ZHENRO PPT (06158.HK): Proposes restructuring of nine SSE-listed corporate bonds with outstanding principal of approximately RMB 6.661 billion

NewTimeSpace News: On 10 August 2026, Zhenro Properties Group Limited (stock code: 06158) published an inside information announcement, announcing that Zhenro Properties Holdings Limited ("Zhenro Properties"), an indirect wholly-owned subsidiary of the Company, published a creditors' meeting notice on the Shanghai Stock Exchange on 7 August 2026, proposing to restructure nine corporate bonds listed on the SSE, namely H21 Zhenro 01, H20 Zhenro 02, H20 Zhenro 03, HRP9 You, H Rong 10 You, H Zhenro 1 You, H Zhenro 2 You, H Zhenro 3 You and H Zhenro 4 You (the "Listed Corporate Bonds"). As of the date of this announcement, the aggregate outstanding principal amount of the Listed Corporate Bonds was approximately RMB 6,661.4 million (or approximately RMB 7,203.0 million including accrued interest).

Under the restructuring framework, the PRC Listed Corporate Bonds Restructuring will offer the following schemes to holders of the Listed Corporate Bonds: first, a one-off cash payment of RMB 64 million to offset 8% of the outstanding principal amount of the Listed Corporate Bonds (including accrued interest) (expected not to exceed RMB 800 million), to be made within two months after obtaining approval from the majority of the holders; second, the use of sales proceeds from three property projects, which are expected to amount to approximately RMB 179 million (net of relevant loans and construction costs), to offset part of the outstanding principal of the Listed Corporate Bonds at a ratio of RMB 11 of sales proceeds per RMB 100 of outstanding principal, with the amount expected to be offset in this manner not exceeding RMB 1,600 million, and the sales proceeds to be kept in a trust account for five years; and third, the remaining principal of the Listed Corporate Bonds (including accrued interest) will be exchanged for new bonds to be issued by Zhenro Properties with a maturity of approximately 8.5 years, with the principal of the new bonds repayable after two years and settled on a quarterly basis, with the applicable interest rate prior to the reference date remaining unchanged (being the original coupon rate of the relevant Listed Corporate Bonds) and simple interest calculated at 1% per annum after the reference date.

The announcement noted that, as the sales of two property projects, namely Changle Tangyue Guanlan and Yichun Jintou projects, were conducted in the ordinary and normal course of the Company's business and are revenue-generating in nature, the sale of such property projects and the use of the sales proceeds to repay part of the outstanding principal of the Listed Corporate Bonds do not constitute disclosable transactions of the Company under the Listing Rules; Tianjin Zhongchu Dongjing is held by a related company of the Company, and the sale of that property project also does not constitute a disclosable transaction. The PRC Listed Corporate Bonds Restructuring is subject to approval from the majority of the holders of the Listed Corporate Bonds, which may or may not be obtained, and certain schemes are also subject to internal approvals from trusts and other entities. If the restructuring proceeds as planned, the Board considers that the Group's debt level will be reduced, and the Company will make further announcement(s) on the progress of the restructuring in due course; shareholders and potential investors should exercise caution when dealing in the securities of the Company.

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