Chongqing Machinery & Electric Co., Ltd. (CHONGQING M&E) disclosed that its wholly owned subsidiary, Chongqing Industrial Enabling Innovation Center Co., Ltd. (Enabling Center), submitted an application for self-bankruptcy liquidation to the Fifth Intermediate People’s Court of Chongqing on 28 August 2026. The filing cites the subsidiary’s inability to repay maturing debts and an asset base insufficient to cover outstanding liabilities.

The Court has not yet ruled on whether it will accept the application. If insolvency proceedings commence, a court-appointed administrator will assume control of Enabling Center, and the entity will cease to be consolidated in CHONGQING M&E’s financial statements.

Management stated that the parent company’s overall operations remain “normal in all material respects” and does not anticipate a material impact on current-period or future consolidated profit. The final effect will depend on the Court’s decision and subsequent audit results.

CHONGQING M&E’s board will continue monitoring developments, apply appropriate accounting treatments in line with prevailing standards, and disclose material updates as required by Hong Kong Listing Rules and the Securities and Futures Ordinance. Shareholders and potential investors are urged to exercise caution when dealing in the company’s securities.