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On April 22, senior officials of Changshu municipal government and executives of Zhongli Group?went to Xiamen to discuss with Xiamen C&D Inc.?on industrial investment cooperation. This visit was not only conducive to promoting the restructuring process of Zhongli Group, and improving the supply chain cooperation mechanism of the two sides, but also greatly accelerated the pace of Zhongli Group to step off the debt crisis and business difficulties.

To date, Zhongli Group has made considerable progress in advancing the pre-restructuring process. The first stage of work, such as verification of assets, identification of restructuring value, and demonstration of restructuring plans, has been successfully completed. The second stage of work, i.e., dual-line reporting of listed company restructuring, is advancing in the critical stage. Zhongli Group is expected to truly realize reform and get out of difficulties through judicial channel.

On August 21, 2023, Zhongli Group signed a restructuring investment (intention) agreement with Changshu Guangsheng New Energy Co., Ltd., a wholly-owned subsidiary of industrial investor?Xiamen C&D Inc.?As a member company of Xiamen C&D Corp. Ltd, Xiamen C&D Inc. has multi-field, all-round and multi-level industrial resources, and is highly compatible with Zhongli Group’s business, capable of providing a strong impetus for the subsequent sustainable operation and development of Zhongli Group.

During the pre-restructuring period, the industrial investor has paid 25 million yuan investment deposit to the bank account of the interim manager of Jiangsu Zhongli Group Co., Ltd. At the same time, in order to help stabilize the operating value of Zhongli Group and maintain the market position and brand influence of Zhongli Group, Zhongli Group and Xiamen C&D Inc.?have reached a number of cooperation agreements and intentions during the transition period, under the strong support and assistance of the CPC Changshu Municipal Committee and Changshu municipal government. The interim manager and Zhongli Group have also accompanied Xiamen C&D Inc.?to visit a number of production bases in Ningxia, Qinghai, Shandong, and Changzhou, and conducted friendly and in-depth exchanges with the local governments of the production bases on the future operation planning of the bases.

In the future, with the strong support of the Changshu municipal government, Zhongli Group and Xiamen C&D Inc. will further strengthen the cooperation mechanism between the two sides, effectively advance the restructuring, promote the smooth implementation of the restructuring of Zhongli Group as soon as possible, implement relevant policies, and promote the win-win development of industrial cooperation.