RiseSun unveils major debt restructuring plan, selling assets to cut liabilities

RiseSun Real Estate Development has unveiled a significant debt restructuring plan, approved by its board of directors on December 12, 2025. The strategy aims to revitalize company assets, mitigate financial liabilities, and optimize its debt structure. Key elements include the repurchase of 100% equity in Guangyuan Metal Products and Shengchi Metal Products for 2.156 bn yuan, partially offset by a 100m yuan debt offset and 2.056 bn yuan in accounts receivable.

A total of 756m yuan of these receivables will be sold to Langfang Caida Asset Investment and Operation for 729m yuan to address a 700m yuan debt owed to China Cinda Asset Management. Additionally, RiseSun plans to sell 326m yuan in receivables to Langfang Caida and up to 56m yuan in assets to settle debts of its subsidiaries, ShengHong Real Estate and Yiyi Landscape, totaling 383m yuan. The plan also includes selling 974m yuan in receivables to Langfang Caida for 974m yuan to mitigate debts with Beijing Chaoan Landscape Engineering and other financial obligations.

To support this restructuring, RiseSun will provide a joint and several liability guarantee of up to 800m yuan for Langfang Caida's financing with financial institutions, as Langfang Caida will assume repayment responsibilities for RiseSun's subsidiaries. This guarantee, along with the entire debt restructuring, will be submitted for shareholder approval. As of the announcement date, RiseSun's total actual guarantees amounted to 44.226 bn yuan, representing 297.71% of its latest audited net assets, with overdue guarantees totaling 12.148 bn yuan.