Narada Power faces deepening liquidity crisis after debt defaults, bank account freezes

Zhejiang Narada Power Source Co., Ltd. (Narada) has officially disclosed overdue debt of CNY 551.8 million ($75.7 million), and the judicial freezing of 65 bank accounts held by the company and its subsidiaries.

The company, now trading as ST Narada on the Shenzhen Stock Exchange under ticker 300068.SZ, said in a May 6 filing that it had failed to repay CNY 551.8 million of matured debt as of the announcement date, equivalent to 39.05% of its audited net assets for 2025. The overdue amount included CNY 271.1 million owed to financial institutions through working-capital loans, project loans, supply chain financing and equipment financing, as well as CNY 280.8 million in commercial acceptance bills payable to suppliers. The figures exclude unpaid interest, default penalties and related charges.

In a separate filing on the same day, Narada said 65 bank accounts had been frozen following litigation disputes related to debt defaults. The total amount requested to be frozen was about CNY 856.8 million, or 60.63% of the company’s most recent audited net assets. The actual frozen balance was CNY 47.0 million, equivalent to 3.33% of net assets. The affected accounts include basic accounts, general accounts, factoring accounts and margin accounts.

The company said the account freezes had affected its capital operations and management activities. It added that the freezes triggered an additional “other risk warning” under the Shenzhen Stock Exchange’s ChiNext listing rules. The company’s stock abbreviation remains ST Narada, its stock code remains 300068, and the daily trading limit remains 20%. Trading was not suspended.

The latest filings follow an earlier risk warning imposed after ShineWing Certified Public Accountants issued an adverse opinion on Narada’s 2025 internal control audit. The company’s shares were first placed under other risk warning from April 30, with the abbreviation changed from “Narada Power” to “ST Narada.”

Narada reported 2025 revenue of CNY 7.47 billion, down 6.43% year on year, and a net loss attributable to shareholders of CNY 2.64 billion. Its asset-liability ratio reached 92.14% at the end of 2025, while current liabilities exceeded current assets by CNY 2.95 billion, according to the company’s board explanation of the auditor’s opinion.

The auditor issued a qualified opinion with a paragraph highlighting material uncertainty over the company’s ability to continue as a going concern. The audit issues included large prepayments to the company’s largest supplier, borrowings or guarantees involving non-financial institutions and individuals that had not gone through internal approval procedures, and uncertainty over the recoverability of certain receivables. The internal control audit identified major deficiencies in fund management, supplier management, related-party management, financing, seal management and information disclosure.

Narada said it is negotiating with creditors, seeking support from financial institutions, accelerating receivables collection, cutting costs and looking for financing channels to address the overdue debt and frozen accounts. It also said it would try to resolve related litigation and reduce the risk of further asset freezes or seizures.