Country Garden Names New Board Members as Chairman’s Nephew Loses Seat

Country Garden CFO Wu Bijun Joins Board of Directors

Mainland Chinese developer Country Garden Holdings announced last week that two of its executive directors have submitted their resignations. This means that since late November, China’s largest developer has been financially incapacitated by sales, including the sale of his three major stakes totaling HK$13.73 billion ($1.75 billion) since late November. because they are struggling with

Yang Zhicheng, 48-year-old nephew of Country Garden chairman Yang Guo-Qiang (or his Cantonese name, Yeung Kwok Keung), has stepped down from his position as managing director, along with 54-year-old Song Jun. According to documents filed by the developer with the Hong Kong Stock Exchange, he resigned from the board of directors “due to a job relocation.”

As part of a management restructuring, China’s largest builder by sales has appointed a new pair of executive directors, including Executive Vice President Cheng Guangyu and Vice President and Chief Financial Officer Wu Bijun. Their new term will begin on his Dec. 20 and run through Dec. 31, 2024, Country Garden said in a filing.

According to the announcement, Yang Zhicheng’s resignation on Dec. 20 means that he will relinquish his positions on both the Executive Committee and the Finance Committee, and Yang and Song will remain on the board after leaving the board. I plan to continue with other duties.

Driven from within

Appointed as Country Garden’s Executive Director in December 2006, Yang is responsible for the overall development and management of the company’s real estate projects. The executive has 28 years of experience in project development, according to the developer’s 2021 annual report.

Song Joon Country Garden

Mr. Song Joon will remain with the company even after retiring as managing director

Mr Yang is also the Group’s Regional President and was appointed Non-Executive Director of CG Services, Hong Kong Listed Property Management Division of Country Garden in March 2018.

Appointed as Executive Director in May 2013, Mr. Song has overseen the operation, management and development of the Group’s real estate projects in selected geographies. He also serves as the head of the Group Structural Adjustment and Optimization Office.

Among the new executive officers, Cheng, 42, is responsible for group-wide sales and marketing, investment planning, product design and brand management. He also oversees the Risk Management, Audit and Supervision Center, Commercial and Cultural Tourism Group.

Wu, 49, who leads Country Garden’s financial and capital management, was appointed Group Vice President and Chief Financial Officer in 2014 and 2017 respectively. Before he joined the Group in 2005, he was in charge of accounting and audit management at Hubei Branch of China Construction Bank.

According to the announcement, both Cheng and Wu are entitled to a base annual salary of RMB 1 million ($143,145) and a year-end management bonus determined by the board of directors.

financial difficulties

Country Garden Holdings faces 524.25 billion yuan ($75.2 billion) of maturing debt by mid-2023, based on interim reports by June 30.

On December 11, Yang Huiyan, the daughter of Group Chairman Yang Guoqiang, agreed to sell a portion of its controlling interest in Country Garden Services Holdings for approximately HK$5.06 billion, making Country Garden We have made our third major stock sale within Empire.

In November, S&P Global downgraded Country Garden’s long-term issuer credit rating to B+ from BB, but the developer requested the credit rating agency to withdraw the rating later that month.

“In our view, resolving upcoming bond maturities and bank syndicated loans will require heavy reliance on internal resources, which could undermine Country Garden’s existing cash buffers.” said S&P Global in its November report.

Country Garden shares are down about 60% year-to-date, closing at HK$2.68 per share on Friday.

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