HUAIJIN INTERNATIONAL (02738): A total of 52 equity judicial freeze records have appeared, and some equity has been successively issued with multiple freeze orders by different people's courts.

HUAJIN INTL (02738) announced that the mainland management team of the Group cross-referenced information obtained through two types of online channels: (i) official platforms of government and judicial authorities, including the National Enterprise Credit Information Publicity System and the official online disclosure platform of mainland Chinese judicial authorities; and (ii) commercial enterprise information integration platforms, used only for supplementary comparison. The records retrieved through the above channels showed that the Group had a total of 52 shares frozen by judicial orders, with some shares being subject to multiple freezing orders issued by different People's Courts. All of these freezes were caused by external third-party creditors submitting property preservation applications to the courts, and the civil and commercial disputes were related to outstanding debts by certain mainland subsidiaries of the Group. All the freeze orders issued by the courts mainly restrict the shareholders from disposing of the shares that are subject to judicial freezing. The disposal actions include transfer, pledge, using shares as collateral, and share registration changes. Furthermore, multiple creditors obtained property preservation orders against physical operational assets and bank accounts of the mainland subsidiaries of the Group due to overdue debt disputes. Some of these preservation cases correspond to the shares frozen records listed in the annex, while others only restrict assets without freezing the shares of the related subsidiaries. The Group has submitted an inventory of assets to the relevant People's Courts and obtained confirmation documents stamped with the court's seal, proving that the listed physical assets are under preservation. Multiple creditors have applied for preservation orders regarding the same batch of factory buildings, production machinery, and inventory, leading to the Group being unable to match individual debt claims with the corresponding assets, book value, or asset percentage. There are many independent preservation applications that only freeze physical assets or bank accounts and do not involve shares on the market. Due to overlaps in multiple preservation measures of operational assets, this announcement cannot list each independent preservation procedure. The preservation information presented is derived solely from public judicial online platforms. Since the courts do not provide asset lists or valuation documents split by individual cases, the Company cannot disclose quantitative asset details in this announcement. The online judicial public information may have delays in uploading or incomplete registrations, and court rulings may not always be uploaded to public platforms. This cross-verification work is based on publicly available information retrievable as of the date of this announcement. The Group holds preservation documents issued and stamped by multiple People's Courts, and all preservation measures apply to the same batch of operational assets. The Group cannot precisely match each preservation case, related creditors, and restricted physical assets, nor can it ensure that existing court documents cover all asset restrictions. There may be additional preservation applications in the future, with corresponding court rulings or delivery delays. Some related disputes have entered the enforcement stage, with creditors obtaining final judgments and submitting enforcement applications to the courts. As of the date of this announcement, all enforcement procedures are only in the asset preservation verification stage, without any compulsory auctions, forced disposals, or fund deductions of any preservation assets or bank accounts. The Group is actively negotiating debt restructuring and settlement solutions with relevant creditors and maintaining normal communication with major lending banks, and has not received any notices requesting early repayment or termination of credit facilities. This voluntary announcement marks the first time the Company has carried out a comprehensive inspection of preservation records for all mainland subsidiaries at a national level. Due to limitations arising from the large volume of data and decentralization of judicial records in various mainland provinces in the past, the Group had only conducted sampling checks on judicial disclosure platforms and did not comprehensively screen all historical records. Several share freeze records registered in previous years were fully organized and identified in this special inspection project. After completing this comprehensive inspection, the Board of Directors has developed monthly routine screening procedures covering all judicial disclosure platforms nationwide to timely identify new and historical preservation records and assess related disclosure obligations. All freeze and preservation orders only restrict the right to dispose of assets and do not impede the Group's legal ownership and daily operational use of the relevant assets. The affected subsidiaries continue their normal production, sales, and routine business operations; as of the date of this announcement, no preservation assets have been subject to compulsory enforcement measures. If required by the Listing Rules, the Company will issue further announcements in a timely manner. The Board of Directors understands that overlapping preservation measures by multiple creditors, combined with a large number of independent preservation cases restricting assets, make it difficult for the Company to quantify and list all preservation assets on a case-by-case basis. The Group's daily production, sales, and collection operations remain fully normal, without any enforcement actions taken against preservation assets. If the Group obtains separate itemized asset lists or valuation reports issued by the courts in the future, supplementary announcements will be made in due course.