According to the Zhitong Finance App, Huahe Holdings (09938) announced that the company's subsidiary submitted a claim certificate of approximately HK$38 million to the provisional liquidator on March 28, 2024, including unpaid items, ordered or prepaid materials, and potential profits that may be forced to be forfeited. The claims relate directly to three construction projects. The Group is seeking legal advice on this matter.

The company is still preparing the Group's annual results for the year ended March 31, 2024. In view of the above situation, the Board of Directors believes that the liquidation of the above clients will have a significant adverse impact on the overall financial and operating conditions of the Group.