C HEALTH GP (08225.HK): Provides Update on Receivables Recovery; Applies to Set Aside Rejected Arbitration Award against Related Party, Collects RMB 2.088 Million from Cooperative Customers since June
NewTimeSpace News: On 2 September 2026, China Health Group Inc. (stock code: 08225.HK) announced, on a voluntary basis, an update on its accounts receivable recovery efforts. As disclosed in its 2024 annual report, the carrying amount of the company's receivables totaled RMB 128 million as of 31 December 2024, for which impairment provisions have been fully made in accordance with accounting standards; the receivables mainly arose from the group's ordinary course of business.
In respect of receivables from related parties, the company's arbitration claims have been dismissed in full, and the company has engaged lawyers to file an application with the court of competent jurisdiction to set aside the arbitration award, which is currently under review as the company follows up on the court's internal procedures. In respect of receivables from non-related parties: for customers with good cooperation and a positive repayment attitude, the company has reached consensus with relevant customers and achieved continued collections through optimized communication, active negotiation and on-site visits, with newly collected amounts totaling RMB 2.088 million from 3 June 2026, the date of the previous collection progress announcement, to the date of this announcement, and repayment plans being implemented as scheduled; for customers with long-outstanding receivables or operational difficulties, the company has engaged third-party professional institutions for assessment and disposal while initiating corresponding legal proceedings; and for receivables that are difficult to recover, the company has taken all lawful measures, including applying to have the relevant debtors included in the list of judgment defaulters, and will closely monitor their asset conditions.
To fundamentally improve the quality of its working capital, the company has established a receivables management committee led by its finance department with multi-department coordination to focus on collection work, and has strengthened end-to-end internal controls from customer credit assessment to account aging management. The company said it will continue to follow up on the review of the application to set aside the arbitration award and decide on next legal steps based on the court's final ruling, continue negotiations with customers operating normally to ensure collections in line with repayment plans, and fulfill its information disclosure obligations under the Stock Exchange rules in a timely manner; the final outcome of receivables recovery is subject to uncertainty arising from various factors, and investors should note the investment risks.
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