Jinwu Financial News | South China City (01668) opened and fell rapidly. As of press release, it had fallen by more than 18% to HK$0.173, with a turnover of HK$500,000.
According to the news, the company announced that in recent years, due to changes in external factors, the company's sales have fallen short of expectations, and cash flow can only guarantee daily operating needs. As a result, working capital is becoming increasingly tight, and it faces great pressure to repay debt and interest. Since 2022, various positive measures have been taken, and overseas dollar bonds have been successfully rolled over several times, but the company's operations and financial situation have not improved in a timely manner. Therefore, it is not expected that the mandatory redemption amount due on the October 2024 note will be paid on February 9, 2024, which will cause a default event on the 2024/10 note; it is also expected that interest will not be paid on the 2024/4 note due on February 12, 2024. Failure to pay this interest before March 13, 2024 will result in the April 2024 note Incidents of breach of contract.
According to the company, the above default may trigger default events under other debts, which in turn will result in failure to fulfill payment obligations under outstanding debts, thereby causing significant adverse effects on business, operations and financial conditions, including the possibility of bankruptcy or other forms of restructuring.