Controversy Over Bond Default by Major Shareholder of Chao Chi House Management: MOEA Issues 5-Point Statement

In response to recent reports on 'MOEA investing in Chao Chi House Management,' the MOEA's Industrial Development Bureau issued a 5-point statement today (19th) to clarify the situation. The controversial corporate bonds were issued by major shareholder Zhao Ji Investment and Jia Qigu Management, led by former chairman Li Jiancheng, and were not issued by Chao Chi House Management itself. The MOEA will demand that Chao Chi House Management sue Li Jiancheng for damages due to his personal actions causing harm to shareholders' rights. The MOEA has also coordinated with related venture capital firms and shareholders to urge the restructuring of the management team and the selection of a suitable chairman to maintain normal operations.

Chao Chi House Management, a leading company in domestic property management, has faced controversy over the default of high-yield corporate bonds issued by its related companies 'Zhao Ji Investment' and 'Jia Qigu Management.' Former chairman Li Jiancheng is suspected of illegal fund-raising and misappropriation of funds and has been summoned by prosecutors, with the incident continuing to expand. As the National Development Fund has invested in Chao Chi House Management through policy measures, concerns have been raised about the safety of public funds.

The full text of the MOEA's Industrial Development Bureau's 5-point supplementary statement is as follows:

1. According to Chao Chi House Management's company registration data, Zhao Ji Investment holds approximately 34.93% of the shares, Acer (2353-TW) holds approximately 17.9%, and former chairman Li Jiancheng holds approximately 1.01%. Zhao Ji Investment is the largest shareholder of Chao Chi House Management.

2. The controversial corporate bonds were issued by Zhao Ji Investment and Jia Qigu Management, led by former chairman Li Jiancheng. Due to investment losses, they were unable to make normal payments, causing the controversy. Chao Chi House Management did not issue corporate bonds.

3. The MOEA's Industrial Development Bureau's 'Enhancement of Investment in Strategic Service Industries Implementation Plan' accepted Able Asia Capital's application for 1:1 matching investment in March 2026, which was approved in May. The shareholding ratio of the trust account under the 'Enhancement of Investment in Strategic Service Industries Implementation Plan' is approximately 2.12%, and Able Asia has been entrusted to exercise shareholder rights.

Before the investment, Able Asia conducted due diligence, comprehensively evaluating the source of funds, business plans, and financial structure. After the MOEA invited experts to jointly review, the investment was made. After the investment, Able Asia dispatched a director representative to participate in corporate governance and must conduct quarterly visits and provide financial reports of Chao Chi House Management to grasp the company's operating conditions and financial status.

4. The MOEA will demand that Chao Chi House Management sue Li Jiancheng for damages: To support the government's social housing leasing and management policy, the MOEA's Industrial Development Bureau and venture capital firms have jointly invested in Chao Chi House Management, using the National Development Fund to assist its operational development. Regarding Li Jiancheng's personal actions, which have harmed the rights of Chao Chi House Management's shareholders, the MOEA will demand that Chao Chi House Management sue Li Jiancheng for damages.

5. Jointly urge Chao Chi House Management to restructure its management team: The MOEA's Industrial Development Bureau has coordinated with the venture capital firm and other shareholders to jointly urge Chao Chi House Management to restructure its management team, select a suitable chairman, and maintain normal operations. The MOEA will also investigate whether there were any false or misleading statements in the fundraising process and whether investment funds were misappropriated, ensuring that the commitments and guarantees in the investment contract are properly fulfilled.