PT International Development Corporation Limited Issues Key Updates on Financial Position and Legal Proceedings

Overview

PT International Development Corporation Limited (“PT International” or “the Company”, stock code: 372) has released a comprehensive update regarding measures taken to address the disclaimer of opinion pertaining to its annual report for the year ended 31 March 2025. This update is crucial for investors and shareholders, as it encompasses actions to mitigate liquidity pressures, improve financial standing, and resolve significant legal and financial uncertainties.

Key Points and Actions Undertaken

• Ongoing Negotiations and Potential Subscription: The Company has been actively negotiating with Guangxi Linghang International Logistics Company Limited, a subsidiary of a state-owned enterprise, regarding a potential subscription that could bring in strategic investment and enhance liquidity.
• Bank Loan Covenants and Guilin Bank Discussions: PT International continues discussions with Guilin Bank over existing loans, which are currently in breach of covenants. While Guilin Bank has not formally waived the right to demand immediate repayment, ongoing negotiations indicate the bank does not intend to take such action at this time. This remains a critical risk as any change could materially impact liquidity and share value.
• Litigation and Settlement Agreements:
  • Disputes with Lianwei:
    • The appeal court has upheld a judgment against PT International concerning three civil complaints. The Company is applying for a retrial and a stay of enforcement. If unsuccessful, this could result in significant financial penalties.
    • In another case, the court ordered PT International to pay RMB52,800,000 in remaining rent for oil storage tanks, RMB100 as retention purchase price, and legal costs within 10 days of the judgment’s effective date. PT International intends to appeal, and enforcement is stayed pending conclusion of the appeal.
    • PT International is also seeking to stay enforcement and retrial of a settlement agreement dated 22 February 2024 with Lianwei.
  • Civil Complaint Regarding Alleged Loan:
    • A retrial before the Qinzhou Court is scheduled on or before 17 March 2026 regarding an alleged loan to an individual. The outcome could affect the Company’s financial stability.
• Efforts to Secure Additional Financing: PT International is actively seeking additional loan facilities from banks and asset management financial institutions to shore up liquidity, especially during the three months ended 20 February 2026.
• Fund Asset Disposal and Potential Distribution: The Company is in discussions regarding the disposal of underlying assets in a fund. The fund is expected to dispose of assets when market prices reach a suitable level, with maturity set for the year ending 31 March 2026 unless extended. Distribution to PT International is expected within the same period, potentially enhancing liquidity.

Management and Board Composition

The board comprises two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure. This is important for oversight during complex financial and legal proceedings.

Implications for Shareholders

• Liquidity and Going Concern: The Company’s liquidity position remains under pressure. Success or failure in loan negotiations, legal proceedings, and asset disposals could directly impact the Company’s ability to operate as a going concern, which is highly price sensitive.
• Litigation Risks: Financial obligations arising from ongoing litigation, if enforced, could have a material adverse effect on the Company’s financial position and share value.
• Potential Strategic Investment: The ongoing negotiations for potential subscription by a state-related entity could significantly improve liquidity and investor confidence if successful.
• Asset Disposals: Anticipated distributions from the fund upon asset disposal may contribute positively to liquidity and financial health in the near term.

Conclusion

The developments outlined above are highly relevant to shareholders and may influence share price depending on the outcomes of ongoing negotiations, legal proceedings, and asset disposals. Investors should closely monitor further announcements and updates from PT International Development Corporation Limited.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult financial advisers before making any investment decisions. The information herein is based on company announcements as of 23 February 2026 and may be subject to change.