Longfor Group: The deadline for the overall creditor support agreement has been extended to March 31, 2027, with a net loss of 4.88 billion yuan last year.

On March 31, Longfor Group (03380.HK) disclosed the latest progress of its overall restructuring plan.

The announcement states that Longfor Group plans to submit documents to the Grand Court of the Cayman Islands and the High Court of Hong Kong’s Court of First Instance in the near future, applying to convene a plan creditors’ meeting to implement the Cayman Agreement Arrangement Plan and the Hong Kong Agreement Arrangement Plan. To allow sufficient time to complete the offshore debt restructuring work, Longfor Group and the creditor group have reached an agreement to extend the deadline for the overall CSA (Creditor Support Agreement) to March 31, 2027.

Longfor Group stated that it will publish further announcements in a timely manner according to the listing rules and other regulations, providing the latest information on the overall restructuring plan.

Previously, Longfor Group disclosed in its 2025 financial report that in 2025, the group achieved approximately 4.78 billion yuan in contractual sales of rights, recognized revenue of 6.31 billion yuan, a gross loss of 7 billion yuan, and a net loss of 4.88 billion yuan for the year.

Regarding the reasons for the losses, Longfor Group said that the sustained losses were mainly due to the continued downturn in the real estate industry, the still low gross profit margin, and provisions for inventory impairment.

In the 2025 contractual sales, the Greater Bay Area, Yangtze River Delta, Southwest region, and other regions accounted for approximately 51.6%, 15.3%, 4.7%, and 28.4%, respectively.

As of the end of 2025, Longfor Group’s total current assets were 144.23 billion yuan, including cash and cash equivalents of 7.98B yuan, with total current liabilities of 143.85B yuan.

As of the end of 2025, Longfor Group’s newly started projects had a planned total construction area of about 400k square meters. Completed projects had a planned total construction area of about 1.26 million square meters, and projects under development had a planned total construction area of about 6.77 million square meters.

During the period, Longfor Group did not acquire any new projects through public market “bidding and auction” methods. As of the end of the period, the group’s land reserves had a total construction area of approximately 23.0035 million square meters. Based on the value, the Greater Bay Area and Yangtze River Delta regions accounted for about 76%.

For future prospects, Longfor Group stated that the group will continue to focus on both production operations and debt management. On one hand, it will continue to take active measures to "maintain operational stability and ensure quality delivery,"坚持稳经营、控风险. On the other hand, the group will do its utmost to complete domestic and overseas debt restructuring as soon as possible to repair the capital structure and gradually restore normal production and operations.