million, that is, the amount payable to Forever Union as evidenced by a confirmation letter issued by Forever Union dated June 30, 2023 and confirmed by the company. The petition is scheduled to be heard on January 10, 2024. On January 10, 2024, Forever Union submitted an amended petition alleging that the amount owed by the company was changed to HK$367.952 million instead of RMB 367.952 million, although the amount of arrears specified in the confirmation letter was RMB 367.952 million.

The company's directors immediately launched an internal investigation into the alleged debt owed to Forever Union. The board of directors has checked with all relevant personnel and noted that Forever Union has the same commercial registration address as the company and that the confirmation letter is stamped with the company's seal. This information raised serious doubts about the validity of the claim and possible fraud within the Group. The company has appointed legal advisers, and after further investigation of the evidence (including) confirmation letters and documents relating to the company's alleged liabilities, no board member was aware of the existence of the above letter, nor was any board member authorized to stamp the company's seal on the letter. The investigation further revealed that one of the directors of Forever Union was the daughter of former Chairman Zhou Zheng (who left the company on October 12, 2020 and declared bankruptcy in Hong Kong) and the niece of former Chairman Zhou Jin (who left the company on November 24, 2023). The other director is a former employee of the Group and a former company secretary of a Group subsidiary. He has free access to the Group headquarters, documents and company seals. The company believes that the petitioner, Forever Union, was an affiliate of the company at the time.

The board is still searching for evidence. According to the company's own records to date, there is no documentation to prove that the Group is responsible for repaying Forever Union any amount on the date claimed by the petitioner. The company still hasn't found the company seal on the confirmation letter. The former chairman was unable to be reached throughout the investigation, and they ignored all inquiries relating to such matters during the investigation. All investigations revealed that none of the company's directors (including former chairman Mr. Zhou Zheng and Ms. Zhou Jin) signed the confirmation letter or signed any documents approving and confirming the letter. After careful consideration of the above facts, authorization and validity of the amount claimed, the information in the petition is highly questionable and misleading. Therefore, the company has reported the case to the Hong Kong Police and will resolutely oppose the petition.

In accordance with the consent summons filed on November 21, 2023, the High Court issued an order confirming the transfer of the company's shares on November 29, 2023. On January 10, 2024, the hearing was adjourned until February 21, 2024 because the petitioner had not obtained a registration certificate. On February 21, 2024, the company applied to the court to submit and serve the company's confirmation before March 7, 2024, which was approved by the High Court, and the petition was adjourned until March 11, 2024.

The company has appointed legal counsel to seek legal advice and take all necessary actions to protect the rights and interests of the company and other stakeholders. Based on the facts, the company believes that the petition is an abuse of legal process and will consider applying to the High Court to dismiss the petition.

As of the date of this announcement, according to the directors' knowledge, knowledge and belief, the petition had no significant impact on the business operations of the Company and its subsidiaries.