BRIEF-China Evergrande Announces Offshore Restructuring Proposal

China Evergrande: * IN FIRST HALF OF 2022, GROUP ACHIEVED CONTRACTED SALES OF PROPERTIES OF RMB12.26 BILLION

* HAS BEEN WORKING WITH ITS LEGAL AND FINANCIAL ADVISORS IN ASSESSING SITUATION OF GROUP WITH A VIEW TO FORMULATING A SOLUTION * SINCE JULY 1, 2021, GROUP HAS COMPLETED AND DELIVERED A TOTAL OF 232,000 UNITS OF PROPERTY WITH AN AGGREGATE GFA OF 24.19 MILLION SQUARE METERS

* GROUP HAS PARTIALLY OR COMPLETELY RESUMED CONSTRUCTION OF 96% OF ITS PRE-SOLD AND UNDELIVERED PROJECTS * FULLY COMMITTED TO OFFSHORE RESTRUCTURING

* GROUP ENDEAVOURS TO MAINTAIN THE SUSTAINABILITY OF ITS OPERATIONS * EXPECTED THAT IT WILL TAKE A RELATIVELY LONG TIME FOR BUSINESS TO RESTORE ORDERLY OPERATIONS AND ASSET VALUE OF ALL STAKEHOLDERS

* HAS BEEN WORKING WITH ITS LEGAL AND FINANCIAL ADVISORS IN ASSESSING SITUATION OF GROUP * RESTRUCTURING PROPOSAL WILL BE BASED ON FAIR TREATMENT OF ALL CREDITORS RELATIVE TO THEIR EXISTING RIGHTS AND CLAIMS

* GROUP WILL ARRANGE ASSET PACKAGE(S) IN COMPLIANCE WITH LAW AS SUPPLEMENTAL CREDIT ENHANCEMENT FOR RESTRUCTURED OFFSHORE DEBTS AS APPROPRIATE * ADVISORS ARE STILL ANALYSING RIGHTS AND CLAIMS OF CREDITORS

* ASSETS IN ASSET PACKAGE MAY INCLUDE EQUITY INTEREST IN OFFSHORE SUBSIDIARIES DIRECTLY OR INDIRECTLY HELD BY COMPANY * COMPANY INTENDS THAT OFFSHORE RESTRUCTURING PROPOSAL WILL COVER AS MANY OF ITS CREDITORS' CLAIMS AS POSSIBL

* EXPECTED THAT THE DUE DILIGENCE WORK ON THE GROUP WILL ESSENTIALLY BE COMPLETED IN THE NEAR FUTURE * ASSETS IN ASSET PACKAGE(S) MAY INCLUDE ASSETS TO WHICH RELEVANT OFFSHORE CREDITORS HAVE A RIGHT OF RECOURSE

* DEBTS THAT WILL BE COVERED BY PROPOSED OFFSHORE RESTRUCTURING ARE EXPECTED TO INCLUDE USD SENIOR NOTES ISSUED BY CO * OFFSHORE RESTRUCTURING PROPOSAL IS INTENDED TO BE IMPLEMENTED BY ONE OR MORE SCHEMES OF ARRANGEMENT

* DEBTS THAT WILL BE COVERED BY PROPOSED OFFSHORE RESTRUCTURING ARE EXPECTED TO INCLUDE USD SENIOR NOTES ISSUED BY SCENERY JOURNEY LIMITED AND GUARANTEED BY TIANJI HOLDING * DEBTS THAT WILL BE COVERED BY PROPOSED OFFSHORE RESTRUCTURING ARE EXPECTED TO INCLUDE USD SENIOR NOTES ISSUED BY COMPANY

* DEBTS THAT WILL BE COVERED BY PROPOSED OFFSHORE RESTRUCTURING ARE EXPECTED TO INCLUDE OTHER OFFSHORE DEBTS OF COMPANY AND ITS OFFSHORE SUBSIDIARIES * GROUP LOOKS FORWARD TO A CONSTRUCTIVE DIALOGUE WITH THE ONSHORE AND OFFSHORE CREDITORS

* GROUP WILL COMMUNICATE WITH RELEVANT CREDITORS AND THEIR RESPECTIVE ADVISORS ON OFFSHORE RESTRUCTURING FRAMEWORK AND PROPOSAL * AIMS TO ACHIEVE FURTHER POSITIVE PROGRESS AND ANNOUNCE A SPECIFIC OFFSHORE RESTRUCTURING PLAN WITHIN 2022

* ON JULY 6, 2022, HENGCHI 5 FORMALLY COMMENCED PRE-SALE PROCESS * DEBTS THAT WILL BE COVERED BY PROPOSED OFFSHORE RESTRUCTURING ARE EXPECTED TO INCLUDE OTHER OFFSHORE DEBTS OF COMPANY AND ITS OFFSHORE SUBSIDIARIES

* ENCOURAGE OFFSHORE CREDITORS TO ACTIVELY ENGAGE WITH GROUP'S FINANCIAL ADVISORS * INTENDS THAT OFFSHORE RESTRUCTURING PROPOSAL WILL COVER AS MANY OF ITS CREDITORS' CLAIMS AS POSSIBLE

* EXPECTED THAT DUE DILIGENCE WORK ON GROUP WILL ESSENTIALLY BE COMPLETED IN NEAR FUTURE. * OFFSHORE RESTRUCTURING PROPOSAL IS INTENDED TO BE IMPLEMENTED BY ONE OR MORE SCHEMES OF ARRANGEMENT

* EXPECTED THAT DUE DILIGENCE WORK ON GROUP WILL ESSENTIALLY BE COMPLETED IN NEAR FUTURE * AIMS TO ACHIEVE FURTHER POSITIVE PROGRESS AND ANNOUNCE A SPECIFIC OFFSHORE RESTRUCTURING PLAN WITHIN 2022

* SINCE JULY 1, 2021, GROUP HAS COMPLETED AND DELIVERED A TOTAL OF 232,000 UNITS OF PROPERTY * IT WILL TAKE A RELATIVELY LONG TIME FOR THE BUSINESS TO RESTORE ORDERLY OPERATIONS AND ASSET VALUE OF ALL STAKEHOLDERS Further company coverage: