On December 10, Gelonghui reported that *ST Fujian Aonong (603363.SH) announced that the court has ruled to approve the reorganization plan and terminate the company's reorganization procedure, entering the execution stage of the reorganization plan. According to the reorganization plan, the company intends to establish a trust plan for the assets to be divested, and the corresponding trust benefits will be one of the sources of debt repayment resources required to settle ordinary debts exceeding 20 million. The company will first transfer the equity of the subsidiaries to Zhangzhou Xiangcheng Aoshun Technology Co., Ltd. and Xiamen Aonong Modern Agriculture Technology Co., Ltd. After completion, the 100% equity held in Xiamen Aonong Modern Agriculture Technology Co., Ltd. will be transferred to Zhangzhou Xiangcheng Aoshun Technology Co., Ltd., and the 100% equity of Zhangzhou Xiangcheng Aoshun Technology Co., Ltd. will be wholly placed into the trust plan. The trust assets mainly include 100% equity of the platform company Zhangzhou Xiangcheng Aoshun Technology Co., Ltd., as well as the company's receivables from the equity transfer payments of Zhangzhou Xiangcheng Aoshun Technology Co., Ltd. and Xiamen Aonong Modern Agriculture Technology Co., Ltd. After the subsidiaries and platform company are divested into the trust, they will no longer be included in the consolidation scope of Fujian Aonong Biological Technology Group Incorporation.
Divesting loss-making subsidiaries will increase the company's investment income; Fujian Aonong Biological Technology Group Incorporation and other retained internal subsidiaries will have receivables from the divested subsidiaries, and Fujian Aonong Biological Technology Group Incorporation's fulfillment of guarantee responsibilities for the divested subsidiaries will generate receivables, with expected bad debt losses. The retained subsidiaries' fulfillment of guarantee responsibilities for the divested subsidiaries will provision or accrue liabilities based on the financial status of the guaranteed divested subsidiaries, and the specific impact amount will ultimately be determined by the results of the annual report audit.
