China Huajun Group Updates on Auditor Disclaimer: HK$94.00 Million Debt-for-Equity Swap Completed, Disposal Talks Continue

Bulletin Express10-30

China Huajun Group Limited released a quarterly progress report on its previously announced action plan aimed at removing the auditor’s 2025 disclaimer of opinion related to going-concern uncertainties. The update highlights two primary initiatives: debt capitalisation and a potential asset disposal.

On 2 September 2026, the company issued 94.00 million new shares at HK$1.00 each under a specific mandate, fully settling the corresponding indebted amount through a debt-for-equity swap. Management noted that the HK$94.00 million capitalisation lowers the Group’s gearing and curtails future interest expenses.

Separately, discussions on a potential disposal of certain assets remain in progress. Terms have yet to be finalised and no definitive agreements have been signed as of the announcement date.

The Board affirmed its commitment to executing the action plan and will provide further disclosures as developments arise.

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