Guangzhou Wanda Cultural Tourism City Investment Co., Ltd., has been petitioned for bankruptcy liquidation.

The Paper News Reporter Li Xiaoqing

On April 1st, Sunac China Holdings Limited announced that its significant subsidiary, Guangzhou Wanda Cultural Tourism City Investment Co., Ltd., has been filed for bankruptcy liquidation.

According to the announcement, this matter stems from a construction contract dispute between China Coal Jiangnan Construction Development Group Co., Ltd. and Guangzhou Wanda. The relevant civil judgment has taken effect, and Guangzhou Wanda is required to pay approximately 9.8907 million yuan plus interest. During the enforcement process, the court found no assets under Guangzhou Wanda that could be seized, and has ruled to terminate this enforcement procedure.

Subsequently, China Coal Jiangnan, based on relevant provisions of the Enterprise Bankruptcy Law of the People’s Republic of China, applied to the Guangzhou Intermediate People’s Court for bankruptcy liquidation of Guangzhou Wanda on the grounds that Guangzhou Wanda is unable to settle its due debts and is evidently insolvent.

The announcement states that the court has not yet approved the acceptance of this bankruptcy application. Guangzhou Wanda will submit an objection to the court claiming that the conditions for bankruptcy liquidation are not met. A hearing will be held by the court.

Sunac China Holdings stated that the company’s daily management, corporate governance, and operations have not been affected by the bankruptcy filing of the subsidiary. Regarding this bankruptcy matter, Guangzhou Wanda will also submit an objection to the court asserting that the conditions for bankruptcy liquidation are not met. It is expected that the bankruptcy filing of this subsidiary will not have a significant adverse impact on the company’s ongoing corporate bond restructuring. The company is actively communicating and negotiating with relevant institutions and creditors to develop and implement solutions to address the issues and strives to resolve the related debts properly.

According to Qichacha, Guangzhou Wanda Cultural Tourism City Investment Co., Ltd. was established on August 12, 2014. The company’s core asset is Guangzhou Sunac Cultural Tourism City (formerly Guangzhou Wanda City), with a total investment of about 50 billion yuan. Shareholders include Sunac China Holdings Limited holding 51%, Tianjin Sunac Shengda Cultural Tourism holding 44.59%, and Dalian Wanda Wexin holding 4.41%.

Previously, Sunac China (01918.HK) disclosed its 2025 performance, showing that in 2025, the group’s contract sales, including its joint ventures and associates, will amount to approximately 36.84 billion yuan, a decrease of 21.8% year-on-year; revenue will be about 45.12 billion yuan, down 39% year-on-year; gross loss of about 640 million yuan, compared to a gross profit of about 2.89 billion yuan in 2024; net loss attributable to owners of the parent will be approximately 12.33 billion yuan, narrowing by about 52% year-on-year.

As of December 31, 2025, Sunac China owed approximately 107.3 billion yuan in principal on maturing loans that remain unpaid, which may lead to demands for early repayment of about 37.06 billion yuan of principal. As of the date of this report, Sunac China’s overdue principal on maturing loans is approximately 110.8 billion yuan, with a total loan principal of about 32.25 billion yuan potentially subject to early repayment.

Editor: Zou Shan