During the session on May 17,It was announced on the Hong Kong Stock Exchange that the High Court of the Hong Kong Special Administrative Region (hereinafter referred to as the "High Court") issued an order,The hearing of the company’s liquidation petition was postponed to June 11, 2024.It is said that shareholders and investors will be informed of any major development of the petition, and a separate announcement will be issued in due course.
On February 28th this year, it was announced on the Hong Kong Stock Exchange that Ever Credit Limited (the petitioner) filed a liquidation petition with the High Court on February 27th, 2024, concerning the unpaid term loan with principal of about HK$ 1.6 billion between the petitioner (the lender) and the company (the borrower) and accrued interest. At that time, the High Court set the date for the first hearing of the petition as May 17, 2024.
Country Garden resolutely opposes the petition.
The creditors of the above debts are engaged in manufacturing and selling copper-clad panels.. In October 2023, it was announced that Country Garden failed to repay HK$ 1.598 billion according to the financing agreement, and issued a statutory demand for debt repayment to Country Garden. Previously, Country Garden used ""offset some of the money, but the outstanding HK$ 1.598 billion still needs to be repaid in cash.
In this regard, the announcement issued by Country Garden on February 28 showed that it resolutely opposed the petition. The presentation of the petition does not mean that the petitioner can successfully liquidate the company. The Board of Directors reminded the shareholders and potential investors of the company that if the company is finally liquidated by petition, the transfer of shares of the company made on or after the commencement date will be invalid without the approval order of the High Court. The company will seek legal advice and take all necessary actions to protect legal rights. In addition, the company will seek legal measures to resolutely oppose the petition. The company will continue to actively communicate with overseas creditors and form a reorganization plan with them as soon as possible, with a view to announcing the terms of the plan to the market as soon as practicable. At the same time, the company will try its best to keep active communication with the petitioner, and negotiate with the petitioner in a friendly way under the principle of fairness to all creditors to properly handle the problem (including making efforts to urge the petition to be withdrawn or rejected as soon as possible).
Previously, ChinaThe reporter learned from people close to Country Garden that the debt amount of Country Garden-related Jianye Group is very low in the overall interest-bearing liabilities abroad, and the radical action of a single creditor will not have a significant impact on the company’s security, normal operation and overall restructuring of overseas debts. Referring to other cases of listed real estate enterprises in default in the industry, it is more common for individual creditors to apply to the High Court for company liquidation. The company resolutely opposes the petition, and will seek legal advice, take all necessary actions, and actively and properly defend with the consulting team.
Continue to promote guaranteed delivery.
In terms of debt repayment, Country Garden Real Estate Group Co., Ltd. announced on May 11th that its interim notes "23 Country Garden MTN001" and "23 Country Garden MTN002" had all paid interest within the grace period. Previously, the company announced on May 9 that the interest of 35.55 million yuan of "23 Country Garden MTN002" could not be paid on time due to the unsatisfactory sales recovery and the difficulty in fund allocation. However, after efforts, the company raised funds during the grace period, revitalized the mortgaged assets, and finally paid the interest payable and the interest within the grace period in full.
Country Garden Group held a monthly management meeting on May 13th. Yang Huiyan, Chairman of the Board of Directors of Country Garden Group, said that the recent relaxation of purchase restrictions in first-and second-tier cities and the "trade-in" measures show that the government is taking actions to promote market liquidity and strive to gradually revive industry confidence. Although the industry as a whole is still at a low level, by closely relying on the government and actively responding to favorable policies such as white list, ensuring delivery as the bottom line of enterprises will be the cornerstone for enterprises to cross the cold winter.
Mo Bin, president of Country Garden Group, said that ensuring delivery is the social responsibility and conscience of enterprises, and we should take it as the core task at present and try our best to accomplish it.
According to Country Garden, in the first four months of this year, the delivery area of Jianke Group under the company exceeded 3.5 million square meters, and the planned delivery area in the next six months exceeded 20 million square meters. In terms of agency construction, Country Garden Construction Management (Phoenix Zhituo) currently has 33 projects under management, with a management area of 7.24 million square meters and a sales value of nearly 30 billion yuan.
In April, 2024, Country Garden realized the contracted sales amount of the company’s shareholders’ equity of 3.85 billion yuan in a single month, and the accumulated sales in the first four months was about 17.36 billion yuan.