China Aoyuan details debt-restructuring progress, RMB864 million H1 sales and 44% workforce cut in drive to lift audit disclaimer

Bulletin Express06-30

China Aoyuan Group Limited reported further progress on its initiatives to remove the auditor’s disclaimer of opinion and stabilise operations.

Debt restructuring • The Group is “close to finalisation” of an onshore debt-restructuring proposal designed to create a long-term mechanism for alleviating debt pressure and strengthening cash-flow risk controls. Discussions with onshore creditors are under way, and a formal update will be released once substantive milestones are reached. • During 1H26, the Group secured maturity extensions on existing onshore financing totalling about RMB2.00 million in principal through new agreements with several domestic financial institutions.

Operating performance • Property contracted sales in 1H26 reached approximately RMB864.00 million, representing contracted gross floor area of around 84,700 sq.m. • To curb administrative expenses, total headcount has been cut by roughly 44% since January 2025, with the organisational structure consolidated into two regional offices.

Litigation and liabilities • Three litigation cases concerning overdue or outstanding operational payables, bank and other borrowings were settled in 1H26. Negotiations with remaining creditors continue.

Liquidity measures • The Group is actively assessing potential asset disposals to bolster cash resources; further announcements will be made upon material progress.

Management reiterated that the disclosed figures are based on internal data and may differ from future audited or interim results. Shareholders and investors are advised to exercise caution when dealing in the Company’s securities.

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