China South City Maintains Good Business Development, Diversified Financing Channels and to Optimise its Debt Structure  
28 October 2019 – China South City Holdings Limited (“China South City” or “the Group”) has maintained good development trend in various aspects in the past six months, with which, the contracted sales increased by 14% year-on-year and its recurring business sustained its growth momentum. Meanwhile, the Group actively engages itself to optimise its asset and debt structure and to further diversify its financing channels. During the past six months, the Group successfully completed several financing exercises through both onshore and offshore financing channels, including onshore issuance of a medium-term note with principal amount of RMB600 million and a domestic company bond with principal amount of RMB1.4 billion, together with an offshore tap issuance of US$60,000,000 senior note. Currently, the Group has a RMB750 million quota of housing mortgage asset-backed securities (“ABS”) and sufficient quota for offshore bond issuance. The Group will consider the use of such quotas according to both its funding demand and market conditions.

As a large-scale integrated trade and logistics enterprise, China South City has gained trust from commercial banks, enabling it to acquire various types of loan facilities. Apart from regular financing arrangements, the Group strives to increase the proportion of long-term loans, in order to optimise its debt structure and strengthen cash-flow management. This move has gained the Group recognition from principal banks with long-term relationship. Among which, one of the large-scale state-owned banks has recently offered a fixed-assets backed facility of RMB600 million for 15 years and it has been drawn down. In the future, the Group will closely response to market changes, and work closely with financial business partners, to continue optimising the Group’s debt structure.

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