BROAD HOMES (02163) announced that due to macroeconomic challenges, property market regulations, and pandemic impacts in recent years, the company has faced severe debt and operational crises. Despite implementing multiple self-rescue measures, the results have been unsatisfactory, leading to the full exposure and continuous escalation of various risks.
In accordance with the Company Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, the company currently meets the conditions for restructuring as stipulated in Articles 2 and 7 of the Enterprise Bankruptcy Law, given its inability to repay maturing debts and evident lack of solvency.
The company possesses significant technological expertise, a strong industry position, and brand influence in the prefabricated construction sector, making it a viable candidate for restructuring. As a listed company on the Stock Exchange, BROAD HOMES also holds platform and resource advantages, which could facilitate the introduction of strategic investors through restructuring. This would help resolve debt risks, enhance core competitiveness, and create greater value for shareholders, employees, and society.
Following board and shareholder approvals, the company submitted a bankruptcy restructuring application to the Changsha Intermediate People's Court on October 30, 2025. Bankruptcy restructuring is a judicial process aimed at rehabilitating distressed enterprises by adjusting liabilities, reorganizing operations, and enabling financial recovery.
If the court approves the application, BROAD HOMES will actively plan restructuring efforts, seek investors, and collaborate with the court, creditors, and shareholders to formulate a debt resolution plan. The goal is to draft a restructuring proposal for creditor committee review and court approval, ultimately eliminating debt burdens, divesting non-performing assets, and restoring sustainable growth.
The filing is not expected to significantly impact the company's current financial condition or operations in the short term. The final effects will depend on subsequent developments and annual audit results.
