CHONGQING M&E (02722.HK): Wholly-Owned Subsidiary Files for Bankruptcy Liquidation, Court Acceptance Uncertain

NewTimeSpace News: On 28 August 2026, Chongqing Machinery & Electric Co., Ltd. (stock code: 02722) announced that it had received a written notice from Chongqing Gongye Funeng Chuangxin Center Co., Ltd. (the Enabling Center), a directly wholly-owned subsidiary of the Company as of the date of the announcement, that the Enabling Center had submitted a bankruptcy liquidation application against itself to the Fifth Intermediate People's Court of Chongqing. The application was made on the grounds that the Enabling Center was unable to repay its due debts to creditors and that its assets were insufficient to settle its liabilities.

As of the date of the announcement, the Company had not received any ruling from the Court in respect of the application, and uncertainty remains as to whether the Court will accept the application. If the Enabling Center enters bankruptcy proceedings, it will be taken over by an administrator appointed by the Court and will no longer be consolidated into the Company's consolidated financial statements.

According to the announcement, the Company considers that its overall operations remain normal in all material respects, and the bankruptcy of the Enabling Center is not expected to have a material impact on the Company's consolidated profit for the current period or subsequent periods, with the final actual impact subject to the outcome of the bankruptcy proceedings and the auditors' review. The Company will exercise its shareholder rights in accordance with the law, cooperate with the Court and the administrator, protect the interests of the Company and its shareholders to the greatest extent, and fulfill its disclosure obligations in a timely manner in accordance with the Listing Rules and the Securities and Futures Ordinance.

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