China Olympic Park announced on the Hong Kong Stock Exchange on January 19 that in 2021, the Group recorded an unaudited property contract sales amount of about 121.03 billion yuan, a year-on-year decrease of about 9.0%. Although it is difficult for the group to realize inventory and sell assets on reasonable terms, as of the date of this announcement, most of the group’s real estate projects have been carried out according to the plan and progress, and the Group continues to ensure the completion and delivery of the projects and reduce operating expenses. In view of the existing abundant land reserves, the group does not expect any major new land purchases in the foreseeable future, and the group will continue to look for opportunities to release the value of existing urban renewal projects. The company has been actively looking for potential opportunities to sell assets and introduce strategic investors to create liquidity and alleviate or solve debt problems.
As of the date of this announcement, the total outstanding principal of the notes is about US $1086 million, and the company has not received any notice from the trustee or any noteholder, which will advance the maturity date of the notes due to the events described in the December 2021 announcement. After careful consideration of the liquidity situation, in order to retain its limited cash resources and maintain fairness to all creditors for the overall debt restructuring, the company will not pay the remaining principal and the last interest of the notes in January 2022 on the relevant maturity date and interest payment date; And pay the latest interest under the 2023 notes and 2024 notes after the expiration of the applicable 30 day grace period. The Group intends to adopt the same principle for other overseas financial liabilities, and events of default will occur (or have occurred) under all other overseas financial liabilities of the group.
The company has specially appointed independent financial consultant experts to conduct in-depth due diligence on the operation of the group, so as to provide a basis for formulating the best restructuring plan. As of the announcement date, external professional consultants have made significant progress in evaluation and due diligence.
