Renowned printing company Hucai Printing Art begins bankruptcy reorganization
On June 12, 2025, the Dongguan Intermediate People's Court lawfully accepted the bankruptcy reorganization application of Hucai Printing Art Co., Ltd. (hereinafter referred to as "Hucai Printing Art"). This means that Tiger Color Printing, a well-known enterprise in the industry with a 37 year history established in 1988, has officially entered the bankruptcy reorganization process, just 10 months after its delisting from the New Third Board.
After investigation, it was found that Dongguan Huaguang Packaging Materials Co., Ltd. filed for bankruptcy reorganization against Hucai Printing Art. Huaguang Packaging was established in 1997, mainly producing aluminum plated film, aluminum foil paper and other products. Like Hucai, it is located in Humen Town, Dongguan City and is a long-term business partner of Hucai. In 2023, the transaction amount between Hucai Printing and Huaguang Packaging was 44.2676 million yuan.
Life and Death Breakthrough Battle
Compared to bankruptcy liquidation, bankruptcy reorganization mainly targets debtors who may or have already experienced bankruptcy reasons but have hope of being regenerated. The main approach and purpose is to assist debtors in overcoming financial difficulties and regaining operational capabilities by restructuring their production and business operations, as well as cleaning up their creditor debtor relationships. In other words, bankruptcy reorganization is aimed at enterprises that encounter difficulties but have hope to be rescued and continue to operate.
According to well-known lawyers in the industry, the successful restructuring of Hucai Printing Art requires solving three problems simultaneously. Firstly, it needs to reduce debt by 800-1000 million yuan through debt to equity swaps and introduce strategic investors with industrial synergy capabilities; Secondly, it is necessary to decisively divest from "bleeding businesses" such as on-demand publishing and refocus on high value-added areas such as high-end anti-counterfeiting packaging; The most important thing is to achieve risk isolation with Mount Taishan Beer and remove capital constraints such as cross guarantees.