According to Zhitong Finance App, Liaogang Co., Ltd. (02880) announced that Dalian Changxing Island Port Investment and Development Co., Ltd. (Changxing Development Company) and Dalian Changxing Island Port Co., Ltd. (Changxing Port Company, together known as “Liangchang Company”), in which the company participated, are currently facing serious operating difficulties due to heavy financial burdens. At the same time, due to the local government, the Dalian Changxing Island Economic and Technological Development Zone Management Committee (Management Committee) and Dalian Port Group Co., Ltd. (Dalian Port Group) have historical debt problems. Changxing Island Construction Investment, 100% of the shares held by the Management Committee) have been pledged to Dalian Port Group.

In order to resolve the problems left over from history and the difficult business situation and avoid extreme unfavorable situations, the Dalian Port Group plans to acquire 50% of the shares of Changxing Investment Development Company held by the Management Committee and 20% of Changxing Island Construction Investment's shares in Changxing Island Construction Investment to achieve “equity and debt offsetting” between the Dalian Port Group and the Management Committee. After the equity acquisition was completed, on the one hand, it solved the problems left over from the historical arrears of the Management Committee and the government. On the other hand, after the Dalian Port Group acquired shares in Liangchang Company, it is proposed to work with a syndicate to optimize the financial structure of Liangchang Company, resolve business difficulties, and promote the healthy operation and development of Liangchang Company. Dalian Port Group, the Management Committee, and Changxing Island Construction Investment are now inquiring whether the company will exercise priority purchase rights over the aforementioned shares. According to actual business conditions and financial arrangements, the company intends to relinquish the exercise of preferential purchase rights of shares traded between the two major companies.