Fangyuan Real Estate announces latest developments in two lawsuits, with overdue debts totaling over 8 billion yuan

Viewpoint News: On April 2, Guangzhou Fangyuan Real Estate Development Co., Ltd. released an announcement disclosing the latest developments in two lawsuits and the company’s debt payment overdue situation.

According to the announcement, in one loan contract dispute case (case number (2026) Yue 06 Min Zong 4605), the appeal was automatically withdrawn by Fangyuan Real Estate in the second instance. The first-instance judgment required Guangzhou Yuecheng Industrial Co., Ltd. to repay RMB 18 million in principal and interest, as well as liquidated damages, with Fangyuan Real Estate and others bearing joint and several liability for repayment. Fangyuan Real Estate had previously appealed, requesting an adjustment to the liquidated damages standard and responsibility for the announcement fees.

In the other financial loan contract dispute case (case number (2025) Yue 06 Min Chu 35), the second-instance court dismissed the appeal and upheld the original judgment. The first-instance judgment required Shanghai Yuanxin Business Services Co., Ltd. to repay approximately RMB 155 million in principal and interest, etc., with Fangyuan Real Estate bearing joint and several liability for repayment.

The announcement also disclosed that, affected by factors such as the macroeconomic environment and industry environment, Fangyuan Real Estate’s liquidity experienced periodic tightness, resulting in some debts not being repaid on schedule.

As of March 31, 2026, at the consolidated statement level, Fangyuan Real Estate’s principal of debts that had reached maturity but remained unpaid totaled RMB 6.62B; on the external guarantee front, the principal of debts that had reached maturity but remained unpaid totaled RMB 1.46B.

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