COUNTRY GARDEN (HK2007) announced on the Hong Kong Stock Exchange on the evening of February 10 that the company, along with its Executive Director and Chairperson Yang Huiyan, Executive Director and Co-Chairman Mo Bin, and Executive Director and Chief Financial Officer Wu Bijun, recently received a "Disciplinary Decision" issued by the Shanghai Stock Exchange. The notice was issued because the company failed to promptly disclose its debt default situations occurring from August to December 2023, January to June 2024, and July to December 2024, as required by the relevant bond listing rules of the exchange. Consequently, the Shanghai Stock Exchange decided to take self-regulatory measures against the company, Ms. Yang, Mr. Mo, Ms. Wu, and other named individuals, issuing a criticism against them and recording the action in their integrity files.

The board of directors (excluding Ms. Yang, Mr. Mo, and Ms. Wu) believes there is no reason to question the integrity and capability of Ms. Yang, Mr. Mo, and Ms. Wu, as the relevant violations were due to the company's failure to disclose the debt defaults in a timely manner for objective reasons, not due to any negligence in performing their duties by the individuals involved. Therefore, the board considers it appropriate for Ms. Yang, Mr. Mo, and Ms. Wu to continue serving as executive directors of the company.

On February 2, COUNTRY GARDEN Group held its annual work conference. In 2025, the company completed the delivery of nearly 170,000 housing units. The restructuring plans for nine onshore bonds, with a total value of approximately 13.77 billion yuan, were all approved, leading to an estimated overall debt reduction of nearly 90 billion yuan. Following the restructuring, the financing cost for the new debt dropped sharply to a range of 1% to 2.5%.

COUNTRY GARDEN's Board Chairperson Yang Huiyan has defined 2026 as the "final year for ensuring housing delivery" and proposed a clear timeline, aiming to complete the majority of the delivery tasks by mid-2026. This would free up more resources to repair the balance sheet and restore normal operations. A key indicator of returning to normal operations is achieving positive operating cash flow, with the ultimate goal being positive overall cash flow and profitability for the company.