CFLD(SH:600340) Cai Jing Wang·2025-11-22 04:33Core Viewpoint - The initiation of a special financial due diligence for Huaxia Happiness is closely related to its recent application for pre-restructuring [1][3]. Group 1: Financial Due Diligence - The debt committee of Huaxia Happiness has approved a resolution to authorize Ping An Asset Management to hire a qualified accounting firm for a special financial due diligence [2]. - The due diligence work is scheduled to begin on November 24, 2025, with the debt committee's working group entering Huaxia Happiness for preliminary preparations [2]. Group 2: Pre-restructuring Application - On November 16, Huaxia Happiness announced that it was applied for pre-restructuring by creditor Longcheng Construction due to its inability to repay debts and lack of repayment capacity, although it has restructuring value [4]. - Longcheng Construction claims that Huaxia Happiness owes approximately 4.172 million yuan for municipal engineering construction work [4]. Group 3: Internal Disputes - Board member Wang Wei raised three points of contention regarding the pre-restructuring announcement, including lack of prior knowledge, failure to provide relevant documents, and the legality of the "no objection" statement [4]. - Wang Wei's concerns highlight internal conflicts within the company, particularly regarding the decision-making process related to the restructuring [5]. Group 4: Financial Condition - Huaxia Happiness has faced significant financial challenges, with total liabilities exceeding 400 billion yuan and cumulative debt defaults nearing 90 billion yuan since 2021 [5]. - As of September 30, 2025, the company's debt-to-asset ratio reached 96.44%, with a substantial net loss of 9.829 billion yuan and a significant decline in revenue by 72.09% year-on-year [6].