On the eve of delisting, this property company sues its founder in court

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The first real-estate property company stock to be forced delisted.

By Zeng Dongmei, China Real Estate News丨Guangzhou report

After being suspended for more than 18 months, Risesen Property Services Co., Ltd. (hereinafter “Risesen Property Services,” 01922.HK) has finally reached the step of delisting.

On the evening of March 31, Risesen Property Services issued three announcements in succession. In addition to stating that it would delay the release of its full-year 2025 results, it also disclosed that it had filed a lawsuit against its founder Huang Qingping, seeking claims for the allegedly misappropriated HKD 120 million. Another major announcement was that the Hong Kong Exchanges and Clearing Limited decided to cancel the company’s listing status with effect from April 9.

It is understood that Risesen Property Services is the property management company with the largest scale of properties under management in Nanjing. It was suspended on August 28, 2024 for failing to publish its 2024 interim results. In November 2025, the company reissued three performance reports, and in early February of this year it submitted an application for resumption of trading to the Hong Kong Stock Exchange. At the time, many investors still held relatively optimistic expectations about its resumption. Therefore, after the announcement regarding delisting was released, one investor exclaimed, “Didn’t expect that.”

Since 2021, listed property-related companies such as Blue Light Jiarui Property Services, Huafa Property Management, Rongxin Services, and Jinke Services have all been delisted in sequence, but the driving factors were privatization. Risesen Property Services, however, is the first listed property management company to be forcibly delisted by the Hong Kong Stock Exchange. Regarding relevant details about the delisting, a reporter from China Real Estate News sent an interview email to Risesen Property Services; as of the time of publication, no reply had been received.

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Recovering HKD 120 million from the founder

According to information disclosed by Risesen Property Services, the legal proceedings against its founder Huang Qingping stem from a whistleblower letter dating back to June 2024. In the letter, the whistleblower stated that Huang Qingping had fully misappropriated the proceeds from the company’s IPO, and that they had not been returned to date. The whistleblower also alleged that since the company’s listing, Huang Qingping had repeatedly instigated the executive director and chief financial officer Huang Xuemei to misappropriate the company’s operating funds. The whistleblower further accused that in the company’s annual report, in each section under “Related Party Transactions” related to “advances to related companies,” the related party transactions disclosed were all transactions between the company and related entities controlled by Huang Qingping, and that these transactions were not disclosed, violating relevant requirements of the Listing Rules.

Subsequent investigation results showed that even before the IPO proceeds of Risesen Property Services were available for use, the companies controlled by Huang Qingping had already planned to borrow HKD 120 million, and this funding was then routed through multiple other companies during 2020 to 2023, ultimately ending up at Yincheng Group. As a result, Risesen Property Services’ subsidiary—Nanjing Yincheng Property—claimed that it had lent RMB 123 million to Yincheng Group, and on that basis paid that amount to multiple other companies designated by Yincheng Group.

For this reason, on March 26 of this year, Risesen Property Services and Nanjing Yincheng Property issued a writ of summons in the High Court of Hong Kong against Huang Qingping, claiming HKD 120 million or RMB 123 million and related losses. The court also granted a temporary injunction restricting Huang Qingping from disposing of relevant assets in Hong Kong, including about 13.9 million shares of Risesen Property Services.

Public information shows that Huang Qingping, now over 60 years old, is also the founder of Yincheng Group, a well-known real-estate enterprise in Nanjing. After graduating in 1983, he entered the local urban construction system. Ten years later, he joined the state-owned enterprise of the time—Nanjing Yincheng Real Estate Development General Company. In 2001, the company completed a shareholding reform and transformed into a private enterprise; Huang Qingping served as chairman. In March 2019, Yincheng International Holdings was listed in Hong Kong. In November of the same year, Yincheng Property Services was also successfully listed on the Hong Kong stock market, making Huang Qingping the ultimate controlling party of two listed companies.

