Shenzhen Deren Electronic's subsidiary Meta plans to apply for a creditor reconciliation procedure.

Shenzhen Deren Electronic (002055.SZ) announced that its holding subsidiary Meta System S.p.A. (hereinafter referred to as "Meta") is facing operational difficulties with negative net assets and inability to repay maturing debts. Meta had previously been engaged in voluntary negotiations with relevant creditors, but due to delays in the capital increase process by JNM Technologies (Taizhou) Holdings Co., Ltd. (hereinafter referred to as "JNM") and failure to receive the capital increase funds on time, the voluntary negotiations were unsuccessful. In accordance with Italian law requirements, Meta is required to initiate Composition with Creditors Proceedings (hereinafter referred to as "CP procedures") with the local court. CP procedures are court-supervised in-court procedures for Italian companies, where the debtor submits the application to the court, submits plans and creditor repayment proposals within a specified period, the creditors vote on the repayment plan, and it is approved by the court to balance the company's business and financial situation. Entering CP procedures allows Meta to maintain normal operations under legal protection, continue to receive support from clients and suppliers, and effectively address low asset levels and financial constraints through the introduction of investors and reaching settlements with creditors. Otherwise, creditors or Meta's statutory audit committee have the right to file for bankruptcy liquidation with the court. Meta's main business is in the field of new energy vehicle onboard power management modules, and it is an important part of the automobile industry chain with core technological advantages and a high-quality customer base in the field of onboard power management modules. In the CP procedures, some clients and suppliers are willing to continue to support Meta. Meta has hired professional intermediaries to prepare for investor engagement and settlement plan design. Entering CP procedures is an important way for Meta to avoid further deterioration of debt risks, handle creditor debts properly and reasonably, and turn around its financial difficulties.