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Risesun Real Estate Development Co (SZSE:002146) Financial Strength : 1 (As of Mar. 2025)


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What is Risesun Real Estate Development Co Financial Strength?

Risesun Real Estate Development Co has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Risesun Real Estate Development Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Risesun Real Estate Development Co did not have earnings to cover the interest expense. Risesun Real Estate Development Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.51. As of today, Risesun Real Estate Development Co's Altman Z-Score is 0.22.


Competitive Comparison of Risesun Real Estate Development Co's Financial Strength

For the Real Estate - Development subindustry, Risesun Real Estate Development Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Risesun Real Estate Development Co's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Risesun Real Estate Development Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Risesun Real Estate Development Co's Financial Strength falls into.


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Risesun Real Estate Development Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Risesun Real Estate Development Co's Interest Expense for the months ended in Mar. 2025 was ¥-354 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥14,568 Mil.

Risesun Real Estate Development Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*1.598/-353.766
=0.00

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Risesun Real Estate Development Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(27506.461 + 14568.259) / 27945.68
=1.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Risesun Real Estate Development Co has a Z-score of 0.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.22 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Risesun Real Estate Development Co  (SZSE:002146) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Risesun Real Estate Development Co has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Risesun Real Estate Development Co Financial Strength Related Terms

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Risesun Real Estate Development Co Business Description

Traded in Other Exchanges
N/A
Address
Cheung Yun Road 81, Rongsheng Development Building, Langfang, CHN, 065000
Risesun Real Estate Development Co Ltd is a real estate development company based in China. The company is engaged in the development of residential buildings and architectural design. Its other business operations consist of property management, hotel management, commercial operation and investment management.
Executives
Bao Li Jie Directors, executives
Geng Jian Ming Director
Gu Yong Jun Executives
Zou Jia Li Supervisors
Zhang Xing Xing Securities Affairs Representative
Liu Shan Directors, executives
Jing Zhong Hua Executives
Li Ai Hong Supervisors
Yang Shao Min Director
Li Wan Le Directors, executives
Chen Jin Hai Directors, executives
Feng Quan Yu Directors, executives
Li Bing Securities Affairs Representative
Geng Jian Fu Director
Gao Xue Jun Supervisors

Risesun Real Estate Development Co Headlines

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