Country Garden Services: Providing 1 billion yuan in mortgage loans to major shareholders to support Country Garden Group's delivery of completed buildings.

On May 6, Country Garden Services Holdings Limited disclosed a "Financial Assistance Announcement", stating that it will lend RMB 1 billion to Country Garden Group in one time through the way of pledging all the shares held by the major shareholder, aiming to support its BaoJiao building project. According to the announcement, the loan term is 5 years, with an annual interest rate of 5%, higher than the current bank interest income. In order to effectively protect the interests of all shareholders, several risk control measures have been established for the loan, including the pledging of all shares held by the borrower; dividends corresponding to the pledged shares can be used directly to pay interest and repay principal, etc.; in extreme circumstances, Country Garden Services can repurchase the pledged shares of the major shareholder at a price far below net asset value. Country Garden Services stated in the announcement that this loan will be disbursed using internal resources of the group and will not have any adverse impact on the company's cash flow or liquidity. According to the latest financial report data released by Country Garden Services on March 27, 2025, as of December 31, 2024, Country Garden Services still had a total of around RMB 18.18 billion in bank deposits and cash. A person close to the Country Garden Services group stated that the decision-making process for this loan is legal and compliant, and borrowing from the major shareholder in the long-term interests of the company helps maintain the long-term stability of the company's strategy, governance, management, and culture, reducing uncertainty and risks for the company.