Zhitong Finance App News, China International (01064) issued an announcement disclosing the latest situation regarding the so-called “liquidation petition” of Guangzhou Zhengda, an indirect subsidiary of the Group. The Group's property rights in Guangzhou are wholly owned by Guangzhou Zhengda, while Guangzhou Zhengda is 100% owned by Hong Kong Chia Tai (which is an indirect subsidiary of the Group).

In mid-May 2021, Guangzhou Zhengda received the “Civil Ruling” issued by the Guangzhou Intermediate Court. The ruling rejected the ruling on the compulsory liquidation application filed by the Vietnamese Housing Private Enterprise on the grounds that “the two parties still have a major dispute over whether Guangzhou Zhengda was dissolved, the company's main assets, and the company's rights and interests, and the dispute has not been confirmed by litigation or arbitration so far”

The revocation ruling made by the Guangdong Provincial High Court mainly involved: annulling the rejection ruling made by the Guangzhou Intermediate Court; and ordering the Guangzhou Intermediate Court to hear the case.

In July 2023, Guangzhou Zhengda filed a retrial application with the Supreme People's Court in accordance with the law, requesting (among others) to rescind the cancellation ruling made by the Guangdong Provincial High Court; and that the case be tried by the Supreme People's Court. To date, no response has been received from the Supreme People's Court.

In October 2023, Hong Kong Zhengda obtained independent professional opinions, confirming that the rights and interests of Yuefang State-owned Enterprises in Guangzhou are still state-owned assets according to law, and have not been inherited by Vietnam Housing Private Enterprises until now. Based on this new evidence, Hong Kong Zhengda sought evidence from Yuexiu State-owned Assets Management Co., Ltd. (the seller of Vietnam Housing State-owned Enterprises), the Guangzhou Municipal State-owned Assets Supervision and Administration Commission, and various departments of the Guangzhou Municipal People's Government. The investigation is still ongoing, and no definitive conclusion has been reached so far.

From time to time, Guangzhou Zhengda complained to leaders of the Guangdong Provincial High Court and the Guangzhou Intermediate Court that Guangzhou Zhengda had suffered unfair judicial procedures over the past few years. The most recent complaint was filed in January 2024.

Considering the accounting treatment of Guangzhou Zhengda's performance excluded from the company's consolidated accounts, it is expected that the company's consolidated financial statements for the year ended December 31, 2023 will be revised. Unless unforeseen circumstances occur, the company will announce the 2023 results on or before May 31, 2024, and the 2023 report will be distributed in mid-June 2024.

Furthermore, trading of the company's shares on the main board of the Hong Kong Stock Exchange will continue to be suspended pending publication of the 2023 results.