RiseSun reports significant half-year loss as debt restructuring continues

RiseSun Real Estate Development Company Limited reported a consolidated net loss attributable to shareholders of CNY 2.87 billion for the first half of 2025, a significant increase from the CNY 316.59 million loss in the same period of 2024. Total operating revenue for the period decreased by 28.19% to CNY 14.18 billion. The company's asset-liability ratio stood at 90.06%, with total assets declining to CNY 148.37 billion.

These financial results coincide with ongoing debt restructuring plans. The company disclosed a "debt-for-equity" scheme, involving the transfer of up to 20% equity in its "Zhi Xiang Platform" (valued at CNY 46 billion) to creditors for up to CNY 92 billion in debt. A similar scheme is planned for the "Zhi Qi Platform" (valued at CNY 34 billion) for up to CNY 68 billion in debt. Additionally, the company incurred a credit impairment loss of CNY 379.08 million and an asset impairment loss of CNY 558.46 million for the first half of 2025, stemming from inventory writedowns and anticipated credit losses on receivables.

Further financial strain is evident in the disclosure of new overdue debt totaling CNY 1.487 billion. The company is actively coordinating with financial institutions for debt extensions. Additionally, a subsidiary, Shanxi Rongsheng Real Estate Development Co., Ltd., is facing a lawsuit for CNY 54.12 million in unpaid construction fees and related interest.