On the evening of January 23, Jinke Property Group issued an announcement regarding the second creditors’ meeting of the company and its wholly-owned subsidiary. The announcement stated that Jinke would hold the second creditors’ meeting for the restructuring cases of the company and Chongqing Jinke on February 18, 2025.
On the same day, Jinke Property Group also released its 2024 annual earnings forecast, predicting continued losses in net profit attributable to shareholders due to factors such as a decrease in annual profit carry-over, an increase in the expensing of interest on debt with interest, and the provision for asset impairment losses.
Unlike other companies that continue to operate, Jinke Property Group is currently advancing its restructuring efforts, and its annual financial data necessarily takes into account the factors of judicial audit and assessment. Drawing on past cases of companies that have completed restructuring, significant debt restructuring gains are expected to be recognized upon completion of the restructuring, which will substantially boost the company’s net assets. For Jinke, the company has now entered a critical period of restructuring. If the restructuring is successfully completed, it will greatly optimize the company’s financial indicators, potentially leading to significant improvements in its asset-liability structure and a recovery and improvement in its operating capabilities. This will be beneficial for the company’s long-term development and the protection of the interests of small and medium-sized investors and creditors.
Raising Debt Repayment Resources and Actively Restructuring to Improve Repayment Rates
As the only nationwide listed real estate company in A-shares that has had its restructuring application accepted by the court since 2024, Jinke Property Group’s restructuring process has attracted considerable market attention. The restructuring efforts have also received careful guidance and strong support from various government departments at all levels, including the Chongqing Municipal Party Committee, the Municipal Government, the China Securities Regulatory Commission, the Chongqing Fifth Intermediate People’s Court, and the Chongqing Liangjiang New Area Administrative Committee, as well as a dedicated task force established by the municipal government, which has played a significant role in facilitating the restructuring and strategic investment process. From the review of the restructuring application to the advancement of various tasks during the restructuring period, the Chongqing Fifth Intermediate People’s Court has strictly supervised each link, provided timely guidance on major matters, and ensured that the restructuring proceedings are conducted lawfully and efficiently, effectively safeguarding the legitimate rights and interests of all parties. Each creditor, especially financial institutions, has shown great understanding and valuable support for Jinke Property Group’s restructuring, making positive contributions to the smooth and efficient progress of the restructuring work.
The draft restructuring plan previously announced by Jinke clearly outlines the retention and divestiture of the company’s assets for asset optimization and adjustment. This is essentially an “asset restructuring plan” embedded within the draft restructuring plan. From a financial statement perspective, Jinke Property Group is expected to significantly reduce its debt-to-asset ratio through this plan. Furthermore, as the market gradually recovers, the company’s projects will gradually regain their market value, and the previously provisioned impairment losses are expected to be reversed, further enhancing its operating performance. In addition, the judicial restructuring gains will be recorded as “investment income,” directly impacting the company’s operating profit.
On the other hand, the special path of judicial restructuring provides legal safeguards for the true “slimming down” of Jinke Property Group, helping to preserve the company’s operational value and enabling creditors to receive more favorable repayment outcomes than they would in a bankruptcy liquidation scenario.
