Zhitong Finance App News, Zhengrong Real Estate (06158) issued an announcement. The appeal adjourned hearing was originally scheduled to be held in the Hong Kong High Court on October 20, 2026. In an adjourned hearing, the Hong Kong High Court ordered the winding-up of Zhenro Hong Kong and the Director of Bankruptcy Administration was appointed as the provisional liquidator of Zhenro Hong Kong on November 9, 2026.
The directors believe that the Group lost control of Zhenro Hong Kong and its subsidiaries (Zhenro Hong Kong Group) on November 9, 2026 (date of termination of the merger), and that the financial results and financial position of Zhenro Hong Kong Group will no longer be comprehensively recorded from the date of termination of the merger.
As announced by the Company on July 8 and July 21, 2026, Zhenro Hong Kong is an investment holding company incorporated in Hong Kong. Zhenro Hong Kong Group is mainly engaged in real estate development in China. Zhenro Hong Kong directly or indirectly owns 381 subsidiaries. Most of the subsidiaries are engaged in real estate development in China, while others are engaged in commercial property management and investment management.
According to Zhenro Hong Kong Group's unaudited financial data for the year ended 31 December 2025, Zhenro Hong Kong Group's total assets, losses and total revenue were approximately RMB 84.905 billion, RMB 16.349 billion and RMB 9.792 billion, respectively, accounting for approximately 98.60%, 87.77% and 100.00% of the Group's total assets, total loss and total revenue for the same period.
The winding-up order (liquidation order) against Zhenro Hong Kong and the loss of control over Zhenro Hong Kong had a negative impact on the Group's operations because the Group is no longer able to comprehensively record the financial results and financial position of Zhenro Hong Kong Group. According to the Group's financial data as of December 31, 2025, the directors estimate that after Zhenro Hong Kong Group no longer has consolidated accounts, the total assets, total loss and total revenue of the Group will be approximately RMB 1,2004.5 billion, RMB 2,277 billion and zero, respectively, accounting for approximately 1.40%, 12.23% and zero of the Group's total assets, total losses and total revenue, respectively.
As Zhenro Hong Kong is in the liquidation phase, Zhenro Hong Kong's directors and management will cooperate with the provisional liquidator to the extent permitted by law and regulations and provide it with the information and documents they can obtain and necessary to carry out the winding-up procedure.