Group 1 - CIFI Group announced overdue debts totaling 1,043.63 million yuan as of September 2, 2025, involving multiple subsidiaries [2] - The overdue debts are primarily related to bank project loans from various subsidiaries including Six Android Jin Real Estate Development Co., Ltd. and others [2] - The company has successfully passed bond restructuring proposals for several of its existing credit bonds through bondholder meetings [2] Group 2 - The company has exempted cross-default clauses or related default statements for all its existing credit bonds [2] - CIFI Group is closely monitoring the situation and will take proactive measures to mitigate any adverse effects on its operations and debt repayment capacity [2]

Core Viewpoint - Country Garden is seeking to extend the maturity of its bond "16 Bi Yuan 05" due to debt pressure, marking its first attempt to extend a bond under current financial strain [1][2]. Group 1: Bond Extension Details - The bond "16 Bi Yuan 05" has a current balance of 3.904 billion yuan and is set to mature on September 2, 2023 [1]. - The proposed extension plan involves a three-year maturity extension with seven repayment installments, starting with 6% of the principal in the first three months post-maturity [1]. - The repayment schedule includes 10% in September 2024, 15% in September 2025, 25% in March 2026, and 44% in September 2026 [1]. Group 2: Risk Mitigation and Investor Confidence - Unlike other real estate companies that have deferred interest payments, Country Garden plans to fully transfer accrued unpaid interest from September 2, 2022, to September 1, 2023, on September 1, 2023 [2]. - The company will also pledge equity rights from several project companies as collateral to enhance creditworthiness [2]. - Analysts note that the extension plan is characterized by a cautious approach, reducing the risk of further extensions and aligning with the company's sustainable development strategy [2][3]. Group 3: Operational Context and Future Outlook - Country Garden has delivered nearly 700,000 homes in 2022 and the first half of 2023, with an estimated 400,000 homes to be delivered in the second half of 2023 [3]. - The company’s regulatory account balance and receivables from sold properties are expected to cover future delivery obligations, although cash flow is tightly managed [3]. - The company must prioritize project delivery to unlock funds from regulatory accounts, which will then be available for debt repayment [4].

Report Industry Investment Rating No relevant content provided. Report's Core View - In Q2 2025, the overall default rate of credit bonds showed a downward trend, with a new first - time defaulting entity. The default repayment rate was stable with a slight increase, mainly driven by Sunac's repayment. There were 20 newly - added default bonds, mostly in the real - estate industry with many secondary extensions. The number of urban investment non - standard risk events decreased, while the number of commercial paper overdue entities remained high. Two hot credit events were the failure of AVIC Industry Finance's off - site repayment plan and the extension of a Zhejiang construction private enterprise's debt [2][4][14]. Summary According to the Table of Contents 1. Q2 2025: Overall Default Rate Continued to Decline, Repayment Rate Showed No Obvious Increase (1) Bond Default Rate - The overall default rate of credit bonds declined. There was one new first - time defaulting entity, Xinjie Investment Holding Group Co., Ltd. The default scale in Q2 was 5.938 billion yuan, and the default rates from April to June were 1.02%, 1.02%, and 1.00% respectively, showing a downward trend. The default rate of private - enterprise credit bonds also decreased, with the default amounts from April to June being 4.588 billion yuan, 1.35 billion yuan, and 0 yuan respectively, and the default rates being 9.02%, 9.00%, and 8.92% respectively, lower than that in Q1 [14]. (2) Default Repayment Rate - The cumulative default repayment rate in Q2 2025 was stable with a slight increase. The repayment rate in April was higher than that in the previous quarter, mainly due to Sunac's repayment. The principal repayment scale in Q2 increased compared with the previous quarter, with the repayment amounts from April to June being 3.561 billion yuan, 0.266 billion yuan, and 0.016 billion yuan respectively. Sunac had the largest repayment amount, reaching 3.247 billion yuan in Q2, with a repayment progress of 29%. Many real - estate enterprises were promoting debt restructuring, but the cash repayment for investors was limited [20][24][25]. (3) Credit Event Statistics - In Q2 2025, there were 20 newly - added default bonds in domestic bonds, with a total balance of 14.049 billion yuan. Among them, 18 bonds reached extensions, mostly secondary extensions of real - estate industry bonds, and 2 bonds had substantial defaults. Other industries involved included communication equipment, non - bank finance, and medical [28]. (4) Urban Investment舆情 - The number of urban investment non - standard risk events decreased by 12 from Q1 to Q2 2025, mainly distributed in Shandong. In terms of administrative levels, district - level and prefecture - level entities accounted for 86% and 14% respectively. The number of urban investment commercial paper overdue entities remained high, with 57, 55, and 56 entities in April, May, and June respectively, mainly distributed in Shandong and Yunnan [31][33]. 2. Hotspot Analysis: AVIC Industry Finance's Off - site Repayment Plan Rejected, Zhejiang Construction Private Enterprise's Debt Extension (1) AVIC Industry Finance - AVIC Industry Finance planned to transfer off - site for orderly repayment but was not approved by the bondholders' meeting. Its stock was delisted, and it failed to disclose its 2024 annual report. As of July 23, 2025, it had 19 outstanding bonds, with a domestic bond balance of 20.47 billion yuan and overseas bonds of 300 million US dollars. With the support of AVIC Industry Group and its own equity assets that can be realized, the bond default risk was relatively controllable [39][40][49]. (2) Xinjie Holdings - Xinjie Holdings is a Zhejiang private construction enterprise. Its only outstanding bond, "23 Xinjie 01", with a balance of 350 million yuan, had its interest payment and maturity dates extended. The company's construction business income has been declining for three years, and it faces risks such as shrinking housing construction business, large asset restrictions, concentrated short - term debt repayment pressure, and increased guarantee compensation pressure [53][58][59].