On 31 March 2026, Zhenro Properties Group Limited released a voluntary quarterly update detailing progress on actions aimed at resolving the auditors’ 2024 disclaimer of opinion, which highlighted material uncertainties over going-concern status.
All seven remedial measures disclosed on page 85 of the 2024 annual report remain in force. Key developments are as follows:
1. Debt Restructuring • Management continues to negotiate an onshore-and-offshore holistic liability solution. • No significant progress has been achieved on the revised restructuring plan announced on 30 June 2025, and additional time is required to formulate a concrete proposal that reflects current market conditions.
2. Existing Borrowings • From 1 January 2026 to 28 February 2026, no onshore loans were renewed or extended, and there were no interest-cost reductions.
3. New Financing • The company has held discussions with financial institutions, but no new borrowings were secured during the period from 1 January 2026 to the announcement date.
4. Operating Strategy and Cash Management • Efforts are focused on accelerating property sales; however, management has avoided distressed discounting to protect asset values amid a weak PRC property market. • Cost-control initiatives yielded savings against budget across the group’s seven operating regions between 1 January 2026 and the announcement date.
5. Asset Disposals • No disposals of equity interests in project development companies occurred during the reporting period, though suitable opportunities continue to be explored.
The board stated it will maintain proactive implementation of the existing measures and provide further updates as appropriate. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.
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