Core Viewpoint - South China City (01668.HK) has been ordered into liquidation by the High Court due to failure to reach a debt restructuring agreement, primarily concerning a USD 306 million debt maturing in April 2024 [1][2]. Financial Performance - For the fiscal year 2024, South China City reported a significant net loss of HKD 8.986 billion, marking its first major loss since going public [2]. - The company has defaulted on HKD 15.742 billion in borrowings, with cash and cash equivalents at only HKD 41.14 million, insufficient to cover its debts [2]. - Total assets as of the end of 2024 were HKD 87.551 billion, while total liabilities stood at approximately HKD 60.944 billion, indicating a precarious financial position [5]. Debt and Liabilities - The company’s interest-bearing debt amounted to HKD 30.22 billion, with HKD 18.241 billion due in the short term [2]. - Current liabilities exceeded current assets by HKD 2.848 billion, highlighting liquidity issues [2]. Audit Concerns - Ernst & Young expressed an inability to provide an opinion on the financial statements, citing significant doubts about the company's ability to continue as a going concern [4]. Shareholder Dynamics - In 2022, Shenzhen Special Zone Construction Development Group became the largest shareholder after investing HKD 1.9095 billion for a 29.28% stake [6]. - The strategic investor has provided multiple rounds of financial support to South China City, including a debt extension agreement in July 2022 [6]. Market Position - As of the latest report, South China City's stock price was HKD 0.107 per share, with a market capitalization of approximately HKD 1.22 billion, significantly lower than the initial investment by its major shareholder [7].