Guangzhou R&F Properties Co., Ltd. (“R&F Properties”) disclosed three material developments affecting its operations and credit profile: (1) new restrictions on discretionary spending for both the company and Chairman Li Sze Lim; (2) a final civil judgment requiring repayment of RMB299.00 million plus accrued interest and fees; and (3) mixed results from judicial auctions linked to an outstanding trust-loan arbitration case.
High-Level Consumption Ban The Intermediate People’s Court of Guangzhou issued Consumption Restriction Orders ((2025) Yue 01 Zhi Nos. 522–523) against R&F Properties and Li Sze Lim. Prohibited activities include air travel, premium rail seating, luxury hotel stays, property purchases, non-essential vehicle acquisitions, and other discretionary expenditures. Management reports no immediate operational disruption but is engaging regulators to lift the ban.
Final Judgment on Bank Loan Dispute On 24 January 2024, the Intermediate People’s Court of Guangzhou ordered R&F Properties and three affiliates to repay RMB299.00 million in principal to a commercial bank, together with default interest, compounded interest, and legal costs ((2023) Yue 01 Min Chu No. 2649). The Guangdong Higher People’s Court upheld the ruling on 15 July 2024 ((2024) Yue Min Zhong Nos. 3296–3297). An Enforcement Notice issued on 30 August 2024 ((2024) Yue 01 Zhi Bao No. 1902) and a subsequent Consumption Restriction Order on 30 September 2026 compel immediate compliance; the lender holds priority over proceeds from mortgaged land and property assets.
Trust-Loan Arbitration: Asset Disposal Update In a separate trust-loan dispute involving several subsidiaries, court-mandated auctions of collateral at R&F Xiangcheng Mansion (No. 52 Gucheng East Road, Xiangshan District) produced partial sales. Units sold include: • Building 20: Units 302, 402, 602 • Building 23: Units 201, 401, 702, 802, 902 • Building 24: Units 404, 902 • Building 25: Unit 1704 • Building 28: Units 401, 402, 1602 • Building 31: Unit 1801
Remaining assets failed to attract qualifying bids. R&F Properties is negotiating with the trust company to resolve outstanding obligations and intends to re-auction unsold units if required.
Management Actions and Disclosure The company states it is actively communicating with all counterparties to mitigate financial exposure and maintain normal operations. Further updates will be released in accordance with Shanghai and Hong Kong stock-exchange requirements. Investors are advised to monitor subsequent disclosures for developments in litigation, enforcement actions, and asset disposals.