Shaanxi Xixian New Area Airport New City Development and Construction Group Co., Ltd., the issuer of "20 Airport Bond," reported that its other non-current assets reached RMB 24.093 billion at the end of 2025, a 69% increase from RMB 14.232 billion a year earlier. The company attributed the change to an accounting reclassification: completed agent construction projects that have been handed over but not yet financially settled were transferred from "inventory – development costs" to "other non-current assets – completed but unsettled agent construction assets," because their expected collection period exceeds one year. The issuer stated that this treatment complies with Accounting Standard for Business Enterprises No. 14 – Revenue and relevant Ministry of Finance notice on financial statement formats.
Receivables from these projects are all from government entrusting parties, which the issuer considers to have willingness and financial capacity to pay, with no indication of impairment. The company plans to speed up settlement audits and coordinate approval procedures to recover the funds in stages, although the overall settlement cycle typically ranges from 3 to 10 years.
Additionally, the issuer's other receivables balance at end-2025 was RMB 7.894 billion, or RMB 7.891 billion after deducting a small amount of dividend receivables. The top five debtors accounted for a combined RMB 7.623 billion, with the largest being the Airport New City Management Committee of Xixian New Area at RMB 5.5548 billion. These amounts mainly relate to related party transactions and advances for agent construction projects, with relatively long collection periods, but the debtors are stable, and the issuer expects low risk of bad debts.
The issuer also corrected the non-operating intercompany balances data previously disclosed in its annual report. As of the reporting date, total non-operating intercompany balances and fund lendings amounted to RMB 6.847 billion, representing 42.62% of consolidated net assets, all of which are not yet due and have maturity over one year. Among the top five debtors, the Airport New City Management Committee accounted for RMB 5.555 billion, Shaanxi Airport City Development Group RMB 1.063 billion, and Shaanxi Airport Rural Revitalization Co., Ltd. RMB 229 million.
Regarding dishonesty cases, the issuer itself is involved in over ten enforcement cases, and its key subsidiary, Shaanxi Xixian New Area Airport New City Anju Property Co., Ltd., is also involved in several. Some cases have been fully performed and removed from the dishonesty list, while others are still pending with no performance. The pending cases involve construction contract disputes, financial lease contract disputes, and numerous negotiable instrument recourse disputes, with enforcement amounts ranging from tens of thousands to nearly a hundred million yuan. The specific types of dishonesty include failing to perform despite having the ability, refusing to perform settlement agreements without justifiable reasons, and violating property reporting systems.
The issuer has set up a special working group to develop case-by-case disposal plans, and intends to raise funds to fulfill obligations, negotiate installment or deferred payments, and seek removal of dishonesty measures. It will also prioritize rigid debt repayments, coordinate with local governments and financial institutions to broaden financing channels, and improve liquidity. Nevertheless, Aijian Securities, in its creditor agency report, warned that the above dishonesty actions reflect certain liquidity pressure and debt disputes facing the issuer, which have adversely impacted daily fund management and external financing environment, but the amounts involved are relatively small as a percentage of net assets and have not materially affected normal operations.
The "20 Airport Bond" is a 7-year corporate bond issued in March 2020, with an outstanding balance of RMB 170 million, a coupon rate of 4.95%, and a full unconditional irrevocable joint liability guarantee provided by Shaanxi Xixian New Area Development Group Co., Ltd. Aijian Securities, acting as the creditor agent for this bond, issued this interim report and reminded investors to pay attention to related risks.