RiseSun guarantees subsidiary's financing amidst high leverage

RiseSun Real Estate Development announced it will provide a joint and several liability guarantee for its subsidiary, Yiyang Rongshengcheng Real Estate Development, for a financing amount of up to 40 million yuan. This guarantee extends existing financing with National Trust, which has an outstanding principal balance of 26.2457 million yuan. The guarantee period will not exceed 60 months, with Yiyang Rongshengcheng also providing mortgage collateral using its own assets.

Yiyang Rongshengcheng, established on November 18, 2019, is 98.78% indirectly owned by RiseSun. As of October 31, 2025, Yiyang Rongshengcheng's asset-liability ratio stood at 98.40%, with total assets of 60,548.95 yuan and total liabilities of 59,581.32 yuan. Its net assets were 967.63 yuan, and for the period of January to October 2025, it reported a net loss of 130.19 yuan.

As of the announcement date, RiseSun's total actual guarantee amount is 44.201 billion yuan, representing 297.55% of its most recent audited net assets. Guarantees provided to entities outside the consolidated financial statements amount to 7.755 billion yuan (52.20% of net assets), with overdue guarantees totaling 1.1411 billion yuan.