32. EVENTS OCCURRING AFTER REPORTING DATE (a) As announced on 17 March 2025, the manager entered into new property management agreements for the appointment of Hangzhou Wangcheng Property Service Co., Ltd. (“Wangcheng”) as the new property manager of Fuzhou E-Commerce, Fuheng Warehouse, Hengde Logistics, Wuhan Meiluote and Beigang Logistics Stage 1. In addition, in respect of Chongxian Port Investment and Chongxian Port Logistics (“Port Assets”), the manager has entered into a new port management agreement with Hangzhou Chonghang Port Supply Chain Co., Ltd. (“Chonghang”), replacing Hangzhou Fu Gang Supply Chain Co., Ltd. (“Fugang”) as the port operator of the Port Assets, and new property management agreements with Hangzhou Chonghang Port Property Management Co., Ltd. (a wholly owned subsidiary of Chonghang) for the provision of property management services for the Port Assets. Wangcheng and Chonghang are third-party service providers which are unrelated to the ECW Group. Please refer to announcement. (b) As announced on 27 March 2025, the manager received a notice from the Sponsor that the Sponsor had filed an application for reorganisation with the People’s Court of Fuyang District, Hangzhou City, Zhejiang province (the “Fuyang Court”) on the ground that the Sponsor is unable to pay its debts but still has reorganisation value. On 25 March 2025, the Sponsor received the decision of the Fuyang Court to conduct pre-reorganisation of the Sponsor. Pre-reorganisation is a procedure before the court officially accepts the reorganisation, and does not mean that the Sponsor has officially entered the reorganisation procedure. There is uncertainty as to whether the above-mentioned prereorganisation will be successful and whether the reorganisation procedure will be entered in the future. If the reorganisation is implemented in the future, there is no certainty or assurance that the reorganisation will not involve a change in control in respect of EC World REIT, depending on the reorganisation situation of the Sponsor. (c) As announced on 14 April 2025, the PRC Court has issued judgements on 8 April 2025 and 10 April 2025 dismissing the ECW group’s applications for orders on the invalidity and revocation of the outstanding relevant mortgage (the “April 2025 Judgments”). The PRC Court held that the outstanding relevant mortgage is lawful and valid. The Manager has sought the advice of its PRC legal counsel, whose view is that the April 2025 Judgments do not address or provide any explanation regarding certain issues highlighted by the ECW group during the court proceedings, such as the Fuyang Financial Institutions’ failure to fulfil their reasonable duty of care in the conclusion of the mortgage contracts and the fact that the mortgage contracts were entered into through unauthorised agency. Accordingly, the Manager intends to appeal against the April 2025 Judgements on the advice and recommendation of its PRC legal counsel. (d) As announced on 14 April 2025, the Manager received a notice from the Sponsor that the High Court of the Republic of Singapore has ordered that Mr Zhang Guobiao (“Mr Zhang”) be adjudged bankrupt. In view of this, Mr Zhang has resigned, and the Board of Directors of the Manager has accepted his resignation, as non-independent and non-executive of the Manager with effect from 14 April 2025. As Mr Zhang holds 80% of the equity interest in the Sponsor, Mr Zhang, through the Sponsor group, has a deemed interest in 43.793% of the units in ECW. The Manager understands that there is a possibility that the Bankruptcy of Mr Zhang may result in a change in control of the Sponsor, which may in turn indirectly result in a change in control in ECW, subject to applicable laws and regulations. 33. AUTHORISATION OF FINANCIAL STATEMENTS The financial statements were authorised for issue by the Manager and the Trustee on 15 April 2025. ANNUAL REPORT 2024 125 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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