A court order tied to a 400-million-yuan payment has added another restriction on high consumption for both R&F Properties and its founder, Li Sze Lim. In a disclosure on the evening of September 10, R&F Properties (02777.HK) reported that it, along with its legal representative and chairman, Li Sze Lim, had recently been subjected to new restrictions on high consumption. The enforcement court for this matter is the Guangzhou Tianhe District People's Court, with case number (2026) Yue 0106 Zhi 17253. The restriction order targets R&F Properties, while Li Sze Lim is listed as a related party.
This case has not only placed R&F Properties under consumption restrictions but also designated it as a dishonest person subject to enforcement, commonly known as a "laolai." The restriction and dishonesty designation stem from a financial loan contract dispute. The plaintiff is the Guangzhou Branch of Jiujiang Bank, and the defendants include four companies, among them R&F Properties and its subsidiaries. The case was filed with the Guangzhou Tianhe District Court in late June 2025.
According to the announcement, R&F Properties, as the person subject to enforcement, is required to make a one-time payment of approximately 429 million yuan to the applicant. However, the company's fulfillment status is reported as "not fulfilled at all," and the dishonesty circumstance is cited as "violation of the property reporting system." The property reporting system requires that after an applicant applies to the court for compulsory enforcement, the court sends a "Property Report Order" to the person subject to enforcement, mandating them to proactively disclose their liable property status on time and as required, thereby urging voluntary compliance. Violating this system can result in legal consequences, including being listed as a dishonest person subject to enforcement.
R&F Properties stated that it is still actively communicating with relevant institutions regarding these cases, striving to reach a proper resolution. The company said, "We will continue to monitor the progress of related events and adopt proactive measures to mitigate adverse impacts on the company's operations and debt repayment capabilities." Regarding the consumption restrictions triggered by this issue, R&F Properties also noted that it is understanding and communicating with relevant parties, adding that the restrictions on high consumption for the company and its chairman, Li Sze Lim, have not yet caused significant adverse effects on daily operations or debt repayment capacity.
Data from Tianyancha shows that R&F Properties now has 210 records of consumption restriction orders and 75 records as a dishonest person subject to enforcement. Beyond these restrictions and the dishonesty designation, the company recently received an administrative warning. The announcement reveals that R&F Properties, as a corporate bond issuer, failed to promptly disclose overdue interest-bearing debts and major litigation or arbitration matters, breaching relevant regulations. Li Sze Lim, then chairman, and Hu Jie, then information disclosure officer, were found to have failed in ensuring the company fulfilled its disclosure obligations and bore primary responsibility for the matters. Consequently, the Guangdong Regulatory Bureau of the China Securities Regulatory Commission decided to issue warning letters to R&F Properties, Li Sze Lim, and Hu Jie.
The repeated designations as a dishonest person reflect R&F Properties' still-struggling operations and its massive debt burden. As of mid-2026, the company's revenue from property development reached 5.424 billion yuan, with rental income from investment properties at approximately 343 million yuan. Its net loss widened to about 5.307 billion yuan, compared with a net loss of roughly 4.1 billion yuan in the same period of 2025. Meanwhile, total bank borrowings, domestic bonds, senior notes, and other loans stood at 106.589 billion yuan, with about 91.295 billion yuan due for repayment within the next twelve months.
Yet the company held only around 2.6 billion yuan in total cash, including restricted cash. As of the reporting period's end, R&F Properties had failed to repay certain bank and other borrowings totaling approximately 43.831 billion yuan as scheduled, and a combined principal of 77.154 billion yuan in bank and other loans was either in default or cross-default. The company has received various demand letters, notices, and legal correspondence related to these defaults. Additionally, R&F Properties is involved in multiple litigation cases concerning unpaid borrowings, construction disputes, and other matters.