COUNTRY GARDEN(HK:02007) Xin Lang Cai Jing·2025-12-15 13:33Core Viewpoint - Country Garden has made significant progress in its debt restructuring efforts, with the Hong Kong High Court approving a $17.7 billion offshore debt restructuring plan, while also achieving favorable outcomes for its domestic debt restructuring [2][26]. Group 1: Debt Restructuring - The offshore debt restructuring plan involves a total debt of $17.7 billion, making it the second largest in the industry, surpassing other troubled real estate companies like Sunac and R&F [5][29]. - The restructuring aims to reduce debt by up to $11.6 billion, extend maturity periods up to 11.5 years, and lower the average borrowing cost from 6% to 2% [6][30]. - The restructuring process took 329 days, with the plan receiving creditor approval on November 5 and the court's sanction on December 4 [7][31]. Group 2: Organizational Changes - Country Garden initiated a restructuring of its organizational framework, reducing its property regions from 13 to 10, and appointed Cheng Guangyu as the new president, replacing Mo Bin, who has been with the company for 15 years [3][34]. - Cheng Guangyu is considered a trusted executive by Yang Huiyan, the new leader of Country Garden, who has also made significant changes to the company's structure [3][39]. Group 3: Future Outlook - The successful debt restructuring is seen as a critical first step in the company's self-rescue efforts, with Yang Huiyan emphasizing a "second entrepreneurship" phase for the company [19][43]. - Despite the positive developments, challenges remain in achieving sustainable profitability and adapting to a market that has shifted towards quality over quantity in real estate development [22][47]. - The company reported a significant revenue drop of 28.9% in the first half of the year compared to the previous year, highlighting ongoing market difficulties [23][47].