Transaction Overview - Hainan Natural Rubber Industry Group Co., Ltd. plans to participate in a public auction for equity in four companies and a vehicle owned by Hainan Huaxiang Industrial Group Co., Ltd. The assessed value of the auctioned assets is 585,877,874.61 yuan, with a starting price of 410,114,512.23 yuan [1][2] - The auction will take place from June 26, 2025, to June 27, 2025, on the Alibaba auction platform [1][2] Approval Process - The board of directors approved the participation in the auction during the 46th meeting of the sixth board on June 26, 2025. The management is authorized to implement the auction procedures [2][3] Background of the Transaction - Hainan Huaxiang was established with Hainan Huayang holding 65% and Hainan Natural Rubber holding 35% of the equity. Hainan Natural Rubber's contribution was initially 28 million yuan in physical assets, which has since increased to 62,111.27 million yuan through equity contributions [3][4] - A lawsuit was filed against Hainan Huayang for failing to fulfill its capital contribution obligations, leading to a court-ordered liquidation of Hainan Huaxiang [3][4] Financial Data - As of March 31, 2024, Hainan Huaxiang's total assets were 669,893,469.81 yuan, with total equity of 646,073,801.56 yuan [5] Auctioned Assets - The auction includes equity in four deep processing companies and a vehicle. The total assets and equity of the companies are as follows: - Hainan Jingwei Latex Wire Co., Ltd.: Total assets of 326,999,055.88 yuan, equity of 298,245,795.33 yuan - Hainan Anshunda Rubber Products Co., Ltd.: Total assets of 47,051,801.37 yuan, equity of 41,814,379.18 yuan - Hainan Old Town Haijiao Deep Processing Industrial Park Investment Management Co., Ltd.: Total assets of 30,230,918.94 yuan - Hainan Zhizhi Latex Products Co., Ltd.: Total assets of 928,332.93 yuan, with negative equity of -1,054,519.53 yuan - An Audi vehicle with an assessed value of 106,553.00 yuan [6] Impact on the Company - Participation in the auction aligns with the strategic goals of Hainan Natural Rubber, supporting the development of a modern rubber industry park and addressing historical issues with Hainan Huayang. Successful bidding will facilitate the resolution of capital contribution disputes and benefit all shareholders [7]