Author | Liu Baodan
Editor | Zhou Zhiyu
After being arrested in London and extradited to the United States in connection with a bribery case, Zhang Li, the founder and co-chairman of R&amp;F PROPERTIES, has finally returned to China after half a year.
According to information from the United States, Zhang Li has reached an agreement with the local prosecutor to dismiss the charges after three years.
On July 21, R&amp;F PROPERTIES announced that Zhang Li has signed a deferred prosecution agreement with the Office of the Northern District of California. The signing of this agreement indicates that the charges against Zhang Li are temporarily not determined. If Zhang Li complies with the terms of the agreement, the charges will be dismissed.
This means that this sensational transnational bribery case has come to an end, and Zhang Li, who was deeply involved in it, has finally been able to free himself.
This lawsuit was already set in motion in 2015. At that time, R&amp;F PROPERTIES acquired a high-end apartment development project, 555 Fulton, in San Jose, California through its subsidiary. The project covers an area of nearly 2 acres.
The problem lies with 555 Fulton, which later became involved in a series of corruption cases in the California Department of Public Utilities. In order to quickly obtain project permits, Zhang Li, through Chinese businessman Huang Yongle, got to know a director named Mohamed Nuru in the California Department of Public Utilities and paid for his expenses during his trip to China in 2018.
It is reported that Nuru enjoyed a five-star hotel throughout the trip and received gifts including a bottle of wine worth $2,070, all of which were not reported in accordance with the law. Of course, Nuru also helped Zhang Li obtain the permits and solve a series of problems.
In August 2022, Nuru was sentenced to 7 years in prison, exposing the matter. At the end of last year, Zhang Li was arrested in London and paid a sky-high bail of up to 15 million pounds for this. Six months later, Zhang Li agreed to be extradited from London to the United States.
On July 19, the U.S. Federal Prosecutor's Office issued a press release stating that the prosecutor and Zhang Li have finally reached an agreement: the prosecutor agrees to dismiss the charges against Zhang Li after three years, on the condition that Zhang Li admits to engaging in improper bribery and pays a fine of $50,000. In addition, Zhang Li's project company will also pay a fine of $1 million and enter into a corporate compliance program.
One clause has sparked speculation, as the agreement may include the return of ill-gotten gains, but this has not been clearly defined at present. Public information shows that the total investment in the 555 Fulton project is $340 million, but the profitability is unknown.
However, the companies involved in the incident are personally owned by Zhang Li and have no relation to R&amp;F PROPERTIES. R&amp;F PROPERTIES also reiterated in its announcement that the company and its subsidiaries are not involved in the case, so the case will not have any significant adverse impact on the company's business and operations.
The San Francisco Chronicle quoted Zhang Li's lawyer, Roger Burlingame, as saying that Zhang Li and his team were able to convince the prosecutor to dismiss the charges against his client, and he is &#34;pleased&#34; about it.
For Zhang Li, this resolution is indeed good news. At least after getting out of this situation, he can return to his home country and share the pressure of the continuous downturn in the real estate market with Li Silian.
In the past six months, the real estate industry has been struggling in a downturn. Although R&amp;F PROPERTIES completed a 33 billion debt restructuring, the days have not been easy for them. Just a week before his return, R&amp;F PROPERTIES got involved in a dispute with Guangfeng Concrete Co., Ltd. and Guangdong Xiangzheng Trading Co., Ltd. over bills, and the latter applied for bