Shirongzhaoye(SZ:002016) Nan Fang Du Shi Bao·2025-08-01 12:32Core Viewpoint - The recent announcement from Zhuhai-based real estate company Guangdong Shiyong Zhaoye Co., Ltd. reveals that its founder, Liang Jiarong, is required to compensate the company approximately 1.85 billion RMB (around 259 million USD) following a four-year international lawsuit [1][20]. Group 1: Company Background - Guangdong Shiyong Zhaoye was founded by Liang Jiarong, who was once known as the "richest man in Zhuhai" [8]. - The company went public in 2008 and is recognized for developing notable properties such as Riviera and Shiyong Mingzhu [10]. - Liang Jiarong has maintained a low profile, often delegating public appearances to his father, Liang Shezheng, who was listed as the richest man in Zhuhai multiple times [10][12]. Group 2: Legal Issues and Developments - Liang Jiarong has faced serious legal challenges, including allegations of money laundering and organized crime since 2016 [11][13]. - In 2021, the company initiated a lawsuit against Liang Jiarong in the U.S. for debt recovery, claiming he misappropriated company assets totaling around 2 billion RMB [16][17]. - The lawsuit has seen various developments, including a preliminary ruling in 2025 that ordered Liang Jiarong to pay 1.85 billion RMB, although the ruling is not yet enforceable [20][24]. Group 3: Company Financial Performance - The financial performance of Guangdong Shiyong Zhaoye has been declining, with revenues dropping from 29.48 billion RMB in 2020 to 9.81 billion RMB in 2024, marking a 36.63% year-on-year decline [22]. - The company reported a revenue of 1.90 billion RMB and a net profit of 6.09 million RMB in the first quarter of 2025, indicating ongoing financial pressure [22]. Group 4: Future Outlook - The company is now under the control of Zhuhai's state-owned enterprise after a significant share acquisition, marking a shift in its governance [20][21]. - The potential recovery of 1.85 billion RMB could significantly improve the company's financial situation, but uncertainties remain regarding the execution of the court ruling and the actual recovery of assets [22][24].