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Zhongliang Steps Up Liquidity Measures to Tackle Auditor’s Going-Concern Disclaimer

Story Highlights
  • Zhongliang has extended key debts, raised RMB2 billion in financing and cut expenses by up to 25% to bolster liquidity and address its auditor’s going-concern disclaimer.
  • The developer is accelerating property sales, managing payments to contractors and considering project disposals to generate cash, reduce leverage and stabilize its capital structure amid tight escrow controls.
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Zhongliang Steps Up Liquidity Measures to Tackle Auditor’s Going-Concern Disclaimer

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An announcement from Zhongliang Holdings Group Company Limited ( (HK:2772) ) is now available.

Zhongliang Holdings Group Company Limited has provided an update on its efforts to address a going-concern disclaimer from its auditor by improving liquidity and strengthening its financial position. The group has negotiated renewals and extensions of bank and other borrowings, including pushing out the maturities of its 5.0% senior notes due 2027 and 3.0% convertible bonds due 2027, secured around RMB2.0 billion in new and extended financing at lower interest costs, and implemented cost-control measures that cut distribution and administrative expenses by roughly 20–25% in the eleven months to 30 November 2025. It also accelerated property sales and collections, bringing in about RMB4.2 billion in sales proceeds, though most of these funds remain locked in project-level escrow accounts under strict local government rules, and it is working with contractors on payment schedules while exploring disposals of stakes in certain development projects to generate cash and reduce debt. Management says it remains committed to these measures to stabilise liquidity, optimize capital structure and support shareholder value, but stresses that the figures disclosed are preliminary and unaudited, cautioning investors about potential deviations in forthcoming financial statements.

The most recent analyst rating on (HK:2772) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Zhongliang Holdings Group Company Limited stock, see the HK:2772 Stock Forecast page.

More about Zhongliang Holdings Group Company Limited

Zhongliang Holdings Group Company Limited is a Chinese property developer, operating through multiple subsidiaries and primarily engaged in residential and related real estate projects in mainland China. Listed in Hong Kong, the group focuses on property development and sales, with its performance closely tied to China’s highly regulated and liquidity‑challenged real estate sector.

YTD Price Performance: -45.45%

Average Trading Volume: 2,822,526

Technical Sentiment Signal: Sell

Current Market Cap: HK$276.8M

Learn more about 2772 stock on TipRanks’ Stock Analysis page.

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