Project Achievement: The Restructuring Plan Approved by the Court

On August 16, 2022, the Changsha Intermediate People's Court of Hunan Province ruled to approve the restructuring plan of Changfeng Group Co., Ltd., Hunan Liebao Automobile Co., Ltd., Hunan Changfeng Power Co., Ltd., Hunan Changfeng Liebao Automobile Co., Ltd., Hengyang Fengshun Axle Co., Ltd., and Beijing Great Wall Huaguan Automobile Technology Development Co., Ltd., and terminated the restructuring procedure.

Client Background: Hengyang Hongdian New Energy Technology Co., Ltd.

Hengyang Hongdian New Energy Technology Co., Ltd. (hereinafter referred to as "Hongdian New Energy") became the restructuring investor of this project through comprehensive bidding.

Founded in October 2019, Hongdian New Energy is actually controlled by Hengyang Hongxiang State-owned Investment (Holding) Group Co., Ltd., a wholly-owned subsidiary of Hengyang State-owned Assets Supervision and Administration Commission (SASAC). As a platform company of Hengyang Municipal Government focusing on industrial investment and development services, the company's main business covers four major sectors:

• Industrial Investment
• Infrastructure Construction
• Urban Public Welfare Undertakings
• Operation and Management of State-owned Assets

At present, Hengyang Hongxiang State-owned Investment (Holding) Group Co., Ltd. has a credit rating of AA+, and owns:

• 14 Wholly-owned Subsidiaries: Including Hengyang Hongxiang Automobile Technology Co., Ltd., Hengyang Hongzheng Asset Management Co., Ltd., Hengyang Shijie Technology Development Co., Ltd., etc.
• 104 Participating and Holding Companies: Including Hunan Lingpai Dazhi Technology Co., Ltd. (300530.SZ), Qidi Pharmaceutical Group Co., Ltd. (000590.SZ), Hunan Development Group Co., Ltd. (000722.SZ), Nanyue Electric Control (Hengyang) Industrial Technology Co., Ltd., etc.

Our Services: Full-process Legal Support

Lawyers Huang Xing, He Yuxin, Liu Zhizhen and others from Luheng Law Firm provided full-process legal services for Hongdian New Energy in the implementation of this bankruptcy restructuring investment, including:

• Investment Due Diligence: Conduct a comprehensive legal due diligence on the restructuring target assets
• Transaction Structure Demonstration: Participate in designing and demonstrating the transaction structure of this bankruptcy restructuring investment
• Drafting and Revision of Transaction Documents: Draft, revise and finalize all legal documents involved in this investment
• Negotiation and Consultation: Participate in negotiation and consultation with creditors, administrators and other parties
• Legal Risk Prevention and Control: Identify, evaluate and prevent legal risks during the entire investment process

Project Value: Achieve the Core Goals of the Investor

With the professional services and assistance of our firm, the investor successfully achieved the two core goals of this bankruptcy restructuring investment:

1. Acquire Restructuring Target Assets: Successfully completed the acquisition of restructuring assets of six enterprises under the Changfeng Group
2. Preserve Complete Vehicle Production Qualification: Successfully preserved the complete vehicle production qualification of the restructured enterprises, laying a foundation for subsequent industrial integration and business development