Real Estate Group Rongsheng Property Co., Ltd. (Rongsheng Property) recently issued a significant announcement indicating that as of September 30 this year, the total principal amount of loans not repaid by the company amounted to 112.757 billion yuan.
On October 25, Rongsheng Property issued a significant announcement. The announcement revealed that in September of this year, the company added 5.06 billion yuan in unpaid loan principal. As of September 30, the total amount of unpaid loan principal for the company reached 112.757 billion yuan. Among them, the outstanding amounts exceeding 100 million yuan of interest-bearing debts include bank loans of 21.957 billion yuan, non-bank financial institution loans of 73.336 billion yuan, and other interest-bearing debts of 17.315 billion yuan.
According to news from The Paper on October 26, Rongsheng Property has been listed as an untrustworthy person multiple times between 2023 and 2024, involving multiple cases. Rongsheng Property stated that to safeguard bond repayment, the company provided repayment guarantees for bonds through holding meetings with bondholders using the income rights from self-owned property assets and property sales. The bonds involved include “H6 Rongdi 01,” “20 Rongsheng 02,” “H1 Rongsheng 01,” “H1 Rongsheng 03,” “H1 Rongsheng 04,” and “H1 Rong 1优.”
In addition, Rongsheng Real Estate Group is facing a lawsuit, with Shanghai International Trust Co., Ltd. as the plaintiff and defendants including Kunming Rongsheng City Investment Co., Ltd., Rongsheng Real Estate Group Co., Ltd., etc., involving an amount of 2.271 billion yuan for a financial loan contract dispute. The plaintiff requests repayment of principal, interest, penalty interest, and prioritization of rights to collateral and accounts receivable.
On October 25, Rongsheng Property also announced that several of its bonds will be suspended from trading starting October 28, 2024. The bonds affected by the suspension are abbreviated as H Rongsheng 05, H Rongsheng 07, PR Rongsheng 01, and 20 Rongsheng 02.
The Beijing News disclosed on October 25 that Rongsheng Property has pledged to strictly comply with laws and regulations and fulfill disclosure obligations during the suspension period. The company will timely announce the progress of relevant matters and apply for the resumption of trading for suspended bonds once determined.
Netizen “CatDoesntEatCheese” commented, “The suspension is only part of Rongsheng’s debt restructuring. The key is whether they can optimize the debt structure and alleviate debt repayment pressure through this opportunity. If not handled well, it may trigger a series of chain reactions, leading to a break in the funding chain.”
“Sunshine” believes, “The massive debt accumulated during the dividend period has reached a crisis point as the economy contracts! It’s time to test the repayment ability! Money has turned into reinforced concrete! After the bubble bursts, reinforced concrete becomes even less valuable! The downturn is still ongoing! The various stimuli only slow down the decline! It is inevitable for the bubble to return to rationality!”
Netizen “Momo” stated, “It’s already a technical bankruptcy.”
“Qin Zhengxiang, Ping An Bank, 13648861144” mentioned, “The real estate sector has not hit bottom yet, the shock is still to come!”
Public information shows that Rongsheng Real Estate Group Co., Ltd. was established on January 31, 2003, registered at the Market and Quality Supervision Bureau in Xiqing District, Tianjin. The company’s scope of business includes real estate development and sales of commercial housing, property management, interior and exterior decoration, etc. It has a registered capital of 15 billion yuan, fully owned by Beijing Rongsheng Holding Group Co., Ltd.
In July 2024, risk information indicates that Rongsheng Real Estate Group Co., Ltd. currently has 580 records of executed persons, with a total executed amount exceeding 29.2 billion yuan. Additionally, the company has multiple restrictions on consumption orders and information on untrustworthy persons (debtors).