On the evening of March 28, Country Garden issued an announcement on the Hong Kong Stock Exchange to postpone the publication of its 2023 annual results, and the board meeting will also be postponed.
Country Garden issued a screenshot of the announcement on the Hong Kong Stock Exchange
If it is not possible to announce the 2023 annual results on or before 31 March
Trading on the Hong Kong Stock Exchange was suspended on 2 April
According to the announcement, Country Garden is facing an increasingly complex business environment, and the company needs to gather more information to make appropriate accounting estimates and judgments, so as to reasonably reflect the changes in the industry and the company in the group's consolidated financial statements for the year ended December 31, 2023.
At the same time, as Country Garden's debt restructuring work is still ongoing, given the large number and wide distribution of the Group's projects, and the large workload and complexity involved in the relevant due diligence, the Group needs more time to collect relevant financial information to carefully assess the Group's current and future financial resources and financial obligations.
As such, the Company expects that it will take longer to complete the preparation of the Group's consolidated financial statements for the year ended 31 December 2023 and will not be able to comply with the relevant requirements of the Listing Rules to publish the 2023 annual results by 31 March 2024.
Country Garden said in the announcement that the group is working with financial advisers and legal advisers to assess the group's position, and working closely with various creditors to develop practical solutions as soon as possible. In addition, the Board of Directors and the Company's management are committed to continuing to actively negotiate with creditors on debt restructuring issues, and will continue to work closely with the auditor, PricewaterhouseCoopers, to announce the 2023 annual results and despatch the 2023 annual report as soon as possible.
According to the announcement, according to the relevant provisions of the listing rules, if the company is unable to announce the 2023 annual results on or before March 31, 2024, it is expected that the company's shares will be suspended from 9 a.m. on April 2, pending the announcement of the 2023 annual results.
Country Garden issued a screenshot of the announcement on the Hong Kong Stock Exchange
The board of directors of Country Garden Group believes that the suspension will not have a material impact on the company's operations.
Continue to promote the delivery of buildings
The announcement pointed out that Country Garden continues to go all out to ensure the smooth progress of the delivery work.
In 2023, Country Garden and its joint ventures and associated companies will deliver more than 600,000 housing units, with a cumulative delivery area of 71.62 million square meters, covering 249 cities in 31 provinces across the country.
Country Garden said that it will continue to actively respond to the call of supervision, clarify the main responsibilities of enterprises in the delivery process, adhere to the special use of funds, strictly manage pre-sale monitoring funds, and at the same time rely on policies to help project delivery with the help of various national and local government support policies for the industry.
At the level of suppliers of the guaranteed delivery of the building, Country Garden said that it maintained continuous communication with the main contractors and suppliers to ensure that all parties maintained a consensus on the progress of the project and the funding arrangement, and continued 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.
According to Country Garden, at present, the company's domestic delivery work and overseas debt restructuring work are progressing in an orderly manner, and the relevant work has been strongly supported by stakeholders, including relevant local governments and overseas creditors.
Country Garden issued a screenshot of the announcement on the Hong Kong Stock Exchange
As of March 15, 272 projects under Country Garden have been included in the "white list", distributed in 25 provinces (autonomous regions and municipalities directly under the central government) across the country, and the amount of financing support has reached 1.732 billion yuan, and other projects that have entered the "white list" are being put in place one after another. Among them, on March 15, the first batch of "white list" projects of the real estate coordination mechanism in Guangzhou, Country Garden Guangzhou Nanpu Village Project, successfully received the first batch of 50 million yuan loan support from Minsheng Bank, and is expected to lend 400 million yuan to 450 million yuan throughout the year.
People close to the company said that the number of projects shortlisted for the "white list" of Country Garden has increased significantly, and some projects have been approved by banks for loans, indicating that the company's efforts to actively save itself and go all out to ensure delivery in the current market environment have been supported and recognized by the government and financial institutions. The national "white list" policy for real estate financing has achieved remarkable results, which will help promote the delivery of enterprises.
Wind data shows that as of the close of trading on March 28, Country Garden was quoted at HK$0.485 per share, an increase of 1.04%.
Source: China Economic Net WeChat, Country Garden Announcement, China Securities Journal WeChat
Editor: Miyoshi