Core Viewpoint - The article discusses the implications of value-added tax (VAT) on financial asset transactions during debt restructuring, highlighting the potential tax risks for companies involved in such transactions [2]. Group 1: Debt Restructuring Case - On June 5, 2024, Company A and Company B signed a debt restructuring agreement where Company A used its debt instrument investment in Company C to repay a debt of 15 million yuan owed to Company B [3]. - Company A recognized the financial asset used for repayment at a book value of 10 million yuan, with a fair value of 9.5 million yuan, and calculated the VAT on the transaction as 1.8 million yuan [3][6]. - Company B, upon receiving the financial asset, recorded it as a debt investment at a value of 9.5 million yuan and recognized an investment income of 5.48 million yuan [4][8]. Group 2: VAT Treatment for Seller - According to the regulations, the transfer of financial products falls under the scope of financial services, with a VAT rate of 6% applicable to general taxpayers [5]. - Company A's calculation of VAT on the transfer of financial products was confirmed to be correct, applying the appropriate tax rate [5]. - The correct VAT calculation for Company A was adjusted to 1.7 million yuan based on the formula for determining sales revenue [6]. Group 3: VAT Treatment for Buyer - The regulations state that financial product transfers cannot issue special VAT invoices, requiring the issuance of regular VAT invoices instead [7]. - Consequently, Company B could not deduct input VAT and included the VAT amount in the cost of the financial asset, resulting in a debt investment amount of 9.5 million yuan [7][8].

Financing Overview - In July 2025, the total bond financing in the real estate sector reached 71.39 billion yuan, a year-on-year increase of 90.3% [1] - The credit bond financing amounted to 45.65 billion yuan, up 104.8% year-on-year, accounting for 64.0% of the total [1] - Asset-backed securities (ABS) financing was 25.74 billion yuan, a 90.0% increase year-on-year, making up 36.0% of the total [1] Financing Costs - The average bond financing interest rate was 2.54%, down 0.24 percentage points year-on-year and 0.51 percentage points month-on-month [7] - The average interest rate for credit bonds was 2.32%, a decrease of 0.21 percentage points year-on-year [7] - The lowest financing cost was recorded by China Jinmao at 1.70% [7] Corporate Issuance Dynamics - Major issuers included China Jinmao, Poly Developments, and China Resources, with issuance amounts exceeding 3 billion yuan [5] - Private and mixed-ownership enterprises like Greentown, Binjiang, and New Town successfully issued credit bonds totaling approximately 3.01 billion yuan [5] - The average issuance term for bonds was 3.79 years, with a focus on 1-3 year and over 3 year bonds [5] Capital Market Dynamics - Vanke and Jianfa secured new funding, while Daxin Real Estate plans to go private [9] - China Resources Land received a 2 billion yuan three-year loan from a bank, and Vanke obtained a loan of 1.681 billion yuan from its major shareholder [9] - Over ten real estate companies have had their debt restructuring plans approved, involving a total debt of approximately 1 trillion yuan [9]

Core Viewpoint - The company, Yuanyang Group, has introduced a preliminary restructuring plan for its domestic bonds, involving approximately 18.07 billion yuan in bonds, with four repayment options available to creditors, potentially reducing the domestic bond balance by up to 69% [1][2][8]. Summary by Sections Domestic Bond Restructuring Plan - The restructuring plan offers four repayment options: cash buyback, stock economic rights, asset debt settlement, and long-term debt retention [2][6]. - The bonds involved include seven company bonds and three bank financing tools, with a total outstanding principal amount of approximately 18.07 billion yuan as of the end of 2024 [4][5]. Repayment Options 1. **Cash Buyback Option**: The company plans to buy back up to 4 billion yuan of bonds at 20% of their remaining face value, resulting in a repayment rate of 20% [6]. 2. **Stock Economic Rights Option**: The company will issue up to 2.8 billion new shares to repay part of the bonds, with an estimated repayment rate of around 20% [6][7]. 3. **Asset Debt Settlement Option**: This option is divided into residential and commercial project income rights, with repayment rates of 30% and 100% respectively, although actual cash recovery depends on project income stability [7]. 4. **Long-term Debt Retention Option**: The maturity of the bonds will be extended by 10 years to September 30, 2035, with an interest rate adjustment to 1% per year, which dilutes the value of creditors' claims [6][8]. Impact of Restructuring - If the first three options are fully subscribed, the estimated remaining domestic bond scale could be over 5.6 billion yuan, leading to a potential 69% reduction in the domestic bond balance, significantly lowering the company's leverage and facilitating a quicker return to healthy operations [8]. Comparison with Overseas Debt Restructuring - The overseas debt restructuring plan involves approximately 4 billion yuan in debt, utilizing structured debt reduction and legal enforcement mechanisms, with new notes issued at a lower interest rate of 3% [10][14]. - The overseas plan has a more rigid structure, ensuring a one-time resolution of debts, while the domestic plan offers more flexibility and options for creditors [14].

