Beijing Huiyuan issues an open letter to all shareholders and convertible bondholders.

The open letter stated that shareholders of Zhejiang Wenshenghui proposed to use Beijing Huiyuan Capital's capital reserve to make up for losses, but currently more than half of Beijing Huiyuan's total capital reserve amount is uncertain. Up to now, the majority of creditors have not yet received Beijing Huiyuan's equity, and some creditors can still choose different repayment methods outside of equity, which will cause changes in the capital reserve amount. If the losses are to be offset by the capital reserve at this time, it means disposing of the uncertain capital reserve, forcing the relevant creditors to passively confirm the debt-to-equity swap, which indirectly deprives the creditors of their right to choose.