*ST Mubon: Subsequent Risk of Bankruptcy Declaration and Liquidation Due to Failed Restructuring

Recently, ST Mubang (603398.SH) issued an announcement regarding abnormal fluctuations in its stock trading. According to the announcement, the company’s stock price has deviated by more than 12% in cumulative closing prices over three consecutive trading days. In accordance with the relevant provisions of the Shanghai Stock Exchange Trading Rules, this constitutes an abnormal fluctuation in stock trading.

In response to the abnormal trading activity, the company conducted an investigation into the matter and issued inquiries to its controlling shareholder and actual controller. After self-examination, the company confirmed that its production and operations are normal, with no significant changes in daily business activities. The market environment and industry policies have not undergone major adjustments, and there have been no large fluctuations in production costs or sales. Internal production and operational order remain normal. Additionally, the company verified with its controlling shareholder, Jiangxi Mubang New Energy Holding Co., Ltd., and the actual controller, Liao Zhiyuan, that as of the date of this announcement, aside from the major matters related to the pre-restructuring already disclosed, there are no other significant undisclosed information that should be disclosed, including but not limited to major asset restructuring, share issuance, significant transactions, business reorganization, share repurchases, equity incentives, major business collaborations, or strategic investor introductions. Furthermore, the company has not found any media reports or market rumors that could significantly impact its stock trading price, nor does it involve market hot concepts.

The company has highlighted several major risks. First, there is a significant risk of delisting due to revenue falling below 300 million yuan. The annual review accountant’s special statement indicates that it cannot yet confirm whether the company’s operating income, excluding non-core business income and non-substantive income, will exceed 300 million yuan in 2025. Second, there is a risk of delisting if the annual review accountant issues a non-unqualified opinion on internal control. For example, if the 2025 financial statements or internal controls are audited with a non-unqualified opinion, the company’s stock will be terminated from listing on the Shanghai Stock Exchange. Third, there are other risks of delisting, even if the court formally accepts the reorganization application, as there remains a risk of bankruptcy declaration and liquidation if the reorganization fails. Fourth, the company and its actual controller received a “Preliminary Administrative Penalty Notice,” mainly related to financial data from the 2023 and 2024 semi-annual reports, which may impact the initial figures for 2025. Fifth, whether the company can enter reorganization procedures remains uncertain; the Nanchang Intermediate Court’s initiation of pre-restructuring does not mean the formal acceptance of the reorganization application. Lastly, according to relevant regulations, if the court approves the reorganization application, the company’s stock will be subject to additional delisting risk warnings.