Stock Code: 002713 Stock Abbreviation: *ST Dongyi Announcement No.: 2026-075
Dongyirisheng Home Decoration Group Co., Ltd.
Announcement on the Reply to the 2025 Annual Report Inquiry Letter from the Shenzhen Stock Exchange
Dongyirisheng Home Decoration Group Co., Ltd. (hereinafter referred to as the "Company" or "Dongyirisheng") recently received the "Inquiry Letter on the 2025 Annual Report of Dongyirisheng Home Decoration Group Co., Ltd." (Annual Report Inquiry Letter [2026] No. 252) (hereinafter referred to as the "Inquiry Letter") from the Shenzhen Stock Exchange. Upon receipt, the Company's Board of Directors and management attached great importance to the matter, organized a thorough investigation, and hereby announce the reply as follows:
I. The annual report shows that the Company completed the execution of its reorganization plan during the reporting period. According to the plan, the Company implemented a capital reserve share issuance at a ratio of 12.68 shares for every 10 shares, totaling 531,868,204 shares. As of December 29, 2025, the aforementioned 531,868,204 shares have been registered in the special account for the disposal of bankrupt enterprise property opened by the administrator. Following the reorganization, the Company's controlling shareholder changed to Beijing Huazhu Technology Co., Ltd., and the actual controller changed to Zhang Jianhua. During the reporting period, the Company recognized a debt restructuring gain of 385 million RMB and other payables (reorganization debts) of 474 million RMB. Please explain:
(I) Combining the bankruptcy reorganization process, terms, and execution, explain the specific formation process and details of the large-amount debt restructuring gains (including but not limited to the determination of debt book value, valuation methods and basis for equity instruments, detailed calculation process and basis for restructuring gains, etc.), and whether the relevant accounting treatment complies with the relevant provisions of the "Accounting Standards for Business Enterprises."
Company Reply:
- Bankruptcy Reorganization Process, Terms, and Execution
(1) Reorganization Process
On October 16, 2024, a creditor applied to the Beijing First Intermediate People's Court (hereinafter "Beijing First Intermediate Court") for the Company's reorganization and the initiation of pre-reorganization procedures, citing the Company's inability to pay due debts and clear lack of solvency, while noting its reorganization value.
On October 18, 2024, the Company received the "Decision" [(2024) Jing 01 Po Shen No. 1179] from the Beijing First Intermediate Court, which decided to initiate pre-reorganization for the Company. On November 5, 2024, the Company received the "Decision" [(2024) Jing 01 Po Shen No. 1179-1] from the Beijing First Intermediate Court, designating Beijing Dacheng Law Offices as the temporary administrator during the pre-reorganization period.
On November 19, 2025, the Company received the "Civil Ruling" [(2024) Jing 01 Po Shen No. 1179] and "Decision" [(2025) Jing 01 Po No. 501] from the Beijing First Intermediate Court, which ruled to accept the reorganization application filed by creditor Beijing Pengyuan Xingda Trading Co., Ltd. and designated Beijing Dacheng Law Offices as the Company's administrator (hereinafter "Administrator").
On December 19, 2025, the Company's capital contributor meeting voted to approve the "Capital Contributor Rights Adjustment Plan of the Reorganization Plan (Draft) of Dongyirisheng Home Decoration Group Co., Ltd."
On December 21, 2025, the first creditors' meeting of the Company's reorganization voted to approve the "Reorganization Plan (Draft) of Dongyirisheng Home Decoration Group Co., Ltd." and the "Plan for Subsequent Creditors' Meetings and Voting Forms of Dongyirisheng Home Decoration Group Co., Ltd."
On December 21, 2025, the Company received the "Civil Ruling" [(2025) Jing 01 Po No. 501] from the Beijing First Intermediate Court. The court ruled to approve the "Reorganization Plan of Dongyirisheng Home Decoration Group Co., Ltd." (hereinafter "Reorganization Plan") and terminated the Company's reorganization proceedings.