LFBC(SZ:002513) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-09-03 23:03Core Viewpoint - Jiangsu Lanfeng Bio-chemical Co., Ltd. has signed a settlement and debt waiver agreement with its controlling shareholder, Jiangsu Suhua Group Co., Ltd., to resolve investor litigation and debt issues, which is expected to alleviate the company's debt pressure and optimize its capital structure [1][7]. Summary by Sections Overview of the Settlement and Debt Waiver - The company faced investor lawsuits due to information disclosure violations, resulting in a compensation requirement of RMB 22,766,475.6, including overdue interest and litigation costs [2]. - As of July 31, 2025, the company owed Jiangsu Suhua Group a total of RMB 83,600,036.66, comprising RMB 59,200,719.70 in principal and RMB 24,399,316.96 in interest [2]. - The company has reached a settlement with Jiangsu Suhua Group regarding the investor lawsuits and debt waiver [2]. Key Terms of the Agreement - Jiangsu Suhua Group will bear a total compensation responsibility of RMB 17,157,200.73 for the investor lawsuits, which will be deducted from the company's outstanding loans to the group [5]. - The agreement includes a waiver of RMB 6,000,000 in interest debt by Jiangsu Suhua Group, which is unconditional and irrevocable [5]. - Following the agreement, the company will not pursue any further claims related to the investor lawsuits against Jiangsu Suhua Group or its management [6]. Impact of the Agreement on the Company - The total amount involved in the settlement and debt waiver is RMB 23,157,200, which will help reduce the company's debt burden and improve its asset-liability structure [7]. - The company will adjust its liabilities according to relevant accounting standards based on the audit results [7].