China’s real estate giant Country Garden announced on the evening of December 6th on the Hong Kong Stock Exchange that the company, along with its Executive Chairman Yang Huiyan, CEO Mo Bin, and CFO Wu Bijing, had recently received notifications from the Shanghai Stock Exchange. This was because the company failed to timely disclose its annual report for the year 2023 in accordance with the relevant rules of the stock exchange, leading to the Shanghai Stock Exchange imposing self-regulatory measures on the company and the named individuals.
As a result, the Shanghai Stock Exchange criticized and recorded a warning on the integrity files of the company, Yang Huiyan, Mo Bin, and Wu Bijing. Additionally, Country Garden’s subsidiary, Country Garden Real Estate, and Yang Huiyan received notifications from both the Shanghai and Shenzhen Stock Exchanges for failing to submit and disclose the annual report for Country Garden Real Estate for the year 2023 according to the rules, resulting in self-regulatory measures being taken by the two exchanges against the company and Yang Huiyan.
Country Garden stated that its board of directors had reviewed the correspondence regarding the self-regulatory measures. The board deemed the violations were due to objective reasons, such as the group’s inability to complete the audit of its 2023 performance in a timely manner, rather than the negligence of the individuals involved. Thus, the board, excluding Yang Huiyan, Mo Bin, and Wu Bijing, found no reason to doubt their integrity and capabilities and deemed it appropriate for them to continue serving as executive directors. The group expressed a high regard for the criticism received and pledged to strictly adhere to bond disclosure requirements and fulfill disclosure obligations in accordance with the law.
It’s worth mentioning that, following Country Garden’s request, trading of the company’s shares on the Hong Kong Stock Exchange has been suspended since April 2, 2024, and will remain suspended until further notice.
According to corporate registry data, Country Garden Real Estate Group Limited and Anqing Country Garden Real Estate Development Co., Ltd. have had additional equity freeze information. The frozen equity involves Anqing Country Garden Real Estate Development Co., Ltd. and Anhui Changhe Properties Co., Ltd., with a combined total of 760 million yuan.
Furthermore, Country Garden Real Estate Group Limited currently has 15 instances of executive information totaling an executed amount of 1.173 billion yuan, while Anqing Country Garden Real Estate Development Co., Ltd. has 16 instances totaling 69.3929 million yuan.
Earlier, Country Garden Real Estate Group Limited and Yantai Country Garden Real Estate Development Co., Ltd. had one new instance of executive information with an execution target of over 120 million yuan.
According to data from the China Index Research Institute, from January to November 2024, the total sales of the top 100 real estate enterprises in China amounted to 3.8516 trillion yuan, a year-on-year decrease of 32.9%. Country Garden’s sales in the first 11 months were less than half of the same period last year, dropping by 73.17%.