Modern Land (China) Co., Limited Provides Key Update on Liquidity Measures and Progress Toward Lifting Auditor Disclaimer

Modern Land (China) Co., Limited (“the Company”, Stock Code: 1107), has issued a detailed update concerning the ongoing implementation of its plans and measures aimed at improving its liquidity position and financial stability. These efforts are part of the Company’s strategy to resolve the auditor’s disclaimer of opinion related to its going concern status, as previously disclosed in the announcement dated 25 November 2025 and the annual report for the year ended 31 December 2024.

Key Highlights from the Company’s Progress Report

• Active Debt Negotiations: The Company continues negotiations with existing creditors to renew or extend repayment terms for its bank and other borrowings. Senior noteholders are also being approached for repayment of principal and interest at maturity or for consent to further extensions of maturity dates. These discussions are critical to managing near-term liquidity risks and addressing maturing obligations.
• Corporate Bond Extension Secured: A significant milestone has been reached as the Company secured an agreement with its corporate bondholders to extend the maturity of these bonds to 30 July 2026. This extension provides vital breathing space for the Company to stabilize its financial position.
• Asset Disposals and Supplier Negotiations: The Company is actively negotiating with contractors and suppliers to manage payment schedules and is seeking opportunities to dispose of equity interests in certain project development companies. These actions are intended to generate additional cash inflows and/or reduce overall indebtedness.
• Sales Performance and Receivables: In the first two months of 2026, the Company achieved contracted property sales of approximately RMB277 million. The Company is also accelerating the collection of outstanding sales proceeds and the recovery of other receivables to reinforce cash flows.
• Cost Control Initiatives: In response to ongoing weakness in China’s real estate market, the Company has implemented strict cost controls, particularly in distribution and administrative expenses, resulting in certain cost savings versus budgeted figures.
• Potential Share Sale by Controlling Shareholder: The controlling shareholder is in discussions with potential investors for a proposed sale of a portion of the Company’s shares. While negotiations are ongoing and no binding agreements have been reached, any developments in this area could have significant implications for the Company’s ownership structure and market value.
• Litigation and Settlement Efforts: The Company is proactively seeking amicable solutions regarding outstanding claims and litigations, aiming to resolve these matters in a way that will not further impact its financial standing.

Important Considerations for Shareholders and Potential Investors

• The extension of debt maturities, ongoing asset disposals, and improved sales collection are all direct responses to the auditor’s disclaimer of opinion, and successful execution of these plans is essential for resumption of trading and restoration of investor confidence.
• The potential sale of shares by the controlling shareholder to new investors remains at the negotiation stage. This could lead to changes in the Company’s shareholding structure and may influence the Company’s share price once details are finalized and announced.
• All financial data disclosed in this update is preliminary and unaudited. There may be variances when the audited or half-yearly statements are published.
• The Company emphasizes that there are ongoing risks and uncertainties, especially given the challenging environment in China’s real estate sector. Investors are urged to remain cautious and closely monitor future announcements.

Board Composition

As of 12 March 2026, the Board consists of seven Directors, including three executive Directors (Mr. Zhang Peng, Mr. Zhang Lei, and Mr. Chen Yin), one non-executive Director (Mr. Zeng Qiang), and three independent non-executive Directors (Mr. Hui Chun Ho, Eric, Mr. Gao Zhikai, and Ms. Zhu Caiqing).

Potential Share Price Impacts

• Debt restructuring and maturity extensions may reduce short-term default risk, potentially supporting a positive market response.
• Any finalization of new strategic investors or changes in major shareholdings could be price-sensitive events and may significantly impact the Company’s valuation.
• Improved sales and cash collection could alleviate liquidity concerns and further support investor sentiment.

Disclaimer: The above information is based on preliminary, unaudited internal data and may differ from future audited or unaudited consolidated financial statements. The Company has highlighted risks and uncertainties, and investors are strongly advised to exercise caution and not rely solely on this update for investment decisions. Market participants should closely monitor future official announcements for authoritative disclosures.

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