HUAJIN INTL (02738) is expected to enter into a settlement agreement with relevant creditors by the end of August.

HUAJIN INTL (02738) announced that two of its affiliated companies have been listed as executed persons due to several debt disputes (mainly related to outstanding amounts under arrangements for goods delivery and financing leases), with a total amount of approximately RMB 130 million, of which the outstanding amount as of April 30, 2026 is approximately RMB 16 million. Both of these affiliated companies, the executive director and chairman of the board of directors Mr. Xu Songqing (Mr. Xu), as well as the legal representative of these two affiliated companies and the executive director and CEO of the company, Mr. Chen Chunniu (Mr. Chen), have been subject to restrictions on consumption since November 25, 2025. As the borrowers have failed to repay the debts according to the relevant repayment agreements, the relevant court has initiated execution proceedings against the debtors, including Mr. Xu and Mr. Chen, and issued consumption restriction orders. These consumption restriction measures become effective from the date of execution of the orders and will be lifted once the relevant individuals fulfill the obligations specified in the effective legal documents. As of the date of this announcement, the consumption restriction orders are still in effect. The company has been making every effort to pay substantial progress payments to the creditors, and Mr. Xu and Mr. Chen have informed the company that they are actively negotiating with the creditors to reach better settlement arrangements and repayment plans. Based on the information currently available to the company, it is expected that settlement agreements will be reached with the relevant creditors by the end of August 2026. The board of directors believes that the company's business operations are running normally. As of the date of this announcement, the board is not aware of any significant adverse impact of the above matters on the company's daily operations, financial condition, or the ability of Mr. Xu and Mr. Chen to perform their duties as directors. Furthermore, the consumption restriction orders only affect the personal consumption behavior of these individuals and will not interfere with the company's overall daily business operations. Additionally, several affiliated companies are also involved in other debt disputes. These matters are still ongoing, and the management is actively communicating with the relevant parties to reach settlement agreements on these matters. The board of directors is aware that further developments may occur with these matters and will continue to closely monitor the situation, informing the company's shareholders and potential investors of any new developments at the appropriate time. The board will also assess whether these matters constitute insider information for the company or impose any disclosure obligations under Chapter XIVA of the Securities and Futures Ordinance of Hong Kong and Rule 13.09 of the Listing Rules, and will issue further announcements when necessary.