01628.HK) Announced the Official Effectiveness of its Offshore Debt Restructuring, Marking a Key Step Toward Steady Development

(August 29, 2025, Hong Kong) - Yuzhou Group Holdings Company Limited ("Yuzhou Group" or the "Company"; stock code: 01628.HK) is pleased to announce that its offshore debt management and restructuring efforts, which span over three years, have yielded decisive results. The offshore restructuring has officially taken effect, marking a key step in improving the Company's liquidity and optimizing its financial structure, laying a solid foundation for future robust operations. The Company sincerely thanks all creditors and partners for their understanding and strong support.

After multiple rounds of negotiations, the final arrangement encompassed 15 senior notes, one perpetual bond, four secured notes, one syndicated loan, and one bilateral loan. As consideration for the restructuring, the Company successfully issued new bonds with an optimized structure, including short-term, medium-term, and long-term bonds. This arrangement not only significantly reduced financing costs but also successfully reduced the Group's outstanding offshore debt, effectively alleviating financial pressure, optimizing its capital structure, and enhancing its financial soundness and sustainability.

Furthermore, as a key component of the plan, certain creditors will receive 5,645 million newly issued shares, representing approximately 37.94% of the company's issued shares after the restructuring. This further solidifies the shared interests of creditors and the company, ensuring both sides continue to work together. The company also raised nearly HK$100 million through a rights issue to cover restructuring-related expenses and replenish the Group's working capital. This rights issue arrangement not only set a market precedent but also garnered a positive response from minority shareholders, fully demonstrating the strong recognition and unwavering confidence of shareholders and the market in the rationale of the plan and the Group's future development prospects.

The core objective of this restructuring plan is to adjust the scale of the Group's offshore debt to a reasonable level, restore the soundness and sustainability of the capital structure, and ensure the continued operation and healthy and vigorous development of the Group's business;

at the same time, to alleviate the company's liquidity pressure and make the new debt repayment plan consistent with the current operating status of the Chinese real estate industry and the Group; and to fairly treat and fully protect the rights and interests of all stakeholders, striving to maximize their value.

Yuzhou Group will continue to actively respond to policy calls, firmly fulfill its commitment to "guaranteeing housing delivery", strengthen cash flow management, enhance its internal revenue generation capabilities, and ensure stable business operations. Structural deleveraging measures will help the Group achieve a long-term sustainable capital structure and reduce overall operational risk. Following the completion of the restructuring, the company will steadily enhance its operational capabilities and strive to maximize value for all stakeholders.

Yuzhou Group once again expresses its sincere gratitude to all creditors and shareholders for their strong support, and firmly believes in working together to create a more stable and prosperous future.

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Established in 1994, Yuzhou Group is a property developer headquartered in Shanghai and Shenzhen with a national foothold. Adhering to its strategy of "Cultivating in Regions Leading the Market", Yuzhou Group strives to develop residential and commercial properties which align with market trends in tier-1 and tier-2 cities. As at 30 June 2025, the Company had over 161 projects under various stages of development in 38 cities including Beijing, Shanghai, Shenzhen, Tianjin, Nanjing, Hefei, Hangzhou, Suzhou, Foshan and Huizhou and so on. The total GFA under construction and held for future development is 10.35 million sq.m., accounting for about 30.7%, 22.4%, 17.4%, 14.0%, 12.1% and 3.4% respectively in the Yangtze River Delta Region, West Strait Economic Zone, Bohai Rim Region, Central China Region, Guangdong-Hong Kong-Macao Greater Bay Area and Southwest Region. Renowned for its distinguished product quality, diversified product portfolio, strong brand awareness and seasoned management team, Yuzhou Group has been named "Top 100 China Real Estate Enterprises" for 11 years in a row from 2011 to 2021; and Top 50 China Real Estate Enterprises from 2013 to 2021. Yuzhou Group was rated as "BBB" by MSCI ESG Ratings, ranking in the top among Chinese Properties Companies.

For more information of Yuzhou Group, please visit the company website: https://yuzhou-group.com

For inquiries, please contact:

Fax: (852) 2510 0265

Email: ir@yuzhou-group.com Yuzhou Group QR Code:

Tiomi Wu/Weixi Kong

Tel: (86) 15911047390/ (86) 18935978803

Email: yuzhou.list@everbloom.com.cn