Original title: China Aoyuan achieved sales of 18.3 billion yuan in the first nine months, and is negotiating to formulate a debt restructuring plan
On the evening of October 7, China Aoyuan (03883.HK) disclosed its sales in the first nine months.
Data shows that in the first nine months of this year, China Aoyuan achieved a total of 18.3 billion yuan in property contracted sales, down 81.42% year-on-year.
The shares of China Aoyuan have been suspended from trading at 9:00 a.m. on April 1, 2022, and there is still no sign of resumption of trading. As of now, China Aoyuan has not disclosed the 2021 annual report and 2022 semi-annual report.
China Aoyuan, which was caught in a liquidity crisis, released its quarterly information update on September 30.
China Aoyuan said that in terms of business, as of September 30, nearly 90% of China Aoyuan’s real estate projects were on schedule and on schedule. Efforts are made to improve liquidity conditions. In addition, following the landing of Guangzhou Yunhe Mansion, a cooperation project built by Greentown Management Holdings Co., Ltd., China Aoyuan signed a strategic cooperation agreement with Greentown Real Estate Development Group (“Greentown Development”) on August 31, 2022. Greentown Development will be responsible for Xi’an Development and management of Aoyuan Yufeng and Chongqing Nanchuan Aoyuan Park No. 1, including planning and design, engineering supervision, construction, marketing planning, etc.
In terms of debt restructuring, China Aoyuan said that the group continues to work closely with its financial and legal advisors to analyze the group’s financial position and formulate a consensus restructuring plan. The company’s financial advisor, KPMG Consulting (China) Co., Ltd. (“KPMG”), is assisting the company in communicating with all relevant stakeholders.
Work on the group’s proposed restructuring plan was underway as of September 30. The company also continued to engage in constructive discussions with its domestic and foreign creditors, with a view to maintaining stability and preserving value for the group and its creditors. As of September 30, the Group has entered into arrangements with certain domestic financial institutions to extend the term of existing domestic financing arrangements with principals exceeding RMB 23 billion, and the extension of other domestic financing arrangements has entered the negotiation stage with domestic creditors. The company maintains regular dialogue with potential investors on matters related to recapitalization as part of the implementation of a consensual debt restructuring.
China Aoyuan said that the group has not entered into any legally binding agreement with any relevant investors, and will make further announcements in due course in accordance with the requirements of the listing rules and applicable laws. (Reporter Li Xiaoqing)