Lung Guangang Holdings: Arbitration Initiated by CITIC Bank Due to Financing Contract Dispute, Demanding Settlement of 3.699 Billion Yuan

MaticHoleFiller · 2026-03-24T06:01:24+00:00

Shenzhen Lunglionhold Co., Ltd. has been subjected to arbitration proceedings initiated by CITIC Bank due to disputes over a financing contract, involving principal of approximately RMB 3.699 billion and related fees. Lunglion stated that this litigation may impact the company's profit and loss, but will not directly affect publicly traded bonds. Meanwhile, Lunglion Group's debt restructuring has made significant progress, and the company is expected to address remaining debt through multiple approaches to facilitate the company's return to normal operations.

MaticHoleFiller

2026-03-24 06:01:24

Abstract generation in progress

On March 19, Shenzhen Longfor Holdings Co., Ltd. announced that its subsidiary was sued by China CITIC Bank for a dispute over a financing contract.

According to the announcement, Longfor Holdings’ subsidiary was involved in arbitration initiated by China CITIC Bank Corporation Limited over a financing contract dispute. The arbitration request involves an outstanding principal balance of approximately 3.699 billion yuan, along with interest, penalties, and other charges; China CITIC Bank demands that Longfor Holdings jointly bear the repayment responsibility for the unpaid principal, interest, penalties, and other amounts under the financing.

Longfor Holdings stated that the aforementioned litigation may have a certain impact on the company’s financial performance, but it does not involve any public market bond guarantees and will not directly affect the company’s publicly issued bonds.

Previously, Longfor Group disclosed progress on its domestic debt restructuring. As of December 30, 2025, a total of 13.66 billion yuan in bonds had been restructured through options such as cash repurchase, asset-for-debt swaps under collateralized assets, and specific asset trusts. The bonds allocated under these options exceeded 62% of the remaining principal of 21 domestic public bonds as of July 10, 2025. Significant progress has been made in the domestic debt restructuring efforts.

Longfor Group stated it will continue to promote subsequent restructuring options. It is expected that most of the domestic public bonds will be repaid through asset-for-debt swaps under single-asset trusts, secondary cash repurchases (if any), stock options, and collective asset trust debt swaps under asset-for-debt options, leading to bond cancellation. The major progress in domestic debt restructuring will help the company fundamentally resolve its debt issues and gradually restore normal production and operations.

According to the revised terms, Longfor Group will establish asset trusts for the underlying projects and assets corresponding to short-term and long-term notes to facilitate debt repayment, and will include remaining debts in equity swap options, expanding the scope of the equity swap. The original terms of the cash option and the weighted average conversion price of 6 HKD per share remain unchanged.

Reporter: Li Xiaoqing, The Paper

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