CHINA AOYUAN Appoints KPMG Advisory as Financial Consultant

CHINA AOYUAN (03883) has announced that, as previously disclosed in the March 30, 2026, announcement, the company and the group as a whole continue to face significant liquidity pressure. Specifically, as of the date of this announcement, the company has not paid or caused to be paid the interest due on March 30, 2026, for the relevant notes before the expiration of the 30-day grace period. According to the terms of the relevant notes, this constitutes an event of default and has individually triggered cross-defaults under certain of the company's offshore financing arrangements. In light of the current circumstances, the company has decided to suspend payments of all principal and interest, whether due or becoming due, on its offshore financing obligations, effective March 30, 2026, to protect the best interests of creditors and other relevant stakeholders. To implement this decision fairly and strive to ensure equal treatment for the company's creditors and other offshore creditors of the group, the company will endeavor to have its subsidiaries similarly suspend payments of principal and interest on their respective offshore financing obligations. The suspension of the aforementioned financial obligations may lead to certain creditors of the group demanding accelerated or immediate repayment and/or taking action under the terms of the applicable documents. As of the date of this announcement, aside from notices received concerning mortgage loans, the company has not received any acceleration notices or other demands from other offshore creditors. The company has appointed KPMG Advisory (Hong Kong) Limited as its financial advisor and Linklaters as its legal advisor to assess the group's capital structure and liquidity and to assist the company in formulating an appropriate and comprehensive restructuring plan. To the fullest extent permitted by law, the company and its advisors are committed to adhering to the principles of inter-creditor fairness and equity and will communicate with creditors regarding potential options as necessary or appropriate to ultimately achieve a viable solution.