Caixin reported on 5th September that in the capital markets, there were news about Country Garden planning to extend the grace period for the repayment of 9 domestic debts, and is currently arranging a new debt restructuring plan.

According to DM data platform information, Country Garden notified bondholders on September 4th to convene a meeting, intending to extend the grace period for the repayment of some bonds until March 2025; the voting is scheduled to take place from September 9th to September 13th, and this adjustment includes some bonds that have been extended for the second time.

DM information shows that Country Garden faces the repayment of multiple principal and interest in September, and if the vote is passed, the company plans to develop a comprehensive reorganization plan within the grace period, or consider the possibility of asset securitization to repay the debts.

In response, Country Garden Group stated to the reporters that the industry is still facing challenges, and due to the weakening market expectations and soft demand, the company's sales performance continues to be under pressure. "At present, sales recovery and fund management issues still exist, and there is still uncertainty regarding the company's short-term fund raising."

The Country Garden side told reporters that in the first 8 months of 2024, the total equity sales amount of the company was approximately 32.8 billion yuan, a year-on-year decrease of about 78%. Under the combined pressure of industry-wide sales and restricted fund allocation, the company has not been able to raise sufficient funds for the full repayment of the principal and interest of the corporate bonds.

In fact, Country Garden Real Estate Group Co., Ltd. issued an announcement on September 2nd, convening a bondholder meeting regarding the arrangement for the repayment of the corporate bonds, in order to ensure fair information disclosure and protect the interests of the vast number of investors. In accordance with relevant regulations and with the company's application, "H19 Bige3", "H1 Bige01", "H1 Bige4", "22 Bige03" will be suspended from the market on September 3, 2024, and "H20 Bige3", "H20 Bige4", "H1 Bige02", "H1 Bige03" will continue to be suspended, with the resumption of trading to be determined later.

"The company hopes to utilize this extension arrangement to make every effort to raise funds within the period by maximizing sales, revitalizing assets, and reducing unnecessary administrative expenses. On the other hand, the company will actively communicate with investors and negotiate a new comprehensive debt restructuring plan to better match the current market cycle and the company's financial situation. The company hopes that investors can further grant the company a 6-month grace period, and the company will fully communicate with investors during the grace period to formulate the next comprehensive plan." Country Garden stated.

A person close to Country Garden said that the current top priority for Country Garden is to ensure the delivery of houses. The company will invest a considerable amount of funds and energy into the delivery work, and make every effort to win the battle of ensuring delivery.

At the monthly management meeting held by Country Garden in August, Yang Huiyan, Chairman of the board of directors of Country Garden, explicitly stated that the work plan for the second half of this year will revolve around ensuring house delivery and proactively managing the balance sheet. The company has developed a clear implementation path for this purpose, and has detailed the goals to the individual level, implementing them into budget management.

Industry insiders believe that according to the company's set goals, the overall delivery work in the first half of the year has achieved considerable results.

According to the monitoring data from E-house Research Institute, as of the end of June 2024, Country Garden has delivered a cumulative total of 1.545 million units of houses, with a cumulative delivery area of 18.22 million square meters, ranking first in delivery performance. The scope covers 29 provinces and 178 cities, with some projects achieving early delivery and the delivery volume ranking first in the industry.

In addition, in March 2024, Country Garden in Jiaozuo, Henan delivered three months ahead of schedule and achieved simultaneous delivery and certificate issuance. In this case, analysts from E-house Research Institute pointed out that at the beginning of the project construction, a detailed milestone plan was formulated according to the actual situation, and the work difficulties in ensuring delivery were sorted out and coordinated on a weekly basis. In addition, regular inspections were conducted to ensure construction progress, while also ensuring safety management and quality control, fully guaranteeing the smooth delivery of the project.

In terms of activating assets, in December of last year, Country Garden transferred its equity interest in Zhuhai Wanda Commercial Management at a price of 3.069 billion yuan; in January of this year, it packaged and sold five assets in Guangzhou for 3.818 billion yuan; it also sold the remaining land rights in Sydney for 240 million Australian dollars. At the end of May this year, Country Garden's venture capital company is seeking to sell its equity interest in a technology company it holds for approximately 2 billion yuan.