Financial Street Holdings faces significant bad debt from joint venture loan

Financial Street Holdings announced that 32.676 million yuan in financial assistance provided to Chongqing Keshijin Real Estate Co. has become overdue and irrecoverable. This amount includes 23.0293 million yuan in principal and 9.6467 million yuan in interest. The company had extended the principal in April 2023, with a 10% annual interest rate, due by November 17, 2025.

The irrecoverability stems from the project not being fully completed and the government disallowing pre-sales, mandating current-house sales instead. This resulted in Keshijin Company having no sales proceeds or other funding sources to repay the loan. Consequently, Financial Street Holdings will fully provision for bad debts totaling 32.676 million yuan for this receivable.

As of the announcement date, Financial Street Holdings' total approved financial assistance limit from its board was 7.328 billion yuan. The outstanding balance of financial assistance provided by the company accounts for 18.84% of its latest audited net assets. Keshijin Company has also been listed as an enforcement subject.