MeiZhi Co., Ltd. MAGIC DECORATION CO.,LTD Stock Code: 002856 Stock Abbreviation: *ST MeiZhi Announcement No.: 2026-045 Shenzhen MeiZhi Decoration Design Engineering Co., Ltd. Announcement on Abnormal Stock Trading Fluctuations and Risk Warning The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.
Special Reminder:
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The stock trading price of Shenzhen MeiZhi Decoration Design Engineering Co., Ltd. (hereinafter referred to as the "Company") has cumulatively increased by 120.11% from March 23, 2026, to June 15, 2026. This cumulative increase deviates significantly from fundamentals, indicating overheated market sentiment and irrational speculation, with a risk of rapid decline at any time. Investors are kindly advised to pay attention to the risks of secondary market trading, invest rationally, and make prudent decisions.
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On May 15, 2026, Foshan Nanhai JinDeng Electronic Engineering Co., Ltd., a creditor of the Company, applied to the Futian Enterprise Restructuring Service Center (hereinafter referred to as the "Restructuring Center") for the restructuring of the Company. The Restructuring Center has sought the Company's opinion on this matter. The Company agrees to an out-of-court restructuring and has recommended the joint venture of AllBright Law Offices (Shenzhen) and Shenzhen ChengXin Certified Public Accountants (Special General Partnership) as the Company's restructuring coordinator. As of now, the Restructuring Center has accepted the out-of-court restructuring. According to the "Work Rules for the Futian Enterprise Restructuring Service Center (Trial)" and related regulations, the restructuring application submitted by the applicant to the Restructuring Center falls within the scope of out-of-court restructuring. The Company has not yet entered any bankruptcy proceedings such as judicial pre-restructuring or restructuring. Whether the Company can reach an out-of-court restructuring plan with the applicant and other relevant parties remains uncertain. This out-of-court restructuring does not represent that the Company will necessarily enter judicial pre-restructuring or restructuring proceedings.
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The Futian Enterprise Restructuring Service Center is a market-oriented and legalized public service platform for out-of-court restructuring established by the Futian District Government of Shenzhen. It is not a judicial organ and does not have judicial ruling authority.
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Out-of-court restructuring is based on voluntary negotiation among all parties and has no legally binding force. According to the "Work Rules for the Futian Enterprise Restructuring Service Center (Trial)," if the applicant requests to withdraw the restructuring application and there are no other qualified entities to continue the application, or if the Company fails to reach a restructuring plan or other relevant agreements with its major creditors, the Restructuring Center will terminate the restructuring.
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The Company's stock is at risk of delisting: On April 29, 2026, the Company disclosed its "2025 Annual Report." As of the end of 2025, the Company's net assets attributable to the parent company were -5,246.62 million yuan. According to Article 9.3.1 of the "Shenzhen Stock Exchange Stock Listing Rules," the Company's stock trading has been subject to a delisting risk warning by the Shenzhen Stock Exchange. Furthermore, because the net profit after deducting non-recurring gains and losses for the last three consecutive accounting years was negative, and the 2025 audit report indicated uncertainty about the Company's ability to continue as a going concern, it triggered Article 9.8.1 of the "Shenzhen Stock Exchange Stock Listing Rules," and the Company's stock trading has been subject to an additional risk warning. Although the Board of Directors has formulated specific measures to strive for the revocation of the delisting risk warning and other risk warnings, the ultimate realization is subject to various internal and external factors, and the execution of related work also has uncertainties. Investors are kindly advised to pay attention to investment risks.