The financial report was delayed again, and Country Garden continued to suspend trading.

21st century business herald reporter Wu Shuying reports from Shenzhen.

Country Garden’s mid-year report in 2024 could not be released smoothly.

On the evening of August 30, 2024, Country Garden announced that it would continue to delay the publication of the annual report for the whole year of 2023, and mentioned that due to this, its interim annual report for 2024 could not be released on time.

Country Garden said in the announcement that due to the continuous fluctuation of the industry and the ongoing debt restructuring, the company needs more time to collect relevant information to make appropriate accounting estimates and judgments in order to implement the 2023 annual results. At present, the above work is still in progress. Before the completion of the 2023 annual audit report, the company is temporarily unable to issue the 2024 semi-annual financial statements.

At the same time, Country Garden also told the 21st century business herald reporter that it is still making every effort to promote the preparation of the 2023 annual report, with a view to speeding up the preparation and audit of the company’s annual report as much as possible, and will make another announcement on the expected publication dates of the 2023 annual results and the 2024 semi-annual results at an appropriate time.

Country Garden will continue to suspend trading due to the failure to release financial reports on time. Since the suspension was announced on April 2 this year, Country Garden has been suspended for nearly four months.

One of Country Garden’s main tasks at present is debt restructuring. In terms of overseas debt restructuring, according to a recent announcement issued by Country Garden, Country Garden is actively exploring all feasible overseas debt restructuring options with creditor groups and their consultants, including the Coordination Committee representing bank creditors and the task force representing bondholders, so as to promote a comprehensive debt restructuring plan that can establish a sustainable capital structure for Country Garden, thus ensuring long-term development, safeguarding the rights and interests of all stakeholders and ensuring fair treatment of all creditors.

At present, Country Garden has appointed KPMG Enterprise Consulting (China) Co., Ltd. as the main financial consultant and Nianlida Law Firm as the main legal consultant to assist in evaluating the capital structure and implementing the comprehensive restructuring. Country Garden said that in the past few months, it and its consultants actively cooperated with De Anhua to analyze the independent debt recovery rate of the Group, providing a common information platform for creditors, helping creditors to make better rational judgments when examining the company’s operation, and providing creditors with a benchmark for comparison with any new tools issued according to comprehensive restructuring.

In this process, a few creditors took action in advance to file a liquidation petition against Country Garden, but there is no conclusion yet. According to the announcement issued by Country Garden, with the support of the Coordination Committee and the project team, the Hong Kong High Court approved Country Garden Holdings’ application for an extension of the hearing of the liquidation petition on July 29, 2024, and the relevant hearing is now postponed to January 20, 2025.

In terms of performance, Country Garden has recorded a large loss in the interim report last year. According to the financial report, in the first half of 2023, Country Garden achieved a total revenue of about 226.31 billion yuan, a gross loss of about 24.26 billion yuan, and a net loss of about 45.35 billion yuan.