Country Garden progresses on restructuring, aims to resolve auditor disclaimer

Country Garden Holdings Company Limited has provided an update on its actions to resolve a disclaimer of opinion from its auditor for the financial year ended December 31, 2024. The company is actively pursuing a proposed restructuring, aiming to convert major offshore debts into equity, extend debt tenors, or reduce principal amounts through options like mandatory convertible bonds. Holders representing over 77% of Class 2 Indebtedness and over 62% of Class 1 Indebtedness have acceded to the Restructuring Support Agreement (RSA). The company anticipates completing the proposed restructuring by the end of 2025.

In addition to offshore restructuring, Country Garden successfully negotiated with bondholders in April 2025 to further defer principal and interest payments on certain domestic corporate bonds from March-June 2025 to September-December 2025. The group is also generating cash inflows, achieving contracted sales attributable to shareholders of approximately 22.48 bn yuan from January to August 2025, with a gross floor area of approximately 2.72 million square meters.

The company disposed of equity interests in LandSpace Technology Co., Ltd. for a total consideration of 1,305,056,976.08 yuan. Country Garden believes these measures provide sufficient financial resources to continue as a going concern for at least 12 months from December 31, 2024. The company will issue quarterly updates until the disclaimer of opinion is resolved.