In June 2022, the equity structure of Yincheng Property Services changed. Ruihua Investment paid HKD 150 million to acquire more than 50 million shares of the company, becoming the second-largest shareholder with a 20% stake. More than one year later, Ruihua Investment increased its stake to 27.98%, narrowing the gap with the largest shareholder Huang Qingping to less than 4 percentage points. In May 2024, Yincheng Property Services announced a rename to Risesen Property Services, kicking off the process of “de-Yincheng-ing.” One month later, the whistleblower letter concerning Huang Qingping was made public.

Huang Qingping had no intention of continuing to fight. In February this year, Risesen Property Services disclosed that he had transferred 25.13% of the shares he held in the company, reducing his shareholding ratio to 5.2% and relinquishing the position of controlling shareholder. The filing of this lawsuit means that Risesen Property Services has completely drawn a line with this former founder.

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Forced delisting is set in stone

More than a month before releasing the delisting announcement, Risesen Property Services only sent positive signals to the outside, stating that it had been actively addressing the guidance issued by the Hong Kong Stock Exchange regarding the company’s resumption of trading.

The company said that, in addition to reissuing three financial reports, it had appointed independent forensic accountants to conduct independent forensic investigations in two phases, and to publish the investigation results into the matters involved in the whistleblower letter, the impact on business operations, and remedial measures. As of now, all executive directors and non-executive directors identified in the forensic investigation results conducted by the independent forensic accountants have been removed, retired, or resigned from their positions, and the current directors have never held any positions in Yincheng Group or Yincheng International. The newly appointed chief financial officer and president also have never held any positions in Yincheng Group or Yincheng International, and the issue of management’s independence has been resolved.

At the operational level, as of the end of June 2025, Risesen Property Services had 807 projects providing property management services, covering both residential and non-residential properties, and 94.2% of the projects came from market-oriented expansion. Among them, there were 447 non-residential property projects, increasing by about 2.3% year over year.

Revenue and profit indicators showed improvement. In the first half of 2025, the company achieved revenue of RMB 996 million, up 4.1%; it recorded gross profit of approximately RMB 151 million, up 7.7%; and net profit for the period was about RMB 57.52 million, turning from a loss to a profit on a year-over-year basis.

In an announcement dated February 27, Risesen Property Services emphasized that since the suspension of trading, the company had been taking active steps to correct the matters that caused the pause in buying and selling, and hoped to fulfill all resumption of trading guidance as soon as possible. Judging from the current situation, the operating business is expected to continue to generate profits, and it has steady cash flow and working capital. The newly appointed management team has professional capabilities and clear commitments to integrity, and together with the optimization of the corporate governance structure, all measures can ensure the thoroughness and effectiveness of the internal monitoring system, addressing and eliminating previous deficiencies. In light of these actions, “the board of directors believes that all additional resumption guidance has been comprehensively addressed.”

In reality, Risesen Property Services had already submitted a resumption of trading application to the Hong Kong Stock Exchange on February 9, and on March 24 it published a positive earnings forecast, disclosing that its net profit for full-year 2025 would be no less than RMB 65 million, reversing the loss situation in 2024.

It’s just that these proactively disclosed favorable news items were unable to influence the Hong Kong Exchanges and Clearing Limited’s decision. On March 20, in a letter to Risesen Property Services, the Hong Kong Exchanges and Clearing Limited stated that the company failed to fulfill the resumption of trading guidance on or before February 27, 2026, and also failed to demonstrate that it is suitable for listing. According to relevant provisions of the Listing Rules, the Listing Committee decided to cancel its listing status effective April 9, 2026.

It is understood that Yincheng International Holdings, the real-estate listed company under Huang Qingping, was delisted in March 2025. According to statistics, as of now, the number of real-estate stocks delisted on both A+H shares has exceeded 30. And the delisting of Risesen Property Services shows that property-management stocks have also started entering a risk-clearing stage, sounding an alarm for listed property-management companies facing similar circumstances and with governance defects.

Duty editor-in-charge: Li Hongmei

Responsible editor: Li Hongmei Wen Hongmei