NEW CONCEPT-NEW (02221) announced that on December 26, 2022, its indirect wholly-owned subsidiary, Yisheng (Tianjin), as the lender, entered into a loan agreement with Shenzhen Dingxin, as the borrower. Under the agreement, Yisheng (Tianjin) agreed to extend a loan of RMB19 million to the borrower, with a term of two years. On the date of the loan agreement, the borrower paid the first installment of interest amounting to RMB1.9 million in accordance with the terms. Subsequently, on December 1, 2023, Mr. Jiang Jinbo, representing the borrower, repaid RMB1.05 million as partial repayment of the loan principal and interest. On April 1, 2024, Yisheng (Tianjin) and the borrower entered into a debt offset agreement, under which both parties mutually agreed to offset RMB1.43 million of the loan principal against the corresponding amount owed by Yisheng (Tianjin) to the borrower. However, Shenzhen Dingxin failed to repay the loan principal by the due date. As of the announcement date, the total outstanding principal under the loan amounts to approximately RMB16.8 million. Since the loan was granted, the company has been regularly monitoring its status. To safeguard its assets, the company has been actively pursuing loan recovery, including negotiating settlement with the borrower and taking collection actions by issuing demand letters in December 2024, March 2025, and June 2025. Given the status of the loan, the company has fully recognized an impairment loss for the loan in its annual report for the year ended March 31, 2025. Nevertheless, the company will continue to make every effort to recover the loan. As of the announcement date, Yisheng (Tianjin) has engaged Chinese legal counsel and is conducting public inquiries to identify any assets owned by Shenzhen Dingxin and its shareholders within China, with the aim of recovering the Dingxin loan.
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