CIFI Holdings Group (00884) has announced a new step in its domestic bond restructuring, following approval from relevant bondholder meetings. The plan involves allocating shares to settle outstanding obligations, with the company set to issue a total of 407,937,848 new shares to clear approximately RMB 600 million in debt.

Under the approved restructuring scheme, CIFI Holdings Group (00884) will allow domestic bondholders to choose from several options based on the value of their holdings, including bond buyback, stock economic benefit rights, asset-for-debt swaps, and general claims. Bondholders who do not select any of these options will automatically be placed into a long-term extension plan with full debt retention.

In line with the bond buyback option, CIFI Holdings Group (00884) repurchased and cancelled domestic bonds with a principal amount of approximately RMB 1.1 billion in December 2025, at a total cost of about RMB 220 million. For the stock option, holders of every RMB 100 in face value of domestic bonds are entitled to receive an amount equal to the net proceeds from the disposal of 68 corresponding shares, as outlined in the restructuring terms.

As of the date of this announcement, domestic bonds with a principal amount of roughly RMB 600 million have been selected and approved for participation in the stock option. To facilitate the orderly implementation of this option, CIFI Holdings Group (00884) entered into a subscription agreement with a special purpose vehicle (SPV) on August 18, 2026. Under this agreement, the SPV has conditionally agreed to subscribe for, and the company has conditionally agreed to allot and issue, a total of 407,937,848 shares.

The net proceeds from the SPV's disposal of these shares, equivalent in domestic funds, will be used to repay and cancel the relevant domestic bonds held by bondholders who opted for the stock option, totalling approximately RMB 600 million. This share issuance is designed purely to support the smooth execution of the stock option within the broader domestic bond restructuring framework.

Importantly, CIFI Holdings Group (00884) will not receive any cash proceeds from this share issuance. However, the company expects that the debt settlement of roughly RMB 600 million through this mechanism will help ease liquidity pressures, reduce its overall debt burden, and improve its financial position, contributing to the group's long-term business recovery.