Zhitong Finance App News, Territory Holdings (06999) issued an announcement. The company recently learned that the Chengdu Shuangliu District People's Court issued a decision to designate Beijing Kangda (Chengdu) Law Firm and Sichuan Zhongzheng Certified Public Accountants Limited as managers (managers) of Chengdu Lingyuan and Chengdu Runde.

As a result, Chengdu Lingyuan and Chengdu Runde will be managed by the manager, and the company has discussed and confirmed with its auditors, after which they will each no longer be consolidated into the Group's financial statements (cessation of consolidated accounting). The company expects the total assets of the Group to be reduced by approximately RMB 3.75 billion after discontinuing consolidated accounts. The Board believes that the cessation of consolidated accounts will not have a significant impact on the Group's cash flow and daily operations.

The company is seeking professional advice on this matter and will do its best to reach consensus with creditors to develop a restructuring proposal/solution acceptable to all stakeholders after balancing their legitimate rights and interests.