Huazhang Tech (01673) bids 20 million yuan for two debts.

HUAZHANG TECH (01673) announced that on December 1, 2025, the seller Yunnan Asset Management Co., Ltd. listed their creditor's rights on the Jingdong Asset Auction Network Platform (https://zcpm.jd.com) for public tender. The group participated in the public bidding and emerged as the highest bidder. On December 17, 2025, the group entered into a creditor transfer agreement with the seller at a price of 20 million yuan. The acquired creditor's rights include two parts: first, the unpaid principal of 25.66 million yuan of Baoshan Xinshengtai Paper Industry (mainly engaged in paper manufacturing, recycling, etc., currently undergoing bankruptcy reorganization) and accrued interest/penalties, with corresponding mortgaged assets of approximately 97,000 square meters of land and 21,000 square meters of factory buildings; second, the unpaid principal of 10 million yuan of Zhaotong Junchi Trading (mainly engaged in sales of building materials, etc.) and accrued interest/penalties (unsecured). As of October 20, 2025, the total unpaid amount for both creditor's rights amounts to approximately 74.7916 million yuan. The board of directors believes that as the debtor company is undergoing bankruptcy reorganization, acquiring its secured debts is a strategic move. This is because as an investor in the debtor company's bankruptcy reorganization, the group will have to pay a similar amount to the seller according to the reorganization plan. Participating in the public bidding and making the advance payment provides the company with the opportunity to control the assets (including land and buildings) mortgaged by the debtor company to secure its debts to the seller in a timely and effective manner. In addition, the seller is one of the five secured creditors of the debtor company and holds a key voting right at the upcoming creditors' meeting to approve the reorganization plan. This is because the seller has confirmed that their debt claim is approximately 38.32 million yuan, accounting for about 26.1% of the total secured debts in the bankruptcy reorganization process. By entering into the creditor transfer agreement, the group will acquire all creditor's rights from the seller for the unpaid debts owed by the debtor company to the seller, thereby obtaining a crucial voting right at the creditors' meeting of the debtor company for the reorganization plan.