Xin Jing Bao·2025-10-28 14:56Core Viewpoint - New City Services announced a board member adjustment following the exposure of nearly 7 billion yuan in illegal borrowing, aiming to enhance its overall independence and address potential conflicts of interest [2][4][5]. Group 1: Board Adjustment - The resignation of key executives associated with New City Holdings and New City Development, including Chairman Wang Xiaosong, is part of the board restructuring to improve independence [3][5]. - The current board now consists of five members, including executive directors and independent non-executive directors, following the resignations [2][5]. Group 2: Background of the Adjustment - The board adjustment is linked to a previous announcement regarding related party transactions, which led to the suspension of trading on April 1 [5][6]. - A detailed investigation report revealed that New City Services lent 1.8 billion yuan and 5.17 billion yuan to New City Holdings in 2023 and 2024, respectively, totaling 6.97 billion yuan [5][7]. Group 3: Future Steps for Resumption of Trading - New City Services must fulfill several requirements to resume trading, including publishing an independent investigation report and assessing the impact of the related party transactions on its operations and financial status [7][8]. - The company is under pressure to complete the necessary steps within 18 months to avoid delisting, with a deadline set for September 30, 2026 [8][9]. Group 4: Financial Outlook - Prior to the suspension, New City Services had a market value of 2.4 billion HKD, which has significantly decreased, and the company anticipates a net loss of 700 million to 900 million yuan for 2024 [8][9].