On June 17, Hongda Xingye Co., Ltd. issued a prompt announcement on the BSE about the 'Hongda Debt Refund', stating that due to the closing price being lower than 70% of the current 'Hongda Debt Refund' conversion price for thirty consecutive trading days, according to the provisions of the Prospectus, the holder of the 'Hongda Debt Refund' convertible bond can exercise the right of repurchase once, and the repurchase declaration period is from June 18 to June 24. The company's current available monetary funds cannot cover the total remaining face value of 'Hongda Debt Refund'. Some of the company's bank accounts and assets have been frozen/sealed by the court, and the company is expected to be unable to redeem the repurchased principal and interest on time due to insufficient working capital. Due to the influence of factors such as insufficient funds, the company was unable to carry out normal production and operation activities for most of the year 2023, and there may be a situation of significant losses in the main business. In addition, large overdue debts of the Company and its subsidiaries may generate large overdue financial interest expenses. The company faces significant risks of bankruptcy and liquidation, and it is not ruled out that it may enter bankruptcy reorganization or liquidation procedures in the future.