Changsha Broad Homes Industrial Group Co., Ltd. (2163) recently announced its decision to submit a bankruptcy restructuring application to the Changsha Intermediate People’s Court. According to the announcement, the company cited prolonged macroeconomic pressure, real estate market regulations, and pandemic-related disruptions as significant factors contributing to heightened debt and operational difficulties.
The announcement highlights that, despite multiple self-rescue measures, financial strains have intensified and the company is unable to meet its matured debt obligations. It notes that Changsha Broad Homes possesses technical expertise, an established industry position, and strong brand influence in prefabricated construction, supporting its decision to pursue restructuring. The company aims to introduce high-quality strategic investors, resolve debt risks, and enhance core competitiveness for the benefit of shareholders, employees, and society.
If the court permits the bankruptcy restructuring process, Changsha Broad Homes intends to actively plan relevant matters, pursue debt resolution arrangements with creditors and shareholders, and formulate a restructuring plan for court approval. The announcement mentions that this plan could facilitate debt reduction, divestment of non-performing assets, and a return to sustainable growth.
Shares of Changsha Broad Homes have been suspended from trading since March 21, 2025 and remain halted pending further notice. The company acknowledges potential risks, including the possibility of being declared bankrupt and facing delisting, should the restructuring ultimately fail. The final outcome depends on the court’s decision regarding the acceptance of the application and the subsequent resolution of the restructuring process.
