JY Grandmark Holdings disclosed a May 2026 business update highlighting liquidity stress, weak sales and rising litigation exposure, while its auditor’s disclaimer of opinion continues to weigh on financing prospects. Key points are as follows:

1. Debt profile and defaults • Total bank and other borrowings stood at RMB3.12 billion as at 31 May 2026. • RMB2.96 billion—or 94.6% of total borrowings—was in default and could be called for immediate repayment. • Three major contested loans are already before the courts: – Bank of China Zhaoqing Branch: RMB56.22 million outstanding; final judgment issued but not enforced. – Ping An Bank Guangzhou Branch: RMB580.00 million outstanding to Guangzhou Jingyu Real Estate; related guarantee of up to RMB510.00 million provided by an affiliate; pre-trial hearing held in March 2026. – Guangzhou Bank Zengcheng Branch: RMB111.10 million outstanding to Guangzhou Jingsheng Real Estate; guarantee provided by Guangzhou Yinong. • No other lenders had accelerated repayment by 31 May 2026. Management is negotiating renewals, extensions and a broader debt-restructuring plan.

2. Operating performance • Aggregated contracted sales for the five months to May totalled RMB29.40 million, representing just 9.80% of the full-year 2026 sales target. • Management cited weak mainland China macro-economic recovery, subdued buyer sentiment and concentration in non-tier-one cities as key drags on both pricing and sales volumes.

3. Litigation exposure • The Group was involved in 244 lawsuits as at 31 May 2026. – Borrowing-related: 3 cases with a disputed amount of RMB826.14 million. – Operating-related: 241 cases with disputed claims of RMB1.42 billion. – Judgments have been delivered in 188 of the operating-related cases, requiring payments of RMB263.27 million; enforcement actions have commenced on 95 of these, covering RMB181.44 million.

4. Auditor’s disclaimer and potential impact McMillan Woods (Hong Kong) issued a disclaimer of opinion on the FY 2025 accounts, citing uncertainties over going-concern status. Management and the Audit Committee maintain that the going-concern basis remains appropriate but acknowledge that the disclaimer could: • Complicate negotiations with lenders and suppliers; • Intensify financing pressure in an already tight market; • Trigger potential asset-valuation adjustments or impairments if liquidity does not improve.

Shareholders and investors are advised to exercise caution; the disclosed figures are management accounts and remain unaudited.