Financial Services Association, December 29 (Reporter Hu Haoqiong) Tonight*ST Xinlian (00062.SZ) announced that the implementation of the company and subsidiary restructuring plans has been completed, and an application is being made to cancel the delisting risk warning implemented by the company's shares due to the restructuring. A CIFA reporter learned that it has taken more than 7 months since *ST Xinlian applied for bankruptcy and restructuring with the Beijing First Intermediate Court and applied for the commencement of pre-restructuring.

“The successful implementation of judicial restructuring has resolved the corporate debt crisis, lifted the delisting risk warning, repaired corporate credit, optimized asset structure, and continued to increase profitability.” A company source told the Financial Services Association reporter.

According to the announcement, *ST Xinlian, a wholly-owned subsidiary of the company, Xinhualian Land, and Changsha Tongguanyao each received the “Civil Ruling” (2023) Beijing No. 389 (1), (2023) Beijing 01 breaking No. 390, and (2023) Beijing 01 breaking No. 391 1) from the Beijing First Intermediate People's Court today. The ruling confirmed the completion of the company's and subsidiary restructuring plans and terminated the restructuring procedures of the company and the two subsidiaries mentioned above.

*ST Xinlian said in an announcement that after the implementation of the restructuring plan is completed, it is expected that the size of the company's interest-bearing liabilities will drop drastically, the balance ratio will return to a reasonable level, and the balance and liability structure will be significantly optimized. At the same time, during the implementation of the restructuring plan, asset divestments were used to establish service trusts. The company will no longer be included in the scope of the company's consolidated statements under the trust. The company's business structure will be further improved, the main cultural tourism business will become more prominent, and it will rely on comprehensive support such as incremental capital, management, and resource integration from the restructuring investors to enhance the company's profitability and ability to operate sustainably. The completion of this restructuring plan is expected to have a positive impact on the company's 2023 financial data. The final impact amount is based on the audit results of the company's annual review agency.

On the same day, *ST Xinlian applied to the Shenzhen Stock Exchange to withdraw the corresponding delisting risk warning. The Shenzhen Stock Exchange will decide whether to agree to the company's stock transaction to withdraw the delisting risk warning within 15 trading days after receiving the company's application.

However, according to the announcement, if the company's withdrawal of the application for a delisting risk warning due to restructuring is approved by the Shenzhen Stock Exchange, *ST Xinlian will still be subject to other risk warnings due to negative net assets at the end of the 2022 audited period, which net profit before and after deducting non-recurring profit and loss in the last three fiscal years, and the 2022 audit report shows that there is uncertainty about the company's ability to continue operating. The company's stock abbreviation is still “*ST Xinlian”, and the stock code is still “000620.” The company's stock is still traded on risk warning boards, and the daily rise and fall limit of the stock price is still 5%.

According to financial reports, in the first three quarters of this year, the company achieved operating income of 2.67 billion yuan and net profit to mother of -1,758 billion yuan.

With the strong recovery of the tourism market, *ST Xinlian's revenue from the main cultural tourism business also increased significantly compared to last year. A CIFA reporter learned that during the Mid-Autumn Festival National Day peak season this year, *ST Xinlian's three major scenic spots (Changsha Tongguanyao Ancient Town, Wuhu Jiuzi Ancient Town, and Xining Children's Dream Land) increased 178% year-on-year, and the total operating revenue of its hotels increased 122% year-on-year during the holiday period.