On September 11th, according to Cailian Press, Country Garden transferred three real estate properties in Shanghai to D&O Home Collection Group. Regarding this, Country Garden expressed that this move is not only to pay off debts with assets but also to promote the progress of the company's delivery obligations.

Country Garden Group announced that its subsidiary, Shanghai Birong Investment Management Co., Ltd., signed an agreement with D&O Group's subsidiary, Foshan Oushennuo Ceramics Co., Ltd., to fully offset Oushennuo's payable loan of 0.423 billion by the equity of Xiangyu Hong's project in Hainan, and the transaction has been completed.

"Through this transaction, the company has obtained part of the ceramic tile supplies needed for the delivery of the projects in the relevant areas. Currently, the company is actively trying to revitalize various types of assets and fulfill the delivery obligations to the best of its ability." This is what Country Garden said.

On September 9th, D&O Home Collection Group disclosed that its wholly-owned subsidiary, Foshan Oushennuo Ceramics Co., Ltd., signed an agreement with Country Garden. D&O Home Collection Group acquired three real estate properties held by Birong Investment through the acquisition of 100% equity and debt rights of Bihu Property.

Among the total transaction price of 0.423 billion yuan, the equity transfer payment that Oushennuo should pay is 0.157 billion yuan, and the debt transfer payment is 0.266 billion yuan. Oushennuo used the debt of 0.423 billion yuan that it has the right to pay the sale of goods to Country Garden and its affiliated companies as the payment for this transaction. At the same time, Oushennuo agreed to waive the debt of 57.1187 million yuan owed by Country Garden and its affiliated companies for the purchase debt. The waived debt is not within the scope of the 0.423 billion yuan debt involved in the equity transfer mentioned above.

In fact, the completion of this transaction has gone through a long period of time.

Regarding D&O Group's acceptance of non-cash assets as debts, the company stated that starting from 2023, based on the volatility of the real estate market, it has strengthened the risk prevention and management of its engineering clients including Country Garden. "Given that Country Garden is an important engineering client for the company, the company closely monitors changes in the real estate industry and Country Garden's operations and payment status."

In the fourth quarter of 2023, D&O Home Collection Group launched comprehensive risk control measures, urging Country Garden Group to quickly repay cash, and actively negotiating with them to find suitable assets for debt counterbalance, actively promoting the settlement of company debt through assets counterbalance matters.

According to the information disclosed by D&O Home Collection Group, in December 2023, Oushennuo signed a debt compensation framework agreement with its subsidiary, Birong Investment, and Shanghai Sizhi Real Estate Co., Ltd., a subsidiary of Country Garden Group. The framework agreement stipulates that Country Garden Group will coordinate the repayment of the 0.64 billion yuan purchase payment owed by Birong Investment and Sizhi Real Estate to Oushennuo. Oushennuo will accept the compensation of 0.64 billion yuan debt from Sizhi Real Estate by acquiring the equity of Sizhi Real Estate.

It is understood that Bipu Real Estate has recently completed the business registration procedures for change, issued a new business license on September 9, 2024, and Oushennuo has become the sole shareholder of Bipu Real Estate with a 100% shareholding.

"The debt compensation assets obtained by the company may be affected by the cyclical fluctuations of the real estate market or other uncertainties that may affect the value of the assets. After the risk control team established by the company obtains debt compensation assets, it will realize the capital through rental and mortgage financing based on the actual operating situation of the assets, increasing the company's cash reserve," said D&O Home Collection Group.

As the other party in this transaction, Country Garden, according to relevant insiders, stated that delivering houses on schedule is the top priority of the company at present, and maintaining good cooperation and communication with upstream and downstream enterprises is an important prerequisite for achieving this goal.

At the monthly management meeting held by Country Garden in August, Yang Huiyan, Chairman of the Board of Directors of Country Garden Group, emphasized that the task of delivering houses on schedule in the second half of the year is still arduous, but the group attaches great importance to it and is determined. "To ensure the completion of the delivery task, we need to increase sales efforts and activate assets in the second half of the year."

At this meeting, Mo Bin, President of Country Garden Group, pointed out that every possible means should be exhausted to fully complete the task of delivering houses on schedule. Each region and project of the group should develop practical implementation plans and make every effort to complete the task. "At the same time, we should make good use of various resources such as existing houses and land, actively seek the understanding and support of local governments and stakeholders, and effectively do a good job in delivering houses on schedule."

According to the information released by Country Garden, from January to June this year, the company has delivered a total of 0.1545 million units of housing, with a cumulative delivery area of 18.22 million square meters, covering 178 cities in 29 provinces. Some projects have been delivered ahead of schedule.

On the sales front, according to the data disclosed by Country Garden, in August 2024, a total of approximately 3.43 billion yuan in contract sales, attributable to the company's shareholders' equity, was achieved for the month. In addition, Country Garden informed reporters that in the first 8 months of 2024, the total equity sales amount of the company was approximately 32.8 billion yuan, a year-on-year decline of about 78%.