2021 Annual Work Report of the Board of Directors
In 2021, the Board of Directors of Xinguang Yuancheng Co., Ltd. strictly adhered to the Company Law, Securities Law, Shenzhen Stock Exchange Listing Rules, Articles of Association, and Board Meeting Rules, fulfilling its responsibilities and carrying out various tasks. The following is a report on the Board's work in 2021:
1. Review of 2021 Work
Due to previous years' violations by the controlling shareholder regarding fund occupation and guarantees, the company has been trapped in a debt default situation for several years. During the reporting period, the company continued to promote debt risk resolution measures, actively communicating and negotiating with creditors and guarantors. Agreements were reached with some creditors and guarantors, resulting in debt settlement agreements and partial waivers of interest and penalties, alleviating some debt risks and reducing the company's debt-to-asset ratio.
During the reporting period, at the request of creditors, the Jinhua Intermediate People's Court approved and appointed a temporary administrator, initiating a pre-restructuring process. Investors recruited by the temporary administrator submitted preliminary plans to eliminate the impact of the controlling shareholder's violations on the company through judicial restructuring while resolving overall debt risks.