On September 5th, there was news from the capital markets that Country Garden announced plans to extend the grace period for repayment of its 9 domestic debts until March 2025, and is currently formulating a new debt resolution plan. In response to this, Country Garden officials stated that the industry is still facing challenges, with the company's sales performance continuing to be under pressure due to weakening market expectations and soft demand. In the first eight months of 2024, the company's sales amount totaled about 32.8 billion yuan, a year-on-year decrease of about 78%. Due to the overall pressure on industry sales and the impact of multiple factors such as limited funds allocation, the company has not yet been able to raise sufficient funds to fully repay the principal and interest of the company bond.
Country Garden stated that currently, there are still objective issues related to sales recovery and capital monitoring, and there is still uncertainty in raising funds in the short term. Therefore, the company hopes to use this extension arrangement to make every effort to raise funds within the period by maximizing sales, revitalizing assets, and reducing unnecessary administrative expenses. Additionally, the company also hopes to actively communicate with investors and negotiate a comprehensive new debt resolution plan to better match the current market cycle and the company's financial situation. The company hopes that investors can further grant a 6-month grace period, during which the company will have full communication with investors and formulate a comprehensive package of solutions for the next steps.
