Wongtee International(SZ:000056) Shen Zhen Shang Bao·2025-10-08 10:04Core Viewpoint - The ownership of the Crystal Island International Shopping Center (Shenzhen Royal Court Plaza) has been judicially determined to be auctioned for debt repayment, significantly impacting the company's assets and operations [1][4]. Group 1: Judicial Proceedings and Debt Situation - On October 8, 2023, Royal Court International announced that its subsidiary, Shenzhen Rongfa Investment Co., Ltd., is subject to a judicial auction starting at a price of 3.053 billion yuan to settle debts owed to Guangyao Xialan (Shenzhen) Investment Co., Ltd. [1] - The loan of 3 billion yuan taken by Rongfa Investment from CITIC Trust was secured by the shopping center and related land use rights, with various guarantees provided by Royal Court International and its subsidiaries [4]. - Due to policy changes, the loan could not be renewed, leading to a lawsuit by CITIC Trust and subsequent enforcement actions by the Shenzhen Intermediate People's Court [4][5]. Group 2: Financial Impact and Company Performance - The Crystal Island International Shopping Center generated 369 million yuan in revenue in 2024, accounting for 56.03% of the company's total revenue, which will be lost following the asset transfer [6]. - As of December 31, 2024, the estimated value of the shopping center was 5.7498 billion yuan, while the company's net assets were projected to drop to approximately -1.921 billion yuan after the asset transfer [6]. - Royal Court International has reported losses for five consecutive years from 2020 to 2024, with total losses exceeding 4.4 billion yuan, and a decline in revenue of 18.48% year-on-year in the first half of 2025 [9].