Shenzhen Meizhi Decoration Design Engineering Co., Ltd. Announcement on Debt Restructuring
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
I. Overview of Debt Restructuring
Shenzhen Meizhi Decoration Design Engineering Co., Ltd. (hereinafter referred to as the "Company") has filed lawsuits against the defendant Xinjiang Runlian Investment Co., Ltd. (hereinafter referred to as the "Defendant" or "Runlian Investment Company") in the People's Court of Qitun District, Urumqi City, due to contract disputes related to the exterior wall decoration engineering, facade glass curtain wall, stone curtain wall, and aluminum plate curtain wall entity wall insulation construction for the Eurasian Trade Center project (hereinafter referred to as "Subject Matter Engineering One") [Case No.: (2026) Xin 0106 Min Chu No. 148] and the aluminum alloy doors and windows manufacturing and installation engineering for the commercial building and the 2# office building of the Eurasian Trade Center project (hereinafter referred to as "Subject Matter Engineering Two") [Case No.: (2026) Xin 0106 Min Chu No. 147].
After careful evaluation by the Company and its lawyers, considering the significant time, economic, and execution risks associated with the litigation, and in order to reduce the uncertainty risk of business receivables and accelerate the collection of accounts receivable, the Company intends to sign "Mediation Agreements" with Runlian Investment Company and Xinjiang Tianrong Real Estate Development Co., Ltd. (hereinafter referred to as the "Third Party" or "Tianrong Real Estate Company") for Case One and Case Two. The "Mediation Agreement" for Case One stipulates that Runlian Investment Company and Tianrong Real Estate Company will offset the engineering fees of RMB 15,181,373.12 owed to the Company by transferring seven properties from their respective developments, "Bai Niao Lake Fortune Plaza" and "Urumqi YOYO Global Harbor". The "Mediation Agreement" for Case Two stipulates that Runlian Investment Company will offset the engineering fees of RMB 3,422,606.11 owed to the Company by transferring two properties from its development, "Urumqi YOYO Global Harbor". A total of nine properties will be used to offset the engineering fees of RMB 18,603,979.23 owed by Runlian Investment Company to the Company.
According to the appraisal report on the aforementioned properties issued by Zhejiang Zhonglian Asset Appraisal Co., Ltd., the market value of these properties is RMB 13,970,000.00. After the offset, the Company's debt restructuring loss is RMB 463.40 million. The above transaction constitutes debt restructuring.
On June 22, 2026, the Company held the 26th meeting of the Fifth Board of Directors, which deliberated and approved the "Proposal on Debt Restructuring". According to the "Shenzhen Stock Exchange Stock Listing Rules" and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Standardized Operation of Main Board Listed Companies", this debt restructuring does not constitute a related-party transaction, nor does it constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies". This debt restructuring is within the scope of the Board of Directors' approval authority and does not require submission to the shareholders' meeting for deliberation.
II. Basic Information of the Other Party in Debt Restructuring