Hejia Holdings (00704) received a notice of default from Cinda Hong Kong alleging that it constituted a fundamental breach of contract and must make up for a cumulative repayment of not less than HK$18 million

Zhitong Finance App News, Hejia Holdings (00704) issued an announcement relating to (among others) the Company and China Cinda (Hong Kong) Asset Management Limited and/or its subsidiaries entering into (I) supplementary agreements; (II) equity mortgage agreements; (III) charge and arrangement agreements; and (IV) third party escrow agreements. On November 4, 2026, the company received a notice of breach of contract issued by Cinda Hong Kong, believing that the company had not fully satisfied the minimum repayment obligation under the settlement agreement, declaring that the company had constituted a fundamental breach of contract; required the company to immediately correct the breach, fulfill the repayment obligation as agreed in the settlement agreement, and immediately make up to a cumulative repayment of not less than HK$18 million after receiving this notice; Cinda Hong Kong reserves the right to take all necessary legal action against the foregoing breach in accordance with the provisions of the settlement agreement and relevant laws and regulations, including but not limited to The exercise and/or enforcement of all rights, remedies, powers or discretion under the additional pledge documents in accordance with the settlement agreement, filing lawsuits or collection proceedings in court; and the issuance of Cinda Hong Kong's above reservations of rights and notice of breach of contract shall not constitute a waiver or change of any right, remedy or arrangement under the settlement agreement.

Since the company submitted a new enforcement application to the Luliang Intermediate People's Court on January 9, 2026, the subject of execution was that all amounts owed to the company by Energy Technology were equivalent to about RMB 160 million, and interest was continuously calculated until all outstanding amounts were settled, and the Luliang Intermediate Court never responded. Therefore, on September 18, 2026, the company commissioned AllBright to submit the latest enforcement application to the Luliang Intermediate Court based on Energy Technology's latest total outstanding arrears equivalent to about RMB 174 million. If the above enforcement can be implemented smoothly and in a timely manner, the company will have sufficient funds to cover the repayment obligation and continue to fulfill the settlement agreement. Therefore, on the one hand, the company will continue to pursue receivables owed to the company by Energy Technology; on the other hand, it will also consult legal opinions to study the impact and losses caused to the company by arguing with the Lu Liang Intermediate Court that it has failed to process enforcement applications in a timely manner in accordance with the law. At the same time, the company will also maintain communication and negotiations with Cinda Hong Kong.