CIFI Holdings (Group) Co (884) Status Update summary

Leadership vision and business transformation

• Apologies were made for past risk management failures, with a commitment to reform and resilience in operations.

• Emphasis on completing onshore and offshore debt restructuring to improve capital structure and avoid insolvency.

• Shift from high leverage and high turnover to a sustainable model focused on low debt, light assets, and high-quality premium residential projects.

• Future strategy centers on rental business, focused self-developed projects in core cities, and asset management with a dual GP structure.

• Five core strategies include regional focus, premium products, value chain creation, operational efficiency, and steady operations.

Financial and operational status

• Shareholders' equity exceeded RMB 10 billion by end-2024, with a land bank valued at RMB 130 billion in key cities.

• Investment properties valued at RMB 46 billion generated RMB 1.8 billion in rental income in 2024, up 10% year-on-year.

• Interest-bearing liabilities reduced to RMB 86.6 billion, down 30% from peak, with 70% being unsecured debt.

• Onshore and offshore restructuring efforts are aligned, with offshore restructuring milestones achieved and onshore bond restructuring underway.

• Post-restructuring, unsecured debts expected to fall by over 50% to below RMB 30 billion, with extended tenors and lower interest rates.

Offshore restructuring plan and options

• Offshore debt restructuring covers $6.8 billion in principal, including bonds and loans, with nearly 90% creditor support for the RSA.

• Multiple options offered: short-term new bonds/loans, debt-to-equity conversion via mandatory convertible bonds, principal preservation with long-term notes/loans, and mixed options.

• Debt-to-equity conversion options (2A/2B) provide flexibility and potential equity upside for creditors.

• Credit enhancement measures include support from offshore and onshore assets, and shareholder loan conversion into equity.

• Voting deadlines are set for late May, with the scheme meeting on June 3 and sanction hearing on June 26.