MerryCloud: Intends to Cease Operation of Papermaking Business and Liquidate and Deregister Subsidiaries

Jinshi data news on November 15th, MeriCloud announced in the evening that the company plans to stop operating the papermaking business and liquidate and cancel its wholly-owned subsidiary Ningxia Xinghe New Material Technology Co., Ltd. The papermaking business of the company has outdated production capacity, old equipment, high safety risks, continuous losses in the papermaking business in recent years, with a trend of increasing losses. In addition, changes in the industry environment this year indicate no hope of turning losses around in the future. The closure of the papermaking business and the liquidation of Xinghe Technology are expected to have an impact on the company’s financial and production operations, and the financial statements of the consolidated scope of the company will correspondingly change. The full-year performance is expected to be in loss, but in the long run, it is in line with the company’s strategic layout and the interests of all shareholders, conducive to achieving the company’s continuous, healthy, and stable development. At the same time, stopping the papermaking business will not trigger delisting new regulations based on the revenue and profit situation of the company’s data center and new energy business. The company will fulfill its disclosure obligations in a timely manner.