Core Viewpoint - The article discusses the challenges faced by Shoukai Co., a prominent real estate company in Beijing, highlighting its financial difficulties, legal disputes, and declining market position, which have led to significant losses and operational struggles [2][9][11]. Financial and Legal Issues - Shoukai Co. has recently had two bank accounts frozen, totaling nearly 200 million yuan, due to lawsuits related to construction payments [2][5][6]. - The company reported a net loss of 8.14 billion yuan in 2024, with a cumulative loss of nearly 15 billion yuan over the past three years [11]. - Legal disputes have resulted in a total of 1.425 billion yuan in claims against the company, representing 10.5% of its net assets as of the end of 2024 [6][11]. Operational Challenges - The company identified four major operational challenges: significant decline in sales performance, ongoing liquidity issues, severe profit decline, and shrinking business scale [9][10][11]. - Sales revenue dropped by 49.31% year-on-year in 2024, with a total revenue of 24.213 billion yuan [11]. - The gross margin fell from 19.81% in 2021 to 4.80% in 2024, while net profit margin shifted from 2.46% to -38.90% during the same period [11]. Market Position and Competition - Shoukai Co. has seen its market share in Beijing decrease, dropping from the top sales position to fifth place in 2024, and further down to tenth place in early 2025 [15][16]. - The company faces intense competition from state-owned enterprises and other major players in the real estate market [15][16]. Strategic Responses - In response to its challenges, Shoukai Co. has initiated measures to improve its situation, including project liquidation, cost reduction, and organizational restructuring [14][15]. - The company plans to achieve sales of 278 billion yuan and new construction of 260,000 square meters in 2025, aiming to stabilize its operations [17].

Core Viewpoint - The company, Shoukai Co., has faced significant challenges, including litigation issues and financial difficulties, leading to a substantial decline in performance and market position in the real estate sector [1][6][10]. Financial Issues - Shoukai Co. reported a revenue of 24.21 billion yuan in 2024, a year-on-year decrease of 49.31%, with a net loss of 8.14 billion yuan [7]. - The company has experienced consecutive annual losses, totaling nearly 15 billion yuan over the past three years [7]. - The gross margin has dropped from 19.81% in 2021 to 4.80% in 2024, while the net margin fell from 2.46% to -38.90% during the same period [7]. Legal Challenges - Two bank accounts of Shoukai Co. were frozen, totaling approximately 199 million yuan, due to litigation related to construction payment disputes [4][5]. - The company is involved in multiple lawsuits, with claims amounting to 1.425 billion yuan, which represents 10.50% of its net assets as of the end of 2024 [5]. Operational Difficulties - The company identified four major operational challenges: declining sales performance, tight cash flow, decreasing profitability, and shrinking business scale [6]. - Sales in the Beijing market have significantly decreased, with the company dropping from the top sales position to fifth place in 2024 and further down to tenth place in early 2025 [10]. Strategic Responses - In response to its challenges, Shoukai Co. has initiated measures to improve its situation, including project liquidation, cost reduction, and organizational restructuring [9]. - The company plans to achieve a sales area of 1.55 million square meters and a contract amount of 27.8 billion yuan in 2025 [12]. Financing Efforts - Despite ongoing losses, Shoukai Co. has announced several financing plans, including a proposed issuance of up to 35 billion yuan in debt instruments to alleviate liquidity issues [11]. - The company has also secured a 1.5 billion yuan loan from its parent group, which is set to mature in April 2025 [12].