CHINA AOYUAN's property contract sales in the first six months amounted to approximately 4.02 billion yuan, with a domestic loan of 1.014 billion yuan extended

CHINA AOYUAN (03883.HK) announced that the group is actively promoting a comprehensive restructuring of its domestic debt to establish a long-term mechanism to alleviate debt pressure and strengthen the risk control system for cash flow throughout the cycle, ensuring the operational safety of the group. Currently, the domestic debt restructuring plan has been basically completed and is seeking opinions from all parties (including domestic creditors).

The announcement further stated that the group has been actively negotiating with various domestic lenders for the renewal and extension of loans. In the first six months of 2025, the group reached contractual arrangements with several domestic financial institutions, extending existing domestic financing arrangements with a principal amount of approximately RMB 1.014 billion.

In the first six months of 2025, the group's property contract sales amounted to approximately RMB 4.02 billion, with a contract sales area of about 436,200 square meters; the total number of employees has been reduced by approximately 28%, and the organizational structure has been streamlined by reducing two regional companies. The group continues to implement measures to accelerate the pre-sale and sale of properties under development and completed properties.

In the first six months of 2025, the group has reached three litigation settlements with business partners regarding overdue or unpaid operating payables, bank loans, and other borrowings. The group will continue to strive for amicable settlements with creditors and will continue to actively explore potential asset sale opportunities