A court has issued a final ruling on a case where Bank of Jiujiang sought repayment of loans from a SUNAC subsidiary, ordering the developer to repay billions in principal and associated costs.
According to a disclosure by Sunac, the company received the Civil Judgment from the Jiujiang Intermediate People's Court in Jiangxi Province. The key rulings are as follows:
1. Dali Forum Investment Management Co., Ltd. is ordered to repay the principal of 1.69 billion yuan plus interest, penalties, compound interest, and liquidated damages totaling 755.76 million yuan to Bank of Jiujiang, amounting to a combined 2.45 billion yuan.
2. Dali Forum must pay 90,000 yuan in attorney fees to Bank of Jiujiang.
3. Bank of Jiujiang is granted priority in compensation from the proceeds of the discounting, auction, or sale of eight land-use rights owned by Dali Forum, located west of Shangmo Village in Dali Town, Dali City, within the scope of the claims established in the first and second rulings.
4. Bank of Jiujiang is granted priority in compensation from the proceeds of the discounting, auction, or sale of the 100% equity in Dali Forum held by Shili Sunac, within the scope of the claims established in the first and second rulings.
5. Yunnan Shili Sunac Cultural Tourism Development Co., Ltd., Yunnan Shili Holding Group Co., Ltd., Peng Yuxing, and Zhang Ya bear joint and several guarantee liability for Dali Forum's repayment obligations within the scope established in the first and second rulings.
6. Yunnan Sunac Real Estate Development Co., Ltd. bears joint and several guarantee liability for 60% of Dali Forum's repayment obligations within the scope established in the first and second rulings.
7. Other litigation requests by Bank of Jiujiang are dismissed.
SUNAC stated that this litigation will have a certain adverse impact on the company's production, operations, and debt repayment capacity. The company is actively communicating and negotiating with relevant institutions and creditors, striving to formulate and implement solutions and considering seeking an overall resolution plan to properly address the related issues.
In April 2026, Sunac disclosed that Bank of Jiujiang had sued its Yunnan subsidiary over financial loan contract disputes. The Jiujiang Intermediate People's Court issued a civil ruling to freeze 2.446 billion yuan in bank deposits or seize equivalent property rights from the applicant Dali Forum and other related SUNAC companies, as well as Peng Yuxing and Zhang Ya.
It is noteworthy that the loan in question was extended by Bank of Jiujiang through Bohai Trust as a channel. Bank of Jiujiang, headquartered in Jiujiang City, Jiangxi Province, has no branches or business outlets in Yunnan Province. The bank provided the loan funds, while Bohai Trust acted as a channel, collecting service fees without bearing substantive risk.
Following initial media reports on Bank of Jiujiang's pursuit of nearly 25 billion yuan from Sunac, the China Securities Regulatory Commission highlighted this matter in its feedback on the bank's private placement. The regulator requested the bank to supplement disclosures on the latest progress of the litigation, clarify whether it constitutes a major lawsuit, assess its potential significant adverse impact on the issuance, and explain its effects on the bank's operations, financial condition, and regulatory indicators.
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