February 25, 2020 - China South City Holdings Limited ("South China City" or the "Group") has made tranches of significant advances in financing recently. China South City has maintained close relationships with various commercial banks and obtained various types of loan facilities. Following the RMB 1.4 billion 15-year fixed asset mortgage financing completed earlier this month, the Group recently obtained long-term fixed asset mortgage financing approvals from three large domestic banks on properties in Shenzhen Guangdong, Nanning Guangxi and Nanchang Jiangxi, the total amount of which is RMB 1.23 billion (The tenor of over 80% of the facilities is more than 10 years and the tenor of the rest is 5-year). The cumulative long-term (more than 5 years) bank financing of this month has exceeded RMB 2.6 billion. At the same time, on February 19, the Group also successfully issued US $ 225 million 2.33-year senior notes. In the future, the Group will maintain close cooperation with domestic and foreign financial institutions and continue to promote multiple long-term loans. With the completion of this type of financing, the Group's financing structure will be further optimized.

It is worth mentioning that the Group has also started to repurchase senior notes one after another. Earlier, the Group announced that it had repurchased some of the senior notes on the open market multiple times, repurchasing a total of US $ 75.3 million in principal, and completed cancellation. Recently, the Group also repurchased some other senior notes in the open market with a total principal amount of US $ 7 million. The repurchase of these notes will also effectively improve the debt structure of the Group, reduce interest expenses, and further enhance the performance of its bonds in the market. The Group will continue to review its financial structure and will not rule out the continued repurchase of notes at the appropriate time. The Group believes that the realization of multiple domestic and foreign financing channels will have a positive effect on the company's stable cash flow, reducing financing costs and accelerating sustainable development.