Huayi Brothers: Court decides to start pre-restructuring and appoints temporary administrator.

Huayi Brothers announced on April 23rd that the company received a "Decision Document" from the Intermediate People's Court of Jinhua City, Zhejiang Province on April 23rd, deciding to initiate a pre-reorganization procedure for the company and appointing Zhong Lun Law Firm in Beijing and Zhejiang Zhiren Law Firm as the temporary managers for the pre-reorganization of the company. Previously, creditor Beijing Tairui Feike Technology Co., Ltd., applied to the court for reorganization and pre-reorganization of the company on the grounds that the company was unable to repay its debts that were due and clearly lacked the ability to repay, but had reorganization value. The company stated that initiating pre-reorganization does not mean that the court has formally accepted the reorganization application, and there is significant uncertainty as to whether the company will enter into the reorganization process. If the court rules to accept the reorganization application, the company's stock will be subject to a delisting risk warning; if the reorganization fails or is declared bankrupt, the company's stock will face the risk of being delisted.