The company's factory is located in Jiangyin City, which belongs to the core area of the street where the Jiangyin Municipal Government is located. It is situated in the core planning area of the Jiangyin Municipal Government's Dajiang Dacheng, with a large state-owned real estate project separated by a wall to the north of the project. According to the understanding of Yinding Asset from the Land Planning Bureau, Land Storage Center, and Demolition Office, the project site has been included in the 2022 demolition work plan of Jiangyin City, and the subsequent planning of the site will be adjusted to residential land (about 1/4 of which will be used for public green space), and will be included in the experimental school district. The project company originally belonged to a relatively large local manufacturing enterprise with an annual production capacity of 200000 tons and an annual wastewater discharge quota of 144000 tons. If the project company is relocated and vacated, the discharge quota can be released for industrial upgrading and investment promotion in Jiangyin City.

Before restructuring: (1) Establish exclusive cooperation with the project company; (2) Communicate with the local government on participating in the restructuring and subsequent demolition matters, confirm the government's planning and demolition arrangements for the land, clarify the low compensation amount and local demolition compensation policies; (3) Reached exclusive cooperation with a state-owned asset and an AMC in Jiangsu, and resolved the local government and employees' distrust and doubts about foreign capital participating in major demolition projects through state-owned asset cooperation; (4) Design a restructuring plan, submit it to the Jiangyin Municipal Government, obtain government recognition and relevant instructions.

In the process of restructuring: (1) Apply for bankruptcy restructuring of the project company to ensure our company's controllability and operability of the entire bankruptcy process, evaluation, and costs, and to avoid disorderly competition; (2) Reached an agreement with employee creditors, mortgage creditors, and local streets on the restructuring plan, and communicated with Jiangyin Court to ensure the smooth implementation and approval of the restructuring plan; (3) Through exclusive cooperation, debt acquisition, and other means, ensure that the restructuring plan is voted on and approved by the court.

After restructuring: (1) Confirm the amount and method of compensation for demolition with the street and Jiangyin soil storage, and adjust or re evaluate the original compensation basis; (2) During the subsequent bidding and listing process of the plot, obtain priority for plot development, fix plot development costs, and ensure certainty.

The project is led by Yinding as one of the lower tier investors to introduce intermediate level investors and jointly promote the development of subsequent land parcels as investors in the bankruptcy reorganization of the project company. The initial investment of the project is used to pay the restructuring guarantee deposit and the first payment for the acquisition of debt; The other contribution will be used for other restructuring investments, and the remaining amount will be allocated. The repayment time for other creditors will be postponed as agreed in the bankruptcy restructuring plan. The estimated total investment time for the project is 9 to 12 months, including 2-3 months for bankruptcy reorganization, 4-6 months from initiation to completion of demolition work, and 3 months reserved for negotiating with the government to adjust compensation amounts and subsequent development matters. Under the premise of low demolition compensation and without considering subsequent development, the expected IRR of the project is 123.00%, the IRR of inferior funds is 205.80%, and the IRR of Yinding assets is 237.42%.

1. Cooperate with state-owned assets and the government, as well as negotiate repayment amounts with mortgagees and employees, to achieve smooth implementation of the restructuring plan. Yinding Asset has reached an exclusive cooperation agreement with state-owned assets and a certain AMC in Jiangsu, initiating the bankruptcy reorganization of the project company. Yinding has received approval from the Mayor of Jiangyin, the Municipal Government, and the Municipal Financial Office to carry out debt restructuring. Yinding facilitates multi-party negotiations and soothes employees' emotions; By formulating a feasible and reasonable restructuring plan, the available funds for creditors to repay can be increased, and the support of creditors can be maximized, so that the project restructuring plan can be passed with a high support rate.

2. Able to gain an advantage in land development and have high value. Jiangyin City's land will be launched through unified public bidding, auction, and listing, but the actual controller of the project company can obtain certain development opportunities and conditions. After investigation, Yinding learned that the surrounding buildings and other plots were successfully auctioned in the open market after the developers had contacted in advance, and the land development has operability and successful cases. Yinding Asset estimated the total value of the project by referring to the plot ratio of similar properties in the surrounding area. Based on a 10% project profit margin, the conclusion was drawn that the project's future development benefits are considerable.