*St Carey (002072): Progress In Restructuring

Kairuide Holding Co., Ltd. announcement on the progress of restructuring

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions in the announcement.

1、 Restructuring progress

On November 5, 2021, kairuide Holdings Co., Ltd. (hereinafter referred to as "the company" or "kairuide") received (2021) e 08 Po Shen No. 1 civil ruling, 2021 e 08 FA Wei Jian Zi No. 34 decision and (2021) e 08 Po 1 announcement issued by Jingmen intermediate people's court (hereinafter referred to as "Jingmen middle court" or "court"), Jingmen intermediate people's court ruled to accept the company's reorganization application, and appointed the liquidation group of kairuide Holding Co., Ltd. as the company's manager; At the same time, creditors should declare their claims to the company's manager before December 5, 2021. The first creditors' meeting is scheduled to be held at 2:00 p.m. on December 6, 2021 in the conference room, building c4-1, building c4-1, Duodao District, high tech Zone, Jingmen City, Hubei Province. For details, please refer to the announcement on the court's ruling on accepting the company's reorganization and warning of delisting risks when the shares are superimposed (Announcement No.: 2021-l077) and the announcement on the declaration of reorganization claims and the holding of the first creditors' meeting (Announcement No.: 2021-l078) disclosed by the company on November 8, 2021. After entering the reorganization procedure, the manager and the company perform their duties according to law and actively promote the reorganization work.

On November 12, 2021, the company received the letter of decision (2021) No. E08 Minbo 1 delivered by Jingmen intermediate people's court, allowing the company to manage property and business affairs on its own under the supervision of the administrator. For details, please refer to the announcement on the court's permission to manage property and business affairs during the reorganization period (Announcement No.: 2021-l081) disclosed by the company on November 13, 2021.

On December 6, 2021, the company held the first meeting of creditors and group of investors, and passed the property management and price change plan of Kairui Holding Co., Ltd. and the reorganization plan of Kairui Holdings Co., Ltd. (Draft). For details, please refer to the announcement on the convening and voting results of the first creditors' meeting (Announcement No.: 2021-l094) and announcement on the resolution of the investor group meeting (Announcement No.: 2021-l093) disclosed by the company on December 7, 2021. The company has submitted an application for approval of the reorganization plan to the Jingmen intermediate people's Court on December 6, 2021. There is uncertainty whether it can obtain the approval of the Jingmen intermediate people's court.

2、 Risk tips

1. The reorganization plan (Draft) of Kairui Holding Co., Ltd. has been approved by all voting groups, and it is uncertain whether it can be approved by the court.

2. There is a significant risk that the company will be terminated due to restructuring failure. Jingmen intermediate people's court has ruled to accept the reorganization of the company. If the company fails to carry out the reorganization smoothly, the company will be declared bankrupt. If the company is declared bankrupt, according to article 14.4.17 (6) of Shenzhen Stock Exchange Stock Listing Rules, the company's shares will face the risk of delisting..

3. There is a significant risk that the company will be terminated. Due to the negative net assets, negative net profits and operating income of less than 100 million yuan at the end of 2020, and the court has accepted the reorganization of the company according to law, the company's stock trading has been given delisting risk warning. At the same time, due to the negative net profit after deducting the non recurring profit and loss attributable to the shareholders of the listed company in the latest three accounting years (2018, 2019, 2020), and the annual audit report in 2020 shows that the company's ability to continue as a going concern is uncertain, and the company's stock trading is subject to other risk warnings. According to article 14.3.11 of the Listing Rules of Shenzhen Stock Exchange: "listed companies are affected by the rules

Article 14.3.1 in the case of items (1) to (3) of paragraph 1 of article 14.3.1 after the delisting risk warning is implemented for the stock trading, the exchange decides to terminate the listing of its shares in case of any of the following circumstances in the first accounting year: (1) the audited net profit is negative and the operating income is less than 100 million yuan, Or the net profit of the latest accounting year after retroactive restatement is negative and the operating income is less than 100 million yuan; （2） The audited ending net assets are negative, or the ending net assets of the latest accounting year after retroactive restatement are negative; （3） The financial accounting report is issued with qualified opinion, unable to express opinion or negative opinion audit report; （4） Failing to disclose the true, accurate and complete annual report of more than half of the directors within the statutory time limit; （5） Although it meets the conditions specified in article 14.3.7, it fails to apply to the exchange for withdrawal of delisting risk warning within the specified time limit; （6） The withdrawal of delisting risk warning application has not been examined and approved by the exchange because it does not meet the conditions specified in article 14.3.7. ". In case of any of the above situations in 2021, Shenzhen Stock Exchange will decide to terminate the listing of the company's shares.

4. If the court decides to approve the reorganization plan (Draft) of kairuide Holding Co., Ltd., the implementation of the subsequent reorganization may have an impact on the company's long-term equity investment, accounts receivable and other receivables. The company will actively do a good job in daily operation on the existing basis, and disclose the progress of the above matters in strict accordance with the relevant provisions of the stock listing rules.

5. Even if the company has successfully implemented the reorganization and completed the implementation, if the company's subsequent operation and financial indicators do not meet the requirements of relevant regulatory laws and regulations such as the stock listing rules, the company's shares still have the risk of being delisted.

6. In view of the uncertainty of whether the above restructuring plan can be approved by the Jingmen intermediate people's court, the company will continue to pay attention to the progress of the matter, and do a good job of information disclosure in strict accordance with the provisions and requirements of relevant laws and regulations. The company solemnly reminds investors that China Securities Journal, securities times and www.cninfo.com.cn are the information disclosure media of the company, and all information of the company is subject to the official announcement published by the company in the above-mentioned designated media. Please make rational investment and pay attention to investment risks. It is hereby announced

Board of directors of Kairui Holding Co., Ltd. December 8, 2021