Kaired Holdings Co., Ltd. and all members of the board guarantee that the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.
Important Content Reminder:
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On December 12, 2020, Kaired Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Kaired") disclosed the "Notice on the Creditor's Application for Reorganization" (Announcement No.: 2020-L083). The Company's creditors applied to the Jingmen Intermediate People's Court (hereinafter referred to as "Jingmen Court" or "the Court") for the Company to undergo reorganization, and the Court has accepted the case for review. As of now, there is significant uncertainty regarding whether the reorganization application will be accepted by the Court and whether the Company will enter the reorganization process.
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On October 14, 2021, the Company applied to the Jingmen Court for pre-reorganization; on October 15, 2021, the Jingmen Court issued the "Decision" (2021) E 08 Po Shen 1 No. 1, deciding to initiate pre-reorganization for the Company and appointing Shandong Bohanyuan Law Firm as the temporary administrator (hereinafter referred to as "the Administrator"). The Jingmen Court's decision to initiate pre-reorganization does not represent the Court's final acceptance of the Company's reorganization application, nor does it mean that the Company has formally entered the reorganization process. If the Jingmen Court formally accepts the Company's reorganization application, the Company will cooperate with the Court and the Administrator to carry out relevant reorganization work and fulfill its legal obligations as a debtor.
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If the Court formally accepts the Company's reorganization application and the Company successfully implements the reorganization plan, it will help improve the Company's asset-liability situation and operational status, promoting the Company's return to a sustainable development track. If the implementation is not successful, the Company will face the risk of being declared bankrupt. If the Company is declared bankrupt, according to Article 14.4.17 (6) of the Shenzhen Stock Exchange Listing Rules, the Company's stock will face the risk of being delisted.
I. Overview of the Court's Agreement to Initiate Pre-Reorganization
- Background Creditor Wang Jianwei applied for the Company to undergo reorganization, as detailed in the Company's disclosure on December 12, 2020, regarding the "Notice on the Creditor's Application for Reorganization" (Announcement No.: 2020-L083). According to relevant regulations from the Supreme People's Court and the China Securities Regulatory Commission, the Court must perform relevant review procedures before accepting the reorganization of a listed company, which is relatively complex and time-consuming. To expedite the reorganization process and improve the success rate, the Company applied to the Court for pre-reorganization. During the pre-reorganization period, the Administrator, creditors, debtors, investors, and other stakeholders will communicate and negotiate on reorganization matters. The temporary administrator can also carry out subsequent work based on the pre-reorganization efforts, thereby gaining more time for the subsequent reorganization work and accelerating the overall progress, effectively increasing the success rate of the reorganization.