JY Grandmark Holdings Limited Issues Critical Update on 2024 Disclaimer of Opinion and Financial Position

Hong Kong, 4 March 2026 – JY Grandmark Holdings Limited (“the Company”, stock code: 2231) has released a voluntary announcement providing investors and shareholders with a comprehensive update on the ongoing issues surrounding the disclaimer of opinion issued by its auditors for the financial year ended 31 December 2024.

Key Points from the Announcement

• Auditor’s Disclaimer of Opinion: The auditors issued a disclaimer of opinion on the Group’s consolidated financial statements for FY2024, citing multiple uncertainties that cast significant doubt on the Group’s ability to continue as a going concern.
• Liquidity and Defaulted Borrowings: As of 28 February 2026, the Group had total borrowings of approximately RMB 3,031 million. Notably, RMB 2,881 million of these borrowings are in default and could be called for immediate repayment at the lenders’ discretion.
• Legal Proceedings: Ping An Bank Co., Ltd. Guangzhou Branch has initiated court proceedings against two Group subsidiaries—Guangzhou Jingyu Real Estate Development Co., Ltd. and Guangzhou Jingye Mingbang Holdings Co., Limited—for the recovery of a RMB 580 million loan. A pre-trial hearing is scheduled for 9 March 2026.
• Debt Restructuring Efforts: The Group is actively negotiating with creditors to renew and extend the repayment terms of its defaulted borrowings and is working with advisors to formulate a comprehensive debt restructuring plan.
• Sales and Cash Flow Measures: Management is accelerating pre-sales and sales of both properties under development and completed units to improve liquidity. For the fourteen months ending 28 February 2026, the Group and its associates recorded aggregated contracted sales of approximately RMB 274.81 million.
• Alternative Financing: The Company is seeking alternative financing and government support to meet its financial obligations and to add new funding sources. Management is also reviewing and updating the Company’s asset position to ensure clear access to financing channels.

Important Information for Shareholders

• Significant Default Exposure: The Group’s defaulted borrowings (RMB 2,881 million) represent a major financial risk. The fact that most lenders have not yet demanded immediate repayment is a temporary reprieve, but the situation remains precarious and may change at any time.
• Legal Action by Major Lender: The ongoing lawsuit by Ping An Bank could result in significant financial and operational ramifications if the court rules against the Group’s subsidiaries or if guarantees are enforced.
• Uncertainty on Going Concern: The disclaimer of opinion from the auditors underscores the possibility that the Group may not be able to continue as a going concern, which can be highly price-sensitive and may drive significant share price volatility.
• Ongoing Debt Restructuring: The outcome of negotiations and restructuring efforts with creditors is critical for the Group’s survival and will be closely watched by the market.
• Reliance on Management Accounts: The financial and operating data provided are unaudited management accounts and may differ from future disclosures in regular reports.

Potential Share Price Impact

The combination of defaulted debt, litigation, auditor’s disclaimer, and uncertain restructuring outcomes introduces significant risks for JY Grandmark Holdings Limited. These developments could be highly price-sensitive, as they directly affect the Group’s solvency, financing options, and future profitability. Investors should monitor upcoming announcements, particularly regarding the legal proceedings and any concrete progress on debt restructuring.

Board and Management Statement

The Board has cautioned shareholders and potential investors against relying solely on the unaudited data in the announcement and advises seeking professional advice before making investment decisions. The announcement reiterates that the information provided does not constitute an assurance of the Group’s future financial results.

Board Composition

The Board comprises Chairman Shek Lai Him, Abraham (non-executive Director), executive Directors Liu Huaxi, Zheng Catherine Wei Hong, and Yu Jiafeng, as well as independent non-executive Directors Ma Ching Nam, Leong Chong, and Wu William Wai Leung.

Disclaimer: This article is for informational purposes only and is based on unaudited management data as disclosed by JY Grandmark Holdings Limited. It does not constitute investment advice or an offer to buy or sell any securities. Investors should exercise caution and consult professional advisors before making any investment decisions.

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