After a conference call with investors on March 26, Yuzhou Management has assured its group of investors that their cash flow and balance sheets remain strong even though the company predicted a 94% year-over-year decline for their 2020 fiscal year. The company’s offshore notes fell deeply on the morning of the call creating obvious concern for investors, but management reassured investors by explaining that short sellers were dispersing false information. However, Youzhou can not comment further on the status of this information until their annual results are officially released on March 30. 

The Covid-19 pandemic resulted in low selling prices and the delay of development and delivery of property projects in 2020 for Yuhou impacting their cash flow and profit, but the company expects dividend payments to remain on par with 2019. Click through to read our Asia Core Credit team’s analysis of the call including a detailed examination of the company’s corporate bonds and senior notes as well as Yuzhou’s capital structure: ADD LINK

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