Country Garden outlines progress on debt restructuring, petition dismissal and liquidity measures to address auditor’s disclaimer

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Country Garden Holdings (Country Garden) has detailed a series of actions taken since April 2025 to tackle the auditor’s disclaimer of opinion on its 2024 and 2025 consolidated financial statements, which stemmed from going-concern uncertainties.

Onshore bond restructuring • A comprehensive restructuring plan covering nine on-shore corporate bonds was approved by bondholders between September and December 2025. • The plan reshapes principal and interest repayment profiles and offers three alternatives—cash repurchase, stock conversion and general creditor claims. • In February 2026 the Group activated the cash repurchase option with a funding cap of RMB450.00 million. All repurchase applications have been completed; subsequent option allocations will follow the agreed timetable.

Winding-up petition withdrawn • The High Court of Hong Kong dismissed the winding-up petition on 16 February 2026 after implementation of the restructuring, removing a key legal overhang.

Operating cash generation and asset sales • Contracted sales attributable to shareholders from January 2025 to February 2026 reached RMB37.50 billion, representing 4.59 million sq m of gross floor area. • To bolster liquidity, the Group disposed of its stake in LandSpace Technology for RMB1.31 billion, complementing earlier exits from Zhuhai Wanda Commercial Management and Changxin Technology.

Next steps and disclosure cadence Country Garden will continue to prioritise housing delivery, asset revitalisation and cash-flow enhancement while executing the remaining elements of the restructuring package. Management has committed to release progress updates every three months until the auditor’s disclaimer is fully resolved.

Shareholders and potential investors are urged to exercise caution when dealing in the company’s securities.

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