Jiu Rong Advances Asset Sales and Refinancing to Address Going-Concern Audit Disclaimer

Jiu Rong Holdings Limited ( (HK:2358) ) has shared an update.

Jiu Rong Holdings has issued a quarterly update on its action plan to address a disclaimer of opinion from its auditor, which raised material uncertainties about the Group’s ability to continue as a going concern. The company is pursuing asset disposals, creditor negotiations, and refinancing initiatives to shore up liquidity and mitigate these concerns.

To relieve cash pressure, the Group has completed the sale of 11 bus charging stations in Hangzhou, with shareholder approval obtained and asset handover under way, which is expected to bolster working capital. Management is also in active talks with its major creditor, Westlake Electronics, and key suppliers on extensions, interest reductions, and debt-to-asset swaps, while having secured renewals and extensions on about RMB82.3 million of interest-bearing borrowings, signalling incremental progress in stabilising its financial position.

More about Jiu Rong Holdings Limited

Jiu Rong Holdings Limited is a Hong Kong-listed company incorporated in the Cayman Islands, operating through a group structure that includes assets such as new energy bus charging stations and investment properties in mainland China. The Group relies on bank borrowings and supplier credit, making liquidity management and refinancing crucial to sustaining its ongoing operations and meeting financial obligations.

Average Trading Volume: 30,811,354

Technical Sentiment Signal: Sell

Current Market Cap: HK$65.66M

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