JY Grandmark Holdings Limited on January 2024 successfully exchanged its senior notes with an aggregate principal amount of USD 152 million due 2024 with newly issued senior notes amounting to USD 159 million due 2025. As disclosed in the announcement (the "Results Announcement") of the Company dated 27 March 2024 in relation to the consolidated annual results of the Group for the year ended 31 December 2023, as at 31 December 2023, the Group did not make payment on certain borrowings of an aggregate principal amount of approximately RMB 108 million (the "Initial Defaulted Borrowings"). Subsequent to 31 December 2023 and up to the date of the Results Announcement, the Group also did not settle certain borrowings with an aggregate principal amount of approximately RMB78 million (the "Subsequent Defaulted Borrowings").

As a result of the non-payment of the Initial Defaulted Borrowings and the Subsequent Defaulted Borrowings, certain borrowings of an aggregate principal amount of approximately RMB 2,275 million, including the 2025 Notes, were considered to be in default under the cross-default provisions of the relevant borrowings as at the date of the Results Announcement. The Board announced that, after the date of the Results Announcement, the Group repaid certain Subsequent Defaulted Borrowings of a principal amount of RMB 75 million and successfully sought agreement from the remaining creditors of the Initial Defaulted Borrowings and Subsequent Defaulted Borrowings for the extension of the repayment date of the principal and interest of the same and also from the creditor(s) of other borrowing(s) for the extension of the repayment date of interest of the same. As such, the Group no longer has any amount that is immediately due and payable as at the date of this announcement.

Further, as at the date of this announcement, the Group has obtained consents from noteholders of the 2025 Notes to waive any event of default under the 2025 Notes that has arisen or may arise from other indebtedness of the Group. In order to meet its current and future repayment obligations under its borrowings, the Group will continue to implement plans and measures to accelerate the pre-sales and sales of its properties under development and completed properties held for sale, and to speed up the collection of outstanding sales proceeds. The Group will closely monitor the process of construction of its property development projects to endeavour to ensure that construction and related payments are fulfilled, the relevant properties sold under pre-sale arrangement are completed and delivered to the customers on schedule as planned, so that the Group is able to release restricted cash to meet its other financial obligations.

The Group will also continue to seek other alternative financing and borrowings to finance the settlement of its existing financial obligations and future operating expenditure.