On March 4, Country Garden posted on WeChatAs of March 3, 2024, Country Garden Group has included 217 projects in the "white list" of real estate projects, and some projects have been approved by banks for loans.
On the same day, Country Garden announced on the Hong Kong Stock Exchange that the company would consider applying to the Hong Kong court for a recognition order in light of the winding-up petition filed by Ever Credit Limited in light of the progress of the offshore debt restructuring. Wind data shows that as of March 4**, Country Garden's share price was 0HK$59 shares, down 635%。
*：windThere has been a significant increase in the number of projects included in the "white list".According to Country Garden's official WeChat*** As the coverage of the "white list" of real estate financing continues to expand, as of March 3, 2024, Country Garden Group has included 217 projects in the "white list", a significant increase in the number of projects, and some projects have been approved by banks for loans. After entering the "white list", the company's related projects are expected to receive more support, which will help promote the guaranteed delivery, revitalize assets, and enhance the sustainable operation ability of the project. On March 4, Country Garden held a monthly group management meeting, and Yang Huiyan, chairman of the board of directors of Country Garden Group, emphasized that policy support is an important support for the company to respond to market challenges. The company should actively strive for the support of ** and financial institutions to form a closed loop of funds, so as to ensure delivery and operation. Country Garden's official WeChat *** article shows that the problem faced by the company is liquidity problems in the short term, and balance sheet repair problems in the medium and long term. The company's top priority at the moment is to ensure cash flow. Country Garden is actively taking measures to reduce revenue and reduce expenditure, strive to reduce cash flow expenditure by reducing non-operating expenses, and actively increase cash inflow through sales to ensure that there is sufficient funds to support delivery and daily operations. Mo Bin, President of Country Garden Group, said that the first thing to ensure delivery is to resume work in an orderly manner, which is the most important task for the region to complete the delivery guarantee. It is reported that at present, Country Garden's projects in Guangdong, Shandong, Hubei, Shaanxi, Guangxi and other places are resuming work one after another. Announcement of progress on winding-up petitionOn March 4, Country Garden announced that the company had recently received a winding-up petition filed by Ever Credit Limited against the company, and the company would consider whether to apply to the High Court for a recognition order at a later stage in light of the progress of its overseas restructuring. The Company will notify its shareholders and investors of the decision and make further announcements in due course. Shareholders and potential investors of the company are reminded that there is no assurance that an application for an order of recognition will be made or that an order will be granted by the High Court (if an application has been made) in such circumstances. If an authorisation order is not applied for or granted and the company is eventually wound up on the petition, the transfer of the company's shares made after the commencement date (i.e. 27 February 2024) will be invalid. On February 28, Country Garden announced on the Hong Kong Stock Exchange that the company was informed of the winding-up petition filed by Ever Credit Limited (the petitioner) with the High Court of the Hong Kong Special Administrative Region on February 27, 2024, concerning the unpaid term loan and accrued interest between the petitioner (lender) and the company (borrower) in the principal amount of about HK$1.6 billion. The Company will vigorously oppose the Petition. It is understood that behind the Country Garden winding-up petition is Kingboard Group, which is engaged in the manufacture and sale of copper-clad laminates. In October 2023, Kingboard Group announced that Country Garden failed to repay Kingboard Group 15HK$9.8 billion and issued a statutory demand to Country Garden. Previously, Country Garden offset part of the amount with a "debt-to-equity swap", but the outstanding 15HK$9.8 billion remains to be repaid in cash. According to Country Garden's announcement, the filing of the petition does not mean that the petitioner will be able to successfully wind up the company。The High Court has fixed the first hearing date of the petition as 17 May 2024. The Company will continue to maintain proactive communication with its overseas creditors and form a restructuring plan with them as soon as practicable, with a view to announcing the terms of the plan to the market as soon as practicable. A reporter from a reporter from China ** learned from a person close to Country Garden that the amount of debt involved in Country Garden Kingboard Group accounts for a very low proportion of the overall interest-bearing liabilities overseas, and the radical actions of a single creditor will not have a significant impact on the company's delivery of buildings, normal operation and overall restructuring of overseas debts. Reviewer: Xiong Yonghong Editor: Zhang Lijing.
Proofreading: Yu Hongbo.
Producer: Zhang Nan.
Issued by: Ding Jianming.