CFLD(SH:600340) Xin Lang Cai Jing·2025-11-22 03:46Core Viewpoint - The financial situation of Huaxia Happiness is under scrutiny as the debt committee initiates a special financial due diligence, raising concerns among creditors regarding the transparency of debt restructuring and the management of funds [1][2][4]. Group 1: Financial Situation - Huaxia Happiness has accumulated debt defaults nearing 90 billion, with total liabilities exceeding 400 billion, leading to a financial crisis [2]. - The company's cash reserves have plummeted from 14.4 billion to nearly 3 billion, a decline of nearly 80% [2]. - As of the end of 2024, Huaxia Happiness has 49.4 billion in accounts receivable, primarily owed by government platforms, with only a 7 billion decrease since 2021 [3]. Group 2: Debt Restructuring Efforts - A debt restructuring plan was established in September 2021, aiming to reduce the asset-liability ratio to below 70% within 2-3 years through various methods [2]. - The actual cash repayment to creditors has been less than 5% of the promised 30% by the end of 2023, leading to skepticism about the effectiveness of the restructuring plan [2]. Group 3: Legal and Compliance Issues - The announcement of a pre-restructuring process has faced criticism for lacking transparency and proper procedures, with internal directors and creditors questioning the legitimacy of the process [4][5]. - Legal experts have raised concerns about the adequacy of the court's review process for the pre-restructuring application, suggesting a need for comprehensive evaluation and assessment [5].