The financial news app, Smart Finance, reported that Kangsheng Corporation (002418.SZ) announced that on June 28, 2024, the company received a notice from controlling shareholder Changzhou Xingruo Enterprise Management Co., Ltd. (referred to as "Changzhou Xingruo") and its concerted action person Chongqing Tuoyang Investment Co., Ltd. (referred to as "Chongqing Tuoyang"). The notice stated that the administrator of China National Chemical Corporation Limited (referred to as "ChemChina") deemed that there is a high degree of correlation and corporate personality confusion among the 248 enterprises including Changzhou Xingruo, Chongqing Tuoyang, and ChemChina, and that the cost of distinguishing the assets of the 248 enterprises is too high. The administrator applied to the Beijing First Intermediate People's Court for substantive consolidation and bankruptcy liquidation of ChemChina and the other 248 enterprises, which would seriously harm the fair repayment interests of all creditors in separate bankruptcy liquidations.

As of the date of this announcement, there is uncertainty as to whether the substantive merger and bankruptcy liquidation application filed by the administrator of ChemChina will be accepted by the Beijing First Intermediate People's Court, and whether the aforementioned 248 enterprises will enter the merger and bankruptcy liquidation procedure.