On July 17th, the JSTE liquidation team released a report detailing the progress of the liquidation and measures taken to protect the rights of creditors of JSTE Electronic Technology (Dongguan) Co., Ltd. This includes creditor claims, asset verification, and efforts to identify potential buyers.
The full contents of the report are as follows:
All creditors of JSTE Company:
JSTE Electronic Technology (Dongguan) Co., Ltd., hereinafter referred to as "JSTE Company," announced on June 3, 2024 that it has initiated self-liquidation. As of July 17, the recent work of the liquidation team of JSTE Company and its next steps have been reported.
First, release the liquidation announcement to the public.
On June 3, 2024, JSTE Electronic Technology (Dongguan) Co., Ltd. (hereinafter referred to as "JSTE Company") issued a notice of voluntary liquidation. The notice states that starting from June 3, 2024, JSTE Company will cease all business activities and begin the process of liquidation.
2. Conducting debt claim filing and verification work.
On June 3, 2024, JSTE Company released a declaration of voluntary liquidation for JSTE Electronic Technology (Dongguan) Limited, informing all creditors to submit their claims starting from June 3, 2024. The deadline for submitting claims is 45 days, with the final deadline being July 18, 2024. As of July 16, the liquidation team has received a total of 111 claim submissions, with the total amount of claims reaching 42 million.
Three, on-site staff members are available to answer inquiries from creditors.
From June 3, 2024 to the date of this report, the liquidation team stationed special personnel on-site to receive 300 creditors, fully and patiently explaining the liquidation process to them. They also provided answers to creditors' concerns about the company's current situation, asset status, and other related issues. Additionally, they listened attentively to the creditors' own debt situations and addressed any doubts or questions they had regarding debt declaration.
Fourth, the establishment of the JSTE clearing group's public official account.
On June 3, 2024, in order to provide all creditors with information on the liquidation status of JSTE company and to offer them a communication platform, the JSTE liquidation team launched a WeChat public account named "JSTE Liquidation Team". After its launch, timely announcements and information are posted, and questions from creditors are responded to in the background.
At the same time, the JSTE liquidation team also launched a WeChat account, with a total of 80 creditors and related individuals added, ensuring effective communication with creditors.
Fifth, engrave the seal of the clearing group.
The production of the seal for the liquidation team has been completed and has been filed with the Dalang Sub-bureau of the Dongguan Municipal Market Supervision Administration. The account for the liquidation team has been successfully opened, specifically for the disposal of assets and payment of debts.
Sixth, establish a dedicated account for the liquidation team.
The JSTE clearing group established a dedicated fund account on June 17, 2024, to ensure transparency in fund transfers during the clearing period and to cover necessary expenses during that time.
Seven, Selecting and Hiring Audit and Evaluation Agencies
In order to comprehensively verify the assets and financial status of JSTE Company, on June 20, 2024, the JSTE liquidation team hired Dongguan Zhongtao Huayi Certified Public Accountants (General Partnership) as the auditing firm and Dongguan Dongxin De Real Estate Land Evaluation Co., Ltd. as the evaluation firm. They are conducting a full assessment of JSTE Company's assets and financial situation, and have already issued preliminary audit and evaluation reports.
Engage actively with potential buyers.
Due to the fact that JSTE Company is an e-cigarette processing and manufacturing enterprise, its assets are mainly concentrated in inventory. However, e-cigarette inventory (including finished products, semi-finished products, materials, etc.) itself has issues such as low realization value, difficulty in realization, and inability to be stored long-term. In order to avoid depreciation of JSTE's assets, the JSTE liquidation team began seeking potential buyers through channels such as 【2FIRSTS】, industry associations, etc. starting from June 3, 2024. Due to the possibility of serious devaluation and safety risks of battery materials in JSTE's inventory if stored for a long time, a public notice for the disposal of assets (battery materials) of JSTE Electronic Technology (Dongguan) Co., Ltd. was issued on June 22, 2024 to find potential buyers. To better protect the rights and interests of all creditors, a public notice for the recruitment of potential investors for restructuring was issued on June 26, 2024 for JSTE Electronic Technology (Dongguan) Co., Ltd.
9. Cooperate with the on-site inspection conducted by the Tobacco Monopoly Bureau.
On June 6, 2024, the Tobacco Monopoly Bureau conducted an on-site inventory check at JSTE Company. During the process, the liquidation team of JSTE actively cooperated, and the Tobacco Monopoly Bureau verified and registered the inventory of JSTE Company.
10. Organize staff to take inventory of goods and related assets.
In order to protect the interests of all creditors, starting from June 3, 2024, the JSTE liquidation team has hired necessary staff to conduct a comprehensive inventory of the existing inventory of JSTE company, and to store the inventory in batches and zones.
Next steps in the work plan:
Currently in the stage of investor quoting, the liquidation team will comprehensively analyze and select the prospective investor that is most beneficial to the creditors.
Once the prospective investors have been identified, the liquidation team plans to hold a meeting for all creditors on July 25, 2024 through the Poyi Cloud platform. During this meeting, the liquidation team will report on their progress and all creditors will have the opportunity to vote on the JSTE Company's asset liquidation plan.
JSTE Electronics Technology (Dongguan) Co., Ltd. Liquidation Team
July 17, 2024
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