Financial Services Association, April 22 (Reporter Wang Haichun) Due to liquidity pressure, there was a problem with the payment of an extended US dollar bond by Landsea Green Management.

Landsea Green Management recently disclosed that due to the company's current liquidity pressure, the company was unable to pay the amount related to the 2022 note on April 20, 2024, which may cause creditors to demand faster repayment.

According to information, Landsea Green Management issued this senior note in October 2022, with an initial principal amount of about US$119 million, which expires on October 20, 2024. The note was listed on the Singapore Exchange in 2022, and interest is paid semi-annually at 10.75% per year.

Currently, the remaining outstanding principal amount of the note is approximately US$96.14 million. According to the terms of the bill, Landsea Green Management shall redeem at least 30% of the principal amount of the 2022 note at a redemption price of 100% of the principal amount of the 2022 note on April 20, 2024, along with accrued unpaid interest.

According to information, the bonds mentioned above have already been extended once.

According to public information, Landsea Green Management issued a note with a total principal amount of US$200 million on January 21, 2020, which expires on October 21, 2022. In September 2022, Landsea Green Management issued an announcement on the 10.75% senior note exchange offer due in 2022. The debt period was extended through an exchange offer; the new notes are paid every six months, and the due date is October 20, 2024.

Regarding the difficulties in paying the bonds as scheduled, a person close to Landsea Green Management told reporters that due to the current state of the entire industry, the number of pre-sales of houses and pre-sale proceeds have been drastically reduced, and the company is facing liquidity pressure.

“The asset-light business accounts for a large proportion of the company's current business structure, and the scale of the development business is already small. On the one hand, due to continuous market adjustments, the continued asset-heavy business is under pressure. On the other hand, in our asset-light construction business, some project partners have also delayed payment of some expenses due to pressure on sales performance, which also had an impact on our cash flow; taken together, it can be difficult to complete payment matters related to this bond as scheduled. “The person mentioned above said.

It further stated that the company's operations and project operations are currently all normal. Currently, the company's foreign debt is only this amount. Doing so does not mean that the company is lying flat; instead, it must focus its main resources on securing delivery, and at the same time speed up the stability of property sales and business operations.

“The Company has formulated a number of plans and measures to reduce the pressure on the company's liquidity and improve its financial situation, including but not limited to actively adjusting sales and pre-sale activities to better respond to market demand. Furthermore, the Company is discussing with ticket holders, closely monitoring the situation and considering all possible actions, including but not limited to formulating comprehensive debt management solutions for the company's related debts and appointing financial and legal advisors to assist the company in carrying out related work.” Landsea Green Management said.

In terms of performance, according to the company's 2023 annual results, during the reporting period, Landsea signed sales of about 18.39 billion yuan, operating income of 9.04 billion yuan, gross profit of 1.11 billion yuan; additional contract amount for development and construction services was about 460 million yuan. During the reporting period, Landsea added a saleable value of about 29.29 billion yuan. As of December 31, 2023, the company's remaining saleable value was about 141.32 billion yuan.