RiseSun subsidiary Langyashan hotel secures inter-company financing guarantee

RiseSun Real Estate Development Co., Ltd. announced that its wholly-owned subsidiary, Langyashan Hotel, will receive a joint and several liability guarantee for new financing up to 9m yuan, with a term not exceeding 48 months. This guarantee will be provided by other wholly-owned subsidiaries: Chuzhou Risesun Health & Tourism Development Co., Ltd., Nanjing Risesun Health & Tourism Development Co., Ltd., and Risesun Health & Tourism Investment Co., Ltd. The move is intended to support the development of Langyashan Hotel, which is an indirect wholly-owned subsidiary of RiseSun.

Langyashan Hotel, established on March 28, 2018, reported a negative net asset of -4.58m yuan as of August 31, 2025, with total assets of 10.24m yuan and total liabilities of 14.82m yuan. For the first eight months of 2025, it generated operating revenue of 4.20m yuan, a total profit of 768,200 yuan, and a net profit of 884,200 yuan. Its asset-liability ratio stood at 144.72%. The company’s board believes Langyashan Hotel possesses sufficient capacity to repay the financing.

As of the announcement date, RiseSun’s total actual guarantee amount is 44.127bn yuan, representing 297.05% of its latest audited net assets. Guarantees provided by the company and its controlled subsidiaries to external parties not consolidated in financial statements amount to 7.752bn yuan (52.19% of net assets), with overdue guarantees totaling 10.251bn yuan. Investors are advised to pay attention to the associated guarantee risks.