Financing Overview - In July 2025, the total bond financing in the real estate sector reached 71.39 billion yuan, marking a year-on-year increase of 90.3% [1] - The structure of financing shows that credit bond financing accounted for 45.65 billion yuan, up 104.8% year-on-year, representing 64.0% of the total; ABS financing was 25.74 billion yuan, up 90.0%, making up 36.0% [1] - The average bond financing interest rate was 2.54%, down 0.24 percentage points year-on-year and 0.51 percentage points month-on-month [1][6] Credit Bond Issuance - Credit bond issuance saw significant growth, with major issuers including state-owned enterprises such as Jinmao, Poly Developments, and China Resources, each issuing over 3 billion yuan [3] - Private and mixed-ownership enterprises like Greentown, Binjiang, and Xincheng successfully issued credit bonds totaling approximately 3.01 billion yuan, with maturities exceeding three years [3] - The average maturity of issued credit bonds was 3.79 years, indicating a trend towards longer-term financing [3] ABS Issuance - The ABS issuance scale reached 25.74 billion yuan, showing substantial growth compared to the previous month [4] - CMBS/CMBN products dominated the issuance, accounting for 41.5%, followed by REITs at 36.8% [4] - The Shenzhen Anju rental housing second-phase asset-backed special plan was successfully established with an issuance scale of 3.876 billion yuan, featuring a yield of 2.15% [4] Financing Costs - The average interest rate for bond financing was 2.54%, reflecting a decrease both year-on-year and month-on-month [6] - The average interest rate for credit bonds was 2.32%, down 0.21 percentage points year-on-year, while ABS had an average rate of 2.92%, down 0.11 percentage points [6] Key Corporate Financing Activities - Jinmao had the highest issuance amount in July, reaching 4 billion yuan, while China Merchants Shekou had the lowest financing cost at 1.70% [7] - Major real estate companies disclosed new financing activities, including China Resources Land securing a 2 billion yuan loan and Vanke receiving 1.681 billion yuan from its major shareholder [9] - Doyou City Real Estate is planning to go private, citing reasons such as improving governance efficiency and addressing liquidity issues [9]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 自刊發本公司截至2024年12月31日止財政年度年報中披露本公司已取得位於塞班島的一間酒 店及中國太原市的一個住宅物業項目的裝修及室內裝飾工程（合約總金額約為人民幣 182,685,882元）後，本公司再取得7個中國酒店及娛樂場所的裝修及室內裝飾以及設計項目 （合約總金額約為人民幣84,442,288元）。塞班島及太原市的項目已開始施工，截至本公告日 期仍在進行中。 WenyeGroupHoldingsLimited 文業集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號﹕1802） 有關實施處理不發表意見行動計劃 的季度最新情況 茲提述(i)本公司日期為2024年1月2日的公告（「達成復牌指引公告」），內容有關（其中包 括）本公司為處理截至2022年12月31日止兩個財政年度全年業績中對持續經營作出不發表意 見（「不發表意見」）的行動計劃，(ii)本公司截至2024年12月31日止兩個財政年 ...

