According to the Zhitong Finance App, Guangzhou Langqi (000523.SZ) issued an announcement that Guangzhou Shunzhongyi Trading Co., Ltd. (hereinafter referred to as the “Respondent”), a holding subsidiary of the company, received the “Civil Ruling” from the Guangzhou Intermediate People's Court (“Guangzhou Intermediate Court”) from the Guangzhou Intermediate People's Court (“Guangzhou Intermediate Court”) on December 27, 2022 (“Guangzhou Intermediate Court”). The Guangzhou Intermediate Court ruled that the applicant, Guangzhou Shunzhongyi Trading Co., Ltd. (hereinafter referred to as the “applicant”), accepted the application for bankruptcy and liquidation of the respondent Guoite.

According to the announcement, the applicant and the respondent signed a “Product Sales Contract” on March 1, 2018. The contract stipulated that the applicant would purchase the goods from the respondent, that the applicant would pay the respondent a market price security deposit of 10,000 yuan, and that the respondent should pay the security deposit of 10,000 yuan before November 7, 2019 after the contract came into effect. The contract between the two parties ended on December 30, 2019. The applicant fulfilled the contract agreement and paid all the money for the goods purchased by the respondent. The applicant later requested a refund of the market price security deposit, but the respondent did not pay the applicant in accordance with the agreement. The respondent stated that it was unable to pay the above amounts due to serious problems with capital turnover. The applicant submitted relevant evidentiary materials to the Guangzhou Intermediate Court to prove that the respondent met the requirements for bankruptcy and liquidation.

The Guangzhou Intermediate Court ruled to accept the bankruptcy and liquidation application mentioned above. After entering the bankruptcy procedure, the company will lose control over it, and Quotte will no longer be included in the scope of the company's consolidated statement.