China Medical Group (08225): Announcing the progress of collection of accounts receivable

Zhitong Finance App News, China Medical Group (08225) issued an announcement regarding the latest developments in the company's accounts receivable collection work, as disclosed in the company's “2024 Annual Report”. As of December 31, 2024, the total amount of accounts receivable of the company was RMB 128 million, and the relevant impairment preparations have been fully calculated in accordance with accounting standards. These payments are mainly derived from the Group's daily business operations and are common in the industry.

Since the disclosure of the 2024 Annual Report, the company has continued to actively promote the recovery of funds and classify policies according to the different situations of debtors. The specific developments are as follows:

(i) Accounts receivable from related parties

All of the company's arbitration requests relating to related parties' accounts receivable have been rejected. The company has commissioned an attorney to submit an application for annulment of the arbitration award to the competent court, which is currently under review. The company is actively following up on the court's internal workflow.

(ii) Accounts receivable from unrelated parties

1. Customers who have a good cooperative relationship and are willing to repay

The company has reached consensus with relevant customers and achieved continuous repayment through optimized communication, active consultation and door-to-door visits. From June 3, 2026 (the date of the last collection progress announcement) to the date of this announcement, such customers added a total of RMB 2,088 million in repayments, and subsequent repayment plans are being steadily implemented.

2. Customers with long accounts or difficulties in operating

Based on the principle of prudence, the company has commissioned a third-party professional agency to carry out evaluation and disposal, and has simultaneously initiated corresponding legal procedures to protect rights and interests.

3. It is more difficult to recover money

The company has adopted all legal measures in accordance with the law, including applying for the relevant debtor to be included in the list of untrustworthy executees, and will closely monitor the status of its assets, and will act immediately once it discovers enforceable leads.

(3) Internal management optimization

In order to fundamentally improve the quality of working capital, the company has established a “Accounts Receivable Management Committee” led by the finance department and coordinated by multiple departments to focus on collection work; it has also strengthened internal control of the entire process from customer credit evaluation to account period management to prevent additional risks.

The company will continue to take all necessary measures in accordance with the law, including but not limited to: continuing to follow up the review process of the cancellation application and decide on the next legal action (including but not limited to filing a separate civil lawsuit) based on the final court ruling; continuing to negotiate with normal operating customers to ensure repayment according to the repayment plan; promoting asset tracking and legal recovery of customers who have fully charged bad debts, including but not limited to applying for court enforcement and filing legal lawsuits; regularly reporting progress to the board of directors and promptly fulfilling information disclosure obligations in accordance with the rules of the Stock Exchange.