Country Garden： Delaying the publication of 2023 annual results, keeping the delivery bottom line and trying to improve liquidity.

On March 29th, Country Garden (02007.HK) issued an announcement, delaying the publication of 2023 annual results; Trading in the company’s shares was suspended on the Stock Exchange from 9: 00 am on April 2.

Country Garden explained that due to the continuous fluctuations in the industry, the business environment faced by the Group is becoming increasingly complex, and the company needs to collect more information to make appropriate accounting estimates and judgments, so as to reasonably reflect the changes in the industry and the company in the consolidated financial statements for 2023.

At the same time, as the debt restructuring work of the Company is still in progress, the projects are numerous and widely distributed, and the related due diligence involves a large amount of work and high complexity, the Company needs more time to collect relevant financial data to evaluate the current and future financial resources and financial obligations of the Group.

Country Garden said that the company continued to go all out to ensure the smooth progress of the delivery work. In 2023, more than 600,000 houses were delivered, with a total delivery area of 71.62 million square meters. Country Garden told The Paper that it expects to deliver over 480,000 sets this year and over 1 million sets in two years.

As for the guaranteed delivery, Country Garden said in the announcement that as of the announcement date, the company will continue to adhere to the earmarking of funds and strictly manage the pre-sale monitoring funds, and at the same time use various support policies and rely on policies to help the project delivery.

In terms of liquidity, Country Garden said that the company is striving to revitalize assets such as bulk businesses and reduce non-core and non-essential operating expenses, so as to keep the delivery bottom line and make every effort to improve the liquidity situation.

In addition, Country Garden attaches great importance to the cooperative relationship with suppliers. In the current market fluctuation, the Group keeps continuous communication with major contractors and suppliers to ensure that all parties maintain a consensus on the project schedule and funding arrangements, and continue to effectively ensure the normal operation of the project and complete the task of ensuring the delivery of the building through negotiation of a reasonable payment plan.

At the same time, the company attaches great importance to debt risk resolution. In the past few months, the Company has been working with financial advisers and legal advisers to assess the Group’s situation and formulate debt restructuring plans to alleviate the current liquidity problem.

Country Garden said that the company is still working with financial consultants and legal consultants. The company also actively engaged in constructive dialogue with creditors, and accelerated the formulation of a restructuring plan agreed by all parties on the premise of respecting the existing legal status and legal repayment order of all creditors.

As of press time, Country Garden was HK$ 0.485 per share, up 1.04%.