Guangzhou R&F Properties Co., Ltd. (R&F Properties) has disclosed a series of litigation developments and enforcement measures that, in aggregate, expose the group to at least RMB5.06 billion (USD693 million) in quantified court-awarded and claimed liabilities.
Civil judgment in Haikou • The Haikou Intermediate People’s Court ordered Hainan R&F Properties Development Group Co., Ltd. to repay a bank RMB944.15 million in loan principal, together with RMB55.10 million in interest, penalty interest, compound interest and fees, bringing the total to RMB999.25 million (USD136.9 million). • The lender was granted priority recourse to the land use rights, buildings, construction in progress and parking spaces of the R&F Shoufu project in Haikou, as well as 99.8004% of the equity in Hainan Hangxiao Real Estate Development Co., Ltd. • Guangzhou R&F Properties and Hainan R&F Tourism Development Co., Ltd. were held jointly and severally liable for the obligations.
Two new lawsuits in Guangzhou • Lawsuit 1: A commercial bank is claiming repayment of RMB908.38 million in loan principal, RMB117.77 million in interest, RMB674.14 million in advances under a letter of guarantee and RMB8.09 million in guarantee fees, totalling RMB1.71 billion (USD235.2 million), with additional unspecified penalty interest. The bank seeks priority over pledged 100% equity in one subsidiary and 45% equity in a project company. • Lawsuit 2: The same bank is demanding RMB1.84 billion in advances under a letter of guarantee, RMB495.22 million in penalty interest, RMB20.10 million in handling fees and RMB1.38 million in legal fees, amounting to RMB2.36 billion (USD323.4 million). Priority over the same equity collateral is requested.
Combined exposure Quantified amounts across the concluded Haikou case and the two Guangzhou cases sum to RMB5.06 billion, excluding additional penalty interest not specified in Lawsuit 1. All defendants—Guangzhou R&F Properties, Beijing R&F Properties Development Co., Ltd., Tianjin Yaohua Properties Development Co., Ltd. and Guangzhou Fuhong Investment Consulting Co., Ltd.—are subject to joint and several liability claims.
High-consumption restriction Separately, the Guangzhou Intermediate People’s Court issued Consumption Restriction Order (2025 Yue 01 Zhi No. 5974) against R&F Properties and its legal representative and chairman, Mr. Li Sze Lim. The order prohibits a range of non-essential high-value expenditures, including air travel in premium classes, luxury hotel stays, real-estate purchases and enrollment of children in high-fee private schools. The company states that the measure has not materially affected its day-to-day operations or debt-servicing capacity.
Next steps R&F Properties reports that it is engaging with relevant parties to seek appropriate resolutions and will update the market in line with regulatory requirements. Investors are advised to monitor further disclosures for updates on the litigation outcomes and any potential financial impact.