Jiu Rong Holdings Limited released its scheduled quarterly progress report on the implementation of measures designed to lift the auditors’ 2024/25 disclaimer of opinion and qualified scope limitations. The update covers the three months to 22 May 2026 and focuses on four action pillars: asset disposal, debt negotiations, refinancing, and working-capital optimisation.
Asset Disposal • The transfer of 11 new-energy public-transport charging stations in Hangzhou to Hangzhou Xihu New Energy Technology Co., Ltd. remains under superior-level approval; no completion date was provided.
Debt Negotiations and Litigation Outcomes • RMB230.00 million overdue loan: Jiu Rong New Energy and major creditor Westlake Electronics reached a court-mediated settlement on 19 May 2026. Repayment will be made in 50 instalments, with final maturity on 30 June 2030. Collateral enforcement rights were confirmed for the lender in case of default. • RMB49.00 million facility with Bank of Communications: A mediation agreement dated 21 May 2026 requires full settlement, including accrued and penalty interest, by 31 August 2026, secured by collateral. • Litigation with Hangzhou United Rural Commercial Bank is ongoing; the Xihu District People’s Court heard the case on 12 May 2026 without issuing judgment. As of the announcement date, RMB12.72 million of the Group’s bank deposits remain frozen.
Refinancing Progress • Since the previous update, the Group has renewed or extended interest-bearing loans totalling RMB29.30 million. New maturities fall between July 2026 and April 2027 (RMB18.00 million to 26 Jul 2026, RMB4.30 million to 5 Jan 2027, RMB7.00 million to 30 Apr 2027). • Discussions are ongoing with other banks to secure additional liquidity.
Working Capital and Cost Control • Cash levels improved marginally versus the prior quarter, driven by tighter administrative-cost controls and headcount optimisation. No formal shareholder or external working-capital agreements have yet been signed.
Progress on Audit Scope Limitations • Trade receivables from Banco Nationale de Cuba: No recovery recorded this quarter. The Group maintains reconciliation procedures and deems no impairment necessary, attributing the delay to Cuba’s FX restrictions and macro challenges. • Other receivables from former executive director Mr. Siu Chi Ming: Court-ordered disclosure concluded on 24 Mar 2026. New fund flows were identified on 15 May 2026 and will be further traced. Disposal of a mortgaged Tsuen Wan property has been executed by the mortgagee bank; monitoring of residual value distribution continues.
Governance and Transparency • The Board oversees execution, requires written evidence for all disposals and financings, and maintains ongoing dialogue with the external auditor. • Quarterly updates will continue until the disclaimer of opinion and scope limitations are fully resolved.
Investors are advised to exercise caution when dealing in the Company’s shares.