Hidili Industry International Development Limited disclosed its second-quarter update on initiatives aimed at lifting the auditors’ Disclaimer of Opinion attached to its 2024 and 2025 financial statements. The disclaimer, issued by Zhonghui Anda, stems solely from going-concern uncertainties. Key developments are as follows:
Debt restructuring • Loans originally held by Minsheng Bank and Ping An Bank have been sold to a mainland financial institution. Hidili Industry has submitted a revised proposal that seeks a partial principal waiver, full interest forgiveness and a loan-term extension of up to five years. Updated financial and operational data have been provided, and the proposal remains under internal review by the institution. • Parallel negotiations with other PRC lending banks continue; no binding terms have been reached. The company pledges further announcements upon material progress.
Equity-linked liabilities • The company is working with professional advisers on a constructive arrangement to repurchase the outstanding SPP Shares. Details will be released once a feasible plan is finalised.
Operating performance • Raw coal production for the three months ended 30 June 2026 totalled 1.21 million tonnes, down 15.07% from 1.42 million tonnes a year earlier, as mining was confined to four of eight operational mines in Guizhou. Management reallocated labour and materials to optimise utilisation, generating additional cost savings. • A detailed breakdown of production and unit costs for the first half of 2026 will be provided in the interim results announcement due on or before 31 August 2026.
Cost management and liquidity measures • General administrative expenses remain under strict control, and further cost-cutting options are under assessment. • Plans are under way to dispose of certain non-performing assets to enhance cash inflows.
Hidili Industry states it will continue executing the action plan and will update shareholders and investors on significant milestones in resolving the audit disclaimer and strengthening its financial position.