China Silver Technology Holdings Limited disclosed an update on its litigation over loan defaults totaling RMB336.00 million. The loans, originally extended by a bank to on-shore subsidiaries Zhongshan Tat Chun Printed Circuit Board and Guangdong Tat Chun Electronic Technology, are guaranteed by both offshore and on-shore group entities and secured against key manufacturing assets in Zhongshan City.
As of 31 December 2024, the group had pledged buildings, right-of-use assets and construction-in-progress valued at HK$453.93 million to secure banking facilities. Bank borrowings of HK$296.04 million were classified as current liabilities, of which HK$293.04 million were in default, alongside HK$83.38 million in overdue bill payables—largely overlapping with the disputed loans.
PRC courts have issued first-instance judgments holding all guarantors jointly and severally liable and allowing disposal of the pledged land and plants to offset the debt. Appeals were rejected.
In May 2026, a state-owned asset management company (AMC) acquired all rights to the defaulted loans and has been substituted as plaintiff. China Silver Tech is in talks with the AMC to explore an amicable resolution, but no binding agreements have been reached.
Trading in the company’s shares has been suspended since 2 October 2025 and will remain halted until resumption conditions set by the Stock Exchange are met. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.
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