(Yicai) June 20 -- Private Chinese builder RiseSun Real Estate Development announced it will pay off three debts with physical assets in the past month as its cash flow remains tight.

RiseSun will repay a CNY1.1 billion (USD149 million) debt to its property management subsidiary Roiserv Lifestyle Services with 12,689 parking spaces, 5,479 storage rooms, and 112 residential, apartment, and commercial units across China, Roiserv announced on June 18.

RiseSun’s accounts receivable totaled CNY2.1 billion last year, exceeding its operating income of CNY2 billion, according to the company’s latest annual financial statement.

The pair decided to settle the debt repayment with a physical asset transfer because RiseSun has “suffered from the property market downturn and credit and liquidity crunch, and was therefore unable to settle the relevant receivables,” Roiserv noted.

RiseSun has settled two other debts with physical assets in the past month. In late May, it used two hotels in Hainan and Henan provinces to pay off a CNY1.5 billion loan to suppliers. Earlier this month, it transferred land, commercial houses, and hotels in Hebei province to repay CNY811 million (USD112.9 million) in bank claims and supplier arrears.

In 2023, RiseSun defaulted on onshore and US dollar-denominated debts. As of the end of last year, its total overdue borrowings reached CNY8 billion, with an asset-to-liability ratio of over 89 percent.

RiseSun reported a net loss of nearly CNY900 million in the first quarter of this year. As of March 31, its cash and cash equivalents were CNY1.7 billion, its non-current liabilities due within one year were CNY27.4 billion (USD3.8 billion), its accounts payable were CNY27.5 billion, and its interest payable was CNY5.7 billion.

Editors: Tang Shihua, Futura Costaglione