1. Report Industry Investment Rating No information about the report industry investment rating is provided in the content. 2. Core View of the Report In July 2025, the net financing scale of Chinese - funded US dollar bonds in the primary market was negative, with the issuance mainly being unrated bonds. The total issuance scale increased significantly compared to the previous month and the same period last year, mainly due to Shimao Group Holdings Co., Ltd. issuing new bonds for debt restructuring. Most of the main sectors had positive net financing, with real - estate US dollar bonds being the main force in issuance [1][7]. 3. Summary According to the Directory (1) 7月中资美元债净融资规模为负，发行以无评级为主 - As of July 31, 2025, 85 new Chinese - funded US dollar bonds were issued in the primary market, mainly real - estate US dollar bonds, with a total issuance scale of $19.387 billion, a 55% month - on - month and 27% year - on - year increase. The average issuance coupon rate was 3.79%. 98 bonds matured, with a maturity scale of $20.017 billion. The net financing scale for the month was - $629 million. The significant increase in issuance scale was mainly due to Shimao Group issuing $11.734 billion in new bonds for debt restructuring [1][7]. - In terms of different ratings, 2 investment - grade bonds were newly issued, with a scale of $744 million; 13 matured, with a scale of $5.55 billion, and the net financing scale was - $4.806 billion. No high - yield bonds were newly issued, 5 matured, with a scale of $1.6 billion, and the net financing scale was - $1.6 billion. 83 unrated bonds were newly issued, with a scale of $18.643 billion; 80 matured, with a scale of $12.867 billion, and the net financing scale was $5.777 billion [2][12][14]. (2) 主要板块净融资规模多数为正，地产美元债为发行主力 - Real - estate US dollar bonds: As of July 31, 2025, 6 new bonds were issued, with a scale of $11.734 billion, an average issuance coupon rate of 2.17%. All were new bonds issued by Shimao Group for debt restructuring. 11 bonds matured, with a scale of $4.419 billion. The net financing scale for the month was $7.314 billion, and no material defaults occurred [3][18]. - Financial US dollar bonds: As of July 31, 2025, 55 new bonds were issued, with a scale of $3.789 billion, an average issuance coupon rate of 2.98%. 55 bonds matured, with a scale of $5.669 billion. The net financing scale for the month was - $1.88 billion, and no material defaults occurred [3][27]. - Urban investment US dollar bonds: As of July 31, 2025, 12 new bonds were issued, with a scale of $1.725 billion, an average issuance coupon rate of 5.74%. 12 bonds matured, with a scale of $1.198 billion. The net financing scale for the month was $527 million, and no material defaults occurred [3][34].

Core Viewpoint - The real estate industry in China is experiencing significant growth in bond financing, with a total of 71.39 billion yuan in July 2025, marking a year-on-year increase of 90.3% due to a low base effect from the previous year [1] Financing Overview - The total bond financing in the real estate sector reached 71.39 billion yuan in July 2025, with a year-on-year growth of 90.3% [1] - From May to July, the monthly financing totals have consistently increased [1] - The financing structure shows that credit bond financing accounted for 45.65 billion yuan, up 104.8% year-on-year, representing 64.0% of the total, while ABS financing was 25.74 billion yuan, up 90.0%, making up 36.0% [1] Interest Rates - The average bond financing interest rate in July was 2.54%, down 0.24 percentage points year-on-year and down 0.51 percentage points month-on-month [6] - The average interest rate for credit bonds was 2.32%, a year-on-year decrease of 0.21 percentage points, while ABS had an average rate of 2.92%, down 0.11 percentage points year-on-year [6] Major Issuers - Major issuers of credit bonds in July included state-owned enterprises such as Jinmao, Poly Developments, and China Resources, with Jinmao issuing the highest amount at 4 billion yuan [3][6] - Private and mixed-ownership enterprises like Greentown, Binjiang, and New Town successfully issued credit bonds totaling approximately 3.01 billion yuan [3] ABS Market - The ABS issuance scale reached 25.74 billion yuan in July, showing significant growth compared to previous months [4] - CMBS/CMBN products dominated the ABS market with a 41.5% share, followed by REITs at 36.8% [4] Capital Market Dynamics - Key real estate companies have disclosed new financing, including China Resources Land securing a 2 billion yuan loan and Vanke receiving 1.681 billion yuan from its major shareholder [9] - Several companies are undergoing debt restructuring, with over ten firms having their plans approved, involving a total debt of approximately 1 trillion yuan [9]

Core Viewpoint - The company, Oriental Yuhong, is actively pursuing overseas expansion while simultaneously managing debt recovery in response to underwhelming domestic market performance [1][4]. Group 1: Acquisition Details - Oriental Yuhong announced plans to acquire 100% of Chilean company Construmart S.A. for 880 million RMB, with the acquisition pending necessary approvals [1]. - Construmart reported revenues of approximately 2.82 trillion Chilean Pesos (around 2.09 billion RMB) and a net profit of 476.6 billion Chilean Pesos (approximately 35 million RMB) for 2024 [1]. - The acquisition is expected to leverage synergies in brand, research and development, supply chain, and cost control [3]. Group 2: Financial Performance - In 2024, Oriental Yuhong's revenue decreased by 14.52% to 28.06 billion RMB, with net profit dropping by 95.24% to 108 million RMB [5]. - For the first half of 2025, the company reported a revenue decline of 10.84% to 13.57 billion RMB and a net profit decrease of 40.16% to 564 million RMB [5]. - The core business of waterproof materials saw a revenue drop of 12.48%, reflecting challenges in the downstream real estate sector [5]. Group 3: Debt Recovery Efforts - The company is accelerating debt recovery from downstream real estate firms, with a total of approximately 839 million RMB in receivables being settled through asset exchanges [7]. - The total liabilities of Oriental Yuhong reached about 20.95 billion RMB, with an asset-liability ratio of 47.55% [8]. Group 4: International Expansion - Oriental Yuhong has been expanding its international presence since 2005, with ongoing projects in Saudi Arabia, Canada, and Malaysia [8]. - The company achieved overseas revenue of 576 million RMB in the first half of 2025, marking a 42.16% increase year-on-year [9]. Group 5: New Business Ventures - The company has acquired mining rights for marble in Jiangxi Province, aiming to enter the marble slab and calcium carbonate industries [9]. - However, the marble slab industry is facing significant competition, with a reported 18.6% decline in production in 2024 [10]. Group 6: Dividend Policy - Despite declining revenues and profits, Oriental Yuhong announced a cash dividend of 9.25 RMB per 10 shares, totaling approximately 2.21 billion RMB [12]. - The dividend is intended to provide timely returns to investors, although it has raised concerns regarding the financial health of the company and its controlling shareholder [13].

Core Insights - The discussion focuses on the current state of land finance in China, the need for land reform, and the transformation of the real estate sector, emphasizing the shift from expansion to quality improvement in urban development [2][5][37] Land Finance and Reform - The traditional model of land finance, which relied on large-scale land acquisition and low-priced industrial land supply, is no longer sustainable, necessitating a shift towards optimizing existing land resources [5][12] - The central government has indicated a transition from extensive urban expansion to enhancing the quality and efficiency of existing land use, addressing long-standing issues in urban governance and population mobility [5][37] Solutions Proposed - Professor Tao proposed three key solutions to address the inefficiencies in land use: revitalizing underutilized industrial land, promoting urban village redevelopment, and meeting the demand for improved housing [2][3][47] - The suggestion includes a policy where landowners could transfer a significant portion of their low-efficiency industrial land to the government for redevelopment into residential areas, which would help provide affordable housing for migrant workers [50][51] Debt and Financial Management - Local governments have accumulated significant debt, with total liabilities exceeding 100 trillion yuan, leading to challenges in debt repayment and fiscal sustainability [17][19] - The discussion highlights the need for a national debt restructuring to alleviate the financial burden on local governments, allowing them to focus on essential public services rather than new construction projects [21][22] Real Estate Market Dynamics - The real estate market has seen a shift, with developers like Country Garden and Evergrande heavily investing in third and fourth-tier cities during favorable policy conditions, leading to over-leveraging and subsequent financial difficulties [30][31] - The current market environment poses challenges for real estate companies, as previous successful strategies may no longer be viable due to changing policies and market conditions [32][36] Urbanization and Population Trends - The future of urbanization in China is expected to focus on major metropolitan areas, with a need to address the housing and integration issues faced by migrant workers in these cities [37][40] - The discussion emphasizes the importance of creating conditions for migrant workers to settle in cities, which would enhance their willingness to invest in housing and contribute to urban development [54][56]

Sales Performance - In July, Sunac China achieved a contract sales amount of approximately 1.53 billion yuan, with a contract sales area of about 71,000 square meters and an average contract sales price of approximately 21,550 yuan per square meter [2] - As of July 2025, the cumulative contract sales amount reached approximately 25.08 billion yuan, with a cumulative contract sales area of about 792,000 square meters and an average contract sales price of approximately 31,670 yuan per square meter [2] Debt Restructuring - Sunac China announced a debt restructuring plan for its domestic bonds, which was approved by relevant bondholders. The plan includes options for bond buyback, equity compensation, and debt-for-equity swaps [2] - In April 2025, the company repurchased approximately 4 billion yuan of domestic bonds for about 800 million yuan under the buyback option [2] Share Issuance - To facilitate the orderly implementation of the stock option in the debt restructuring, the company entered into a subscription agreement with a special purpose company on July 3, 2025, to issue a total of 754,468,943 shares, representing about 7.04% of the current issued share capital [3] - The net proceeds from the disposal of these shares will be used to repay approximately 5.588 billion yuan of related domestic bonds, and the issuance is expected to alleviate the company's liquidity pressure and improve its financial condition [3] - Following the share issuance, the chairman's shareholding will decrease from 25.59% to 23.9% [3]