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news recently came out in the capital market that country garden plans to extend the grace period for repayment of nine domestic debts, and to this end, it is arranging a new debt settlement plan.

according to information from the dm data platform, country garden notified bondholders on september 4 to convene a meeting, intending to postpone the repayment obligations of some bonds until march 2025; the voting is scheduled to take place from september 9 to september 13, and the bonds adjusted this time include some bonds that have been extended twice.

dm information shows that country garden has multiple principal and interest payments to make in september. if the vote is passed, the company plans to formulate a subsequent comprehensive restructuring plan within the grace period, or consider possibilities such as asset-debt swaps.

in response, country garden group told reporters that the industry is still full of challenges. due to the weakening market expectations and weak demand, the company's sales performance continues to be under pressure. "at present, problems such as sales recovery and capital monitoring still exist, and there is still uncertainty about the company's ability to complete capital raising in the short term."

country garden told reporters that in the first eight months of 2024, the company's equity sales amounted to about 32.8 billion yuan, a year-on-year decrease of about 78%. under the influence of multiple factors such as the overall pressure on industry sales and limited capital allocation, the company has not yet been able to raise sufficient funds for the principal and interest of corporate bonds to be paid.

in fact, country garden holdings co., ltd. issued an announcement on september 2, stating that it plans to hold a bondholders meeting on the company's bond repayment arrangements in the near future. in order to ensure fair information disclosure and protect the interests of investors, in accordance with relevant regulations and upon the company's application, "h19 bi di 3", "h1 bi di 01", "h1 bi di 04" and "22 bi di 03" will be suspended from the opening of the market on september 3, 2024, and "h20 bi di 3", "h20 bi di 4", "h1 bi di 02" and "h1 bi di 03" will continue to be suspended, and the resumption time will be determined separately.

"the company hopes to take advantage of this extension arrangement to, on the one hand, do its utmost to raise funds during the period by maximizing sales, revitalizing assets, and cutting unnecessary administrative expenses. on the other hand, the company will actively communicate with investors to negotiate a new comprehensive plan for the handling of the company's debts to better match the current market cycle and the company's financial situation. the company hopes that investors can further give the company a grace period of 6 months. the company will fully communicate with investors during the grace period to comprehensively formulate the next package plan." country garden said.

a person close to country garden said that country garden’s top priority at the moment is to ensure the delivery of houses. the company will invest a considerable amount of funds and energy into the work of ensuring delivery and will do its best to win the battle to ensure delivery.

at the monthly management meeting held by country garden in august, yang huiyan, chairman of the board of directors of country garden group, made it clear that the work plan for the second half of this year will focus on the two core goals of ensuring the delivery of houses and active balance sheet management. the company has formulated a clear implementation path for this purpose, and has broken down the goals to the individual level and implemented them into budget management.

industry insiders believe that according to the goals set by the company, its overall delivery guarantee work in the first half of the year has achieved considerable results.

according to the monitoring data of e-house research institute, as of the end of june 2024, country garden has delivered a total of 154,500 houses with a total delivery area of ​​18.22 million square meters, ranking first in delivery performance. the scope covers 178 cities in 29 provinces. some projects were delivered ahead of schedule, and the delivery volume ranked first in the industry.

in addition, in march 2024, country garden in jiaozuo, henan province, was delivered three months ahead of schedule, achieving the goal of handing over the certificate upon delivery. in this case, analysts from e-house intelligence pointed out that at the beginning of the project construction, a detailed node plan was formulated according to the actual situation, and the difficulties in ensuring delivery were sorted out and coordinated on a weekly basis. regular inspections were also carried out to ensure safety management and quality control on the basis of ensuring the progress of the construction, so as to ensure the smooth delivery of the project.

in terms of asset activation, country garden transferred its equity in zhuhai wanda commercial management for rmb 3.069 billion in december last year; in january this year, it sold five assets in guangzhou for rmb 3.818 billion; it also sold the remaining land interests in sydney for aud 240 million. at the end of may this year, country garden venture capital was seeking to sell its equity in a technology company to raise about rmb 2 billion.