Overseas Subsidiary Suddenly Receives "Bankruptcy" Notice! 002637: Debts Already Cleared and Offset, Case Filed and Accepted

Offshore subsidiary suddenly receives a “bankruptcy” notice, Zanyu Technology: debts have long been cleared and offset, report filed and accepted.

On the evening of March 16, Zanyu Technology (002637) announced that its wholly-owned subsidiary PT Dua Kuda Indonesia (hereinafter: “Duku Da”) received a “Bankruptcy Ruling Notice” from the Central District Commercial Court of Jakarta, Indonesia (hereinafter: “Jakarta Central District Commercial Court”) on March 13. The notice declared Duku Da bankrupt and imposed corresponding legal consequences.

In response, Zanyu Technology stated that on March 13, Duku Da filed a criminal complaint with the Indonesian National Police Criminal Investigation Bureau against the bankruptcy petitioners (Shuangma Chemical, Habo Company, and Nantong Xinjian Chemical) for suspected forgery of documents and/or perjury, which has been accepted.

Case background

PKPU procedure, i.e., debt postponement and repayment application, is a preventive debt restructuring process stipulated by Indonesia’s Bankruptcy and PKPU Law. It applies to enterprises with two or more creditors that are unable or expected to be unable to pay due debts. The goal is to suspend debt repayment, buy time to develop debt settlement/restructuring plans, and avoid direct bankruptcy. This procedure features a simplified review focusing only on the formality of the debts.

Hong Kong Harbor Praise Limited (hereinafter: “Habo Company”) applied for Indonesia’s debt postponement and repayment procedure (the “PKPU procedure”) against Duku Da, which was filed on November 13, 2025, at the Jakarta Central District Commercial Court.

On December 24, 2025, Duku Da received the PKPU ruling notice from the Jakarta Central District Commercial Court, which approved Habo Company’s application for the PKPU procedure. On March 13, 2026, Duku Da received a “Bankruptcy Ruling Notice” from the same court, declaring Duku Da bankrupt and imposing legal consequences.

According to the PKPU initiated by Habo Company on November 13, 2025, Duku Da owed three debts:

1. The first: Duku Da has overdue principal and interest owed to Habo Company since December 10, 2018, totaling approximately RMB 304 million (including about RMB 146 million principal, with 12% annual interest);

2. The second: Duku Da has overdue principal and interest owed to Suema Chemical Co., Ltd. in Rugao since December 30, 2018, totaling about RMB 194 million (including about RMB 106 million principal, with 12% annual interest);

3. The third: Duku Da has overdue principal and interest owed to Nantong Xinjian Chemical Co., Ltd. (formerly Shanghai Xinjian Chemical Co., Ltd., hereinafter: “Nantong Xinjian”) since December 30, 2018, totaling about RMB 800,000 (including about RMB 440,000 principal, with 12% annual interest).

Company verification: debts have been cleared and offset

Zanyu Technology verified that Habo Company, Suema Chemical, and Nantong Xinjian are all related companies controlled by the same individual. Suema Chemical was originally a major shareholder of Duku Da. In 2016, Zanyu Technology acquired 60% of Duku Da’s shares from Suema Chemical, and in 2019, acquired an additional 30%. However, none of these three companies are the true creditors of Duku Da.

Meanwhile, Zanyu Technology cited three main pieces of evidence to show that the alleged debts claimed by the bankruptcy initiators have already been cleared:

1. According to the “Balance Confirmation Letter” issued by Suema Chemical on March 4, 2021, confirming the balance between Habo Company and Duku Da as of January 31, 2021, the debts were fully offset through mutual offset between Habo Company and its related company Suema Chemical, and thereafter, Duku Da had no further transactions with Habo Company.

2. The “Balance Confirmation Letter” also states that Suema Chemical still owes Duku Da RMB 18.0282 million. In January 2022, Suema Chemical entrusted its related company in Indonesia, PT. SINO ZONE INDUSTRY INDONESIA, to transfer payments to Duku Da. Since then, the accounts between Suema Chemical and Duku Da have been settled, and there have been no further transactions.

3. The claim by Nantong Xinjian for about RMB 440,000 principal owed by Duku Da was actually transferred to Suema Chemical via a debt transfer agreement on July 31, 2020. Subsequently, Duku Da and Nantong Xinjian had no further dealings.

The initiators are suspected of criminal offenses, report filed and accepted

Zanyu Technology stated that when Habo Company and Suema Chemical applied to the Jakarta Central District Commercial Court to initiate the PKPU against Duku Da, they only submitted unverified documents from 2018 and 2019—namely, the “Debt Confirmation Letter,” “Power of Attorney for Collection,” and debt transfer agreement—without disclosing the fact that Duku Da’s accounts with Suema Chemical and related parties after December 30, 2018, had been offset. This omission led the Jakarta court to initiate the PKPU and issue the bankruptcy ruling.

Meanwhile, Duku Da, a wholly owned subsidiary of Zanyu Technology, has responded to this incident. The latest developments include:

1. Duku Da has authorized lawyers to file an appeal with the Supreme Court of Indonesia on March 16, 2026, requesting to revoke the bankruptcy ruling and all related legal consequences.

2. Duku Da filed a criminal complaint on March 13, 2026, with the Indonesian National Police Criminal Investigation Bureau against Suema Chemical, Habo Company, and Nantong Xinjian for suspected forgery and/or perjury, which has been accepted.

3. Duku Da also authorized lawyers on February 27, 2026, to deliver a “Dispute and Complaint Letter Regarding the Ruling on Suspension of Debt Repayment in Bankruptcy” to the Indonesian Ministry of Justice, the Supreme Court, the Supreme Court Supervisory Board, and the Judicial Commission, requesting the revocation of the PKPU ruling issued by the Jakarta Central District Commercial Court and asking the court to dismiss all PKPU applications filed by Habo Company and to halt the PKPU proceedings against Duku Da.

Proofread: Liao Shengchao