Yida China Holdings Limited Discloses Major Loan Default and Cross-Default Risks

Key Points from the Announcement

• Breach of Major Loan Agreement: Yida China Holdings Limited (“the Company”) has breached a significant loan agreement with Bohai International Trust Co., Ltd. (“Bohai Trust”). The outstanding loan principal is RMB 498 million, with accrued interest yet to be repaid. The original contracted loan amount was RMB 1.6 billion, signed in May 2017.
• Loan Security and Guarantees: The loan is secured by mortgages on approximately 27,000 square meters of land and about 2,100 square meters of real estate. Additional security includes a 100% equity pledge in Dalian Gaoji Property Development Company Limited (“Gaoji Company”), and joint and several liability guarantees from other group subsidiaries.
• Loan Maturity and Terms: The outstanding principal is due on 2 May 2025, with a 4% interest rate. Despite negotiations, the Company has not repaid the principal or interest as of the announcement date.
• Triggering of Cross-Default Clauses: As of 30 June 2025, the Group failed to repay RMB 6.445 billion in principal, interest, and consent fees across various borrowings. This has triggered cross-defaults, meaning RMB 5.107 billion of borrowings (excluding the overdue amounts) can be called for immediate repayment if creditors demand.
• Estimated Cross-Default Impact: As of 28 February 2026, cross-defaults amount to approximately RMB 4.223 billion, included within the total overdue and defaulted borrowings.
• Ongoing Negotiations and Uncertain Financial Impact: The Company is actively negotiating with creditors for loan extensions and debt restructuring, but no resolution has been reached. The full financial impact on the Company is still under review.

Significant Issues for Shareholders and Potential Investors

• Debt Default and Cross-Default: The breach of loan and triggering of cross-default clauses represent significant financial distress. This situation could lead to demands for immediate repayment of substantial liabilities, posing a risk to the Company’s liquidity and ongoing operations.
• Potential Asset Seizures: The substantial assets pledged as collateral (land, real estate, and equity interests) may be at risk if the Company cannot reach an agreement with creditors.
• Share Price Sensitivity: The scale of the default and cross-default, ongoing negotiations, and uncertain financial impact are likely to affect investor sentiment and may lead to significant share price volatility.
• Caution Advised: The Board advises shareholders and investors to consider the associated risks and exercise caution when dealing in the Company’s securities.

Details of Board and Management

The announcement is made under the authority of the Board, including Chairman and CEO Mr. Jiang Xiuwen. The executive Directors are Mr. Jiang Xiuwen and Mr. Yuan Wensheng, with a mix of non-executive and independent non-executive Directors.

Summary

This disclosure of loan default and cross-default by Yida China Holdings Limited is a material event, with significant implications for the Company’s financial health and share value. Investors and shareholders should closely monitor further announcements as the outcome of ongoing negotiations will be crucial in determining the Company’s ability to resolve its current financial challenges.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their professional advisors and review official disclosures before making any investment decisions. The Company’s financial situation remains fluid, and further announcements may materially impact its prospects.

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