Core Viewpoint - South China City has been ordered to be liquidated by the High Court, marking it as another major real estate company facing liquidation after Evergrande [1][2] Financial Situation - As of the end of 2024, South China City reported cash on hand of only 37.43 million yuan, while short-term interest-bearing liabilities reached 16.596 billion yuan [2] - The company's total market value is approximately 1.2 billion yuan, significantly lower than its total liabilities of 55.447 billion yuan [2] - The company recorded a net loss of 8.976 billion HKD for the year ending December 31, 2024, with current liabilities exceeding current assets by 2.848 billion HKD [2] Debt Issues - Citigroup filed for liquidation against South China City in the High Court, primarily related to a USD bond due in April 2024, with an outstanding amount of 306 million USD [2] - As of December 31, 2024, 15.742 billion HKD of interest-bearing debt principal or interest was not repaid on the due date, triggering cross-default on 375 million HKD of debt [2] Shareholder Impact - Tencent, as the third-largest shareholder with an 8.35% stake, faces significant investment losses, having invested a total of 2.3225 billion HKD in South China City since 2014 [3][4] - The liquidation process may leave little to no residual value for shareholders due to the large scale of the company's debts [3] Business Model and Challenges - South China City initially operated as a non-typical real estate company, focusing on comprehensive commercial logistics centers, but faced challenges as the e-commerce landscape evolved [5][6] - The company attempted to pivot towards e-commerce by establishing an industrial park in 2012 and partnering with Tencent in 2014, but ultimately struggled with merchant attrition and store vacancies [6]

Core Asset Judicial Auction - The core asset of the company, Shenzhen Huangting Plaza, will be judicially auctioned on September 9-10, 2025, with a starting price of 3.053 billion yuan [3] - As of the end of 2024, Shenzhen Huangting Plaza has a book value of 5.75 billion yuan, accounting for 71.57% of the company's total assets, and generated revenue of 369 million yuan, representing 56.03% of the company's total revenue for that year [3] Debt Issues and Legal Proceedings - The judicial auction is a result of a significant loan taken by the company's subsidiary,融发投资, in 2016, amounting to 3 billion yuan, which was secured by Shenzhen Huangting Plaza and its land use rights [5] - Due to policy changes, the loan could not be renewed in 2021, leading to a lawsuit from the lender, 中信信托, after融发投资 failed to repay the loan [5] - In March 2024, the company received an execution notice from the Shenzhen Intermediate People's Court, and a friendly negotiation was held to ensure monthly payments to the lender while maintaining the operation of Shenzhen Huangting Plaza [5] Debt Restructuring Efforts - The company has been considering debt restructuring to separate融发投资 from its financial troubles, but no substantial progress has been made [8] - In 2022, the company attempted to sell at least 51% of融发投资's equity but failed to attract any valid purchase intentions despite multiple price reductions [9] - A framework agreement was reached with a potential buyer, 丰翰益港, in November 2022, but specific details for the debt restructuring have yet to be finalized [10] Financial Performance - The company has faced continuous losses since 2020, with an expected loss of 140 million to 200 million yuan for the first half of the current year [10] - The losses are attributed to increased financing costs due to litigation related to previous loans and a decline in operating income due to the termination of some property business contracts [10]

Core Viewpoint - Oriental Yuhong has been criticized by regulatory authorities due to violations by its senior management, specifically regarding the misuse of company funds and inadequate financial disclosures [1][2]. Group 1: Regulatory Actions - The Shenzhen Stock Exchange announced a public reprimand against Oriental Yuhong for the misuse of funds by its actual controller and chairman, Li Weiguo, who occupied a total of 69.5 million yuan in non-operating funds from February 2023 to May 2024 [1]. - The Beijing Securities Regulatory Bureau issued a warning letter to Oriental Yuhong, highlighting issues in financial accounting practices, including inaccurate revenue recognition and improper handling of accounts receivable [2]. Group 2: Financial Performance - In the first half of 2025, Oriental Yuhong reported a revenue of 13.569 billion yuan, a decrease of 10.84% compared to the same period last year, and a net profit attributable to shareholders of 564 million yuan, down 40.16% year-on-year [2]. Group 3: Debt Restructuring - Oriental Yuhong is undergoing a debt restructuring process due to some clients' inability to repay debts in cash, involving the acquisition of various assets as compensation for outstanding payments [3]. - The total book value of the debts involved in the restructuring is approximately 840 million yuan, with specific asset values detailed for real estate and equity [3].

Group 1 - The core point of the news is that South China City Holdings Limited has been ordered into liquidation by the Hong Kong court, marking it as the largest liquidation case in the real estate sector since China Evergrande Group [1] - South China City Holdings' shares were suspended from trading at a price of HKD 0.107 per share, with a market capitalization of HKD 1.224 billion prior to the suspension [1] - The company has faced significant challenges in obtaining sufficient creditor support for its restructuring plan after months of negotiations [1] Group 2 - In December 2023, South China City announced that it was experiencing severe cash flow issues due to the deteriorating operating environment in the real estate industry, with USD 1.199 billion in dollar bonds maturing in 2024 [2] - The company reported its first significant loss since listing, with total liabilities amounting to approximately HKD 60.9 billion as of the end of last year [2] - As of last year, South China City had current liabilities exceeding current assets by HKD 2.848 billion, with overdue borrowings totaling HKD 15.742 billion [2]

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].