YIDA CHINA (03639) announced that in May 2017, Bohai International Trust Co., Ltd. (Bohai Trust), as the creditor, entered into a trust fund loan agreement with the company's indirectly wholly-owned subsidiary, Dalian Gaoji Real Estate Development Co., Ltd. (Gaoji Company). The original total loan amount was RMB 1.6 billion. Following several disbursements, repayments, and contract amendments, the outstanding loan principal is RMB 498 million, with a maturity date of May 2, 2025, and an interest rate of 4%. The loan was secured by the following: (i) mortgages on approximately 27,000 square meters of land and 2,100 square meters of property held by Gaoji Company and the company's subsidiary, Dalian Lanwan Real Estate Development Co., Ltd.; (ii) a pledge on 100% of the equity in Gaoji Company held by Yida Real Estate Co., Ltd.; and (iii) joint and several liability guarantees provided by the company's subsidiaries, Yida Development Co., Ltd. and Dalian Software Park Rongtai Development Co., Ltd.
As of the date of this announcement, the company has failed to repay the RMB 498 million loan principal and corresponding interest. Following the loan's delinquency, the company has maintained friendly communication with the creditor and is actively advancing plans for an extension and debt resolution. Both parties remain engaged in ongoing, amicable negotiations.
As disclosed in the company's 2025 interim report, as of June 30, 2025, the group had failed to repay principal, interest, and agreement fees totaling RMB 6.445 billion by their scheduled due dates. Several default events and this payment delinquency resulted in RMB 5.107 billion of the group's borrowings becoming immediately repayable upon demand by lenders as of June 30, 2025. As of February 28, 2026, the company estimates that the failure to repay this specific loan at maturity has led to cross-default provisions being triggered on approximately RMB 4.223 billion of other borrowings. This cross-default amount is included within the aforementioned totals for delinquent and immediately repayable borrowings. The current loan default has not triggered any additional cross-defaults.
The company's board of directors hereby informs shareholders and potential investors that the aforementioned loan delinquency constitutes a debt default. As of the date of this announcement, both parties are still actively negotiating the terms of a loan extension.
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