Xin Jing Bao·2025-05-21 14:42Core Viewpoint - Country Garden is facing an unprecedented credit crisis due to delayed financial disclosures, resulting in public reprimands from the Shanghai Stock Exchange and significant financial losses [2][3][4]. Financial Performance - For the fiscal year 2024, Country Garden reported a total revenue of approximately 252.8 billion yuan, a year-on-year decrease of about 37.0% [6]. - The company recorded a loss attributable to shareholders of approximately 32.8 billion yuan, a significant reduction from a loss of 178.4 billion yuan in 2023 [6]. - Total debt increased from approximately 249.6 billion yuan at the end of 2023 to about 253.5 billion yuan by the end of 2024, with over 100 billion yuan in default or cross-default situations [6]. Regulatory Issues - The Shanghai Stock Exchange publicly reprimanded Country Garden and its executives for failing to disclose the 2024 interim report on time, which was eventually disclosed on February 24, 2025 [2][3]. - Similar disciplinary actions were taken for the late disclosure of the 2023 annual report, affecting the company's market reputation and credit rating [3][4]. Debt Restructuring Efforts - Country Garden is focusing on debt restructuring as a critical path forward, with plans to complete the restructuring by December 31, 2025 [8]. - The company has accelerated asset disposals, raising over 60 billion yuan since 2022, and recently sold a stake in Blue Arrow Aerospace for 1.305 billion yuan to fund operations [7]. - As of May 9, 2024, over 50% of the holders of public notes have joined the restructuring support agreement, with the total debt restructuring amount reduced to approximately 14.074 billion USD [7]. Management Challenges - The transition of management to Yang Huiyan has coincided with a liquidity crisis and increasing debt pressures, raising concerns about the company's operational sustainability [6][8]. - The company faces significant challenges from market conditions, consumer confidence, and a declining gross profit margin in its real estate business [6].