Country Garden subsidiary warned for disclosure failures, chairman maintains confidence

Country Garden Holdings Company Limited announced that its subsidiary, Giant Leap Construction Technology Group Co., Ltd., received a "Decision of Administrative Regulatory Measures" and warning letters from the Guangdong Securities Regulatory Bureau. The action stemmed from Giant Leap Construction's failure to timely disclose changes in its company name, changes in more than one-third of its directors, over two-thirds of its supervisors, and its general manager.

Additionally, the subsidiary was cited for being listed as a dishonest party subject to enforcement and significant litigation and arbitration matters. The warning letters were issued to Giant Leap Construction, its then chairman Ms. YANG Huiyan, and other responsible individuals.

The company's board of directors reviewed the decision and warning letters, concluding the non-compliance was due to objective factors impacting timely disclosure. The board, excluding Ms. YANG, affirmed its confidence in her integrity and ability, deeming her fit to continue as chairman and executive director.

Giant Leap Construction, an issuer of corporate bonds trading on the Shanghai Stock Exchange, and Country Garden Holdings plan to strictly adhere to information disclosure requirements moving forward and safeguard bondholders' interests. Ms. YANG confirmed there is no other information requiring disclosure under Listing Rules and no other matters need to be brought to shareholders' attention.