RiseSun faces new lawsuit, mounting debt, and expands guarantees

RiseSun Real Estate Development announced a lawsuit against its subsidiary, Foshan Shunde Fosheng Real Estate Co., Ltd., for unpaid engineering fees and interest totaling 47.15 million yuan. This adds to approximately 482 million yuan in other litigation. Concurrently, the company reported an increase in overdue debt by 536 million yuan.

To support its operations, RiseSun approved a 2026 guarantee plan of up to 32 billion yuan, with 27 billion yuan for subsidiaries with over 70% asset-liability ratios. This includes guarantees for Langfang Economic Development Zone Risesun Real Estate Development Co., Ltd. (260 million yuan) and Ningbo Ronghao Real Estate Co., Ltd. (500 million yuan). The total outstanding guarantees stand at 44.245 billion yuan, with 12.488 billion yuan overdue.

The company also outlined a 2026 financial assistance plan for project companies, capped at 100 million yuan, and projected 2026 related party transactions with Risesun Construction Engineering Co., Ltd. and its subsidiaries, for labor services, totaling up to 300 million yuan. Additionally, the company is renewing its appointment of Beijing Cheng Yu Certified Public Accountants as its 2025 auditor. Vice president Jing Zhonghua resigned, with Wang Xiaohui and Mu Yang appointed as new vice presidents.