According to the Zhitong Finance APP, Ra Silk Road (00274) announced that Huadian City Huafeng Mining Co., Ltd., as the seller, and the Group, as the buyer, entered into a purchase agreement to acquire 51% equity of Huadian City New Asia Mining Co., Ltd. (target company) for a consideration of 32 million RMB. The acquisition was completed on July 1, 2023, and the target company's performance, assets, and liabilities have been comprehensively incorporated into the company's financial statements and accounted for as subsidiaries. However, due to cash flow issues, the Group has not yet made the payment in accordance with the payment terms of the purchase agreement.

Due to the inability to make the payment, the company is unable to access the target company's management accounts, books, and records to prepare the comprehensive financial statements for the six months ended September 30, 2024 (2024 interim results). Although the board of directors has made every effort to negotiate a settlement solution with the seller, which may include installment payments or other alternative arrangements acceptable to both parties, the board believes that the company may not be able to publish the preliminary announcement of the 2024 interim results by the end of November 2024 according to Rule 13.49(6) of the Listing Rules, and as such, trading in the company's shares may be suspended under Rule 13.50 of the Listing Rules.