On October 2023, Guangdong Communication Technology (002152.SZ) announced that it will publicly list and transfer 51% of its shares in Huixing Kimco through the Guangzhou Property Exchange. The listing price is 181,102,039.68 million yuan. In December 2023, Jiangsu Yunfa Industrial Investment Co., Ltd. (hereinafter referred to as 'Jiangsu Yunfa') delisted and signed the 'Share Transfer Agreement' with a price of 181,102,039.68 yuan.
The company has issued 'Letter Urging Payment of Huixing Kimco Project Equity Transfer Payment' and 'Letter of Demand for Payment of Remaining Equity Payment for Huixing Kimco Project' to Jiangsu Yunfa on September 2, 2024 and September 10, 2024, respectively, urging and demanding Jiangsu Yunfa to pay the share transaction price and corresponding liquidated damages. Jiangsu Yunfa has not responded to the letters or fulfilled the payment obligations.
According to the 'Share Transfer Agreement' signed between the company and Jiangsu Yunfa, if Jiangsu Yunfa fails to pay the transaction price within the agreed period, they shall pay the company a liquidated damages for overdue payment. The liquidated damages shall be calculated at a rate of 0.05% of the amount payable per day of delayed payment; if the payment is overdue for more than 30 days, the company has the right to demand Jiangsu Yunfa to bear 20% of the default responsibility in accordance with the contract and has the right to terminate the contract.
As of September 19, 2024, Jiangsu Yunfa has not fulfilled the payment obligations as stipulated in the contract and the payment is overdue for more than 30 days. According to the provisions of the 'Share Transfer Agreement', the company has decided to terminate the 'Share Transfer Agreement'. The company has sent a notice of 'Termination of Share Transfer Agreement' to Jiangsu Yunfa by express delivery on September 19, 2024, and reserves the right to further pursue the liability for breach of contract by Jiangsu Yunfa.