On July 22, 2022, Zhaotai Group offered payment and interest for its "non-public corporate bonds 2020 (first issue)" issued within the territory of China and got delisted in Shanghai Stock Exchange. The bonds, worth of RMB 1.63 billion and issued with a maturity of 2 years, a current coupon rate of 7.00% and a maturity date of September 24, 2022, were redeemed in full in advance.
A trustworthy enterprise despite difficulties
In the first half of 2022, most of the real estate industry bonds mature, and the scale of outstanding bond increases significantly. As such, the scale and sustainability of the financing "gap" should not be underestimated. With such a tough financing environment, Zhaotai Group has boosted the confidence of its investors by making early repayments--
“We were very surprised and moved by Zhaotai Group's early repayment given the high risks in the real estate industry and the extremely tough financing environment" (E Fund Management)
“The industry has cycles and only companies with good faith will secure steady progress. We have faith in your company and will continue to support you." (Huatai Securities)
“We always have trust in the strength, good faith and executive power of Zhaotai Group. We are very grateful for the efforts and good faith of Zhaotai Group despite the extraordinarily complex financial environment this year. As the Group celebrates its 30th anniversary, we hope it continue to focus on the core areas of Beijing, build premium spaces in the city, and make prosperity forever.” (Horizon Asset)
“We are moved by the Group's early repayment and good faith” (Shanghai Trust)
Forging ahead for further progress
Over the past 30 years, Zhaotai Group has always honored its corporate credit and has never defaulted on credit. With the joint efforts of the Group's leadership, the Group's primary credit rating was upgraded from AA to AA+ in 2020, broadening the Group's access to diversified financing and optimizing the financing structure. Following the principle of soundness, Zhaotai Group has ensured premium assets and ample cash flow and chosen projects that are in line with the Group's development strategy, its annual budget, and investment capacity.
When many real estate companies scrambled to secure land and expand the scale of residential housing, Zhaotai Group made inroads into commercial property in a decisive manner to grab the exciting opportunities. While many real estate enterprises were obsessed with diversified operations and sought blind expansion in unfamiliar fields, Zhaotai Group focused on its main business and created two new main businesses: high-end property operation and commercial management. When many real estate companies sought to sell land amid business difficulties because of policy change, Zhaotai Group was firm in holding its core plots, thus embracing market opportunities.
Leading the way on its chosen course
Thanks to the visionary planning of its leaders, Zhaotai Group has always been proactive in identifying and responding to changes, thus defining a distinctive development path: building the best high-end office, commercial and hotel properties to create sustainable value.
Building on its strength to deliver better results
Despite market volatility, Zhaotai Group has always kept up with the times to scale new heights. Looking into the future, Zhaotai Group will maintain a visionary perspective and sense of responsibility and harness the strength of technology and digital force, to deeply engaged in the re-building of urban spaces, enhance the quality of cities, offer better operation services, and build a first-class enterprise with a superb brand, leading innovation capability, and modern governance.
