Sou Hu Cai Jing·2025-11-07 02:05Core Viewpoint - Country Garden's offshore debt restructuring plan has successfully passed a creditor meeting, with over 75% approval from both debt groups, marking a significant step towards reducing its debt burden of approximately $17.7 billion [3][6][12] Debt Restructuring Progress - The offshore debt restructuring plan involves a total of about $17.7 billion, equivalent to approximately 127 billion yuan, with an expected debt reduction of about $11.7 billion (approximately 84 billion yuan) and a potential restructuring gain of up to 70 billion yuan [3][12] - The restructuring process has taken 300 days, starting from the announcement of key terms on January 9, 2025, to the creditor meeting on November 5, 2025 [6][9] - The restructuring plan includes options such as cash buybacks, debt-to-equity swaps, and new debt replacements, providing creditors with various choices [9][12] Financial Situation - As of mid-2025, Country Garden's interest-bearing liabilities amounted to approximately 254.58 billion yuan, with over 60% being bank and other borrowings, and more than 80% of these due within one year [4] - The company has a cash balance of approximately 24.06 billion yuan, which has decreased by 5.83 billion yuan since the beginning of the year [4] Support from Major Shareholders - The support from Country Garden's major shareholder has been crucial for the successful passage of the restructuring plan, with the shareholder providing approximately 3 billion HKD in cash support since the debt restructuring began [10][11] Operational Focus - Country Garden aims to maintain project delivery and stabilize sales while seeking new growth drivers post-restructuring [14] - The company has delivered over 380,000 housing units in 2024, accounting for about 10% of the national total, and plans to deliver 200,000 units in 2025 [14][15] - Despite a 35.55% year-on-year decline in total sales to approximately 33.99 billion yuan from January to October 2025, the company has substantial land reserves of about 10.4 million square meters, with 23% located in Guangdong [16][17] Cost Control Measures - Since 2022, Country Garden has implemented various cost control measures, including asset disposals that have recouped over 65 billion yuan, and reductions in marketing, administrative, and financial expenses [20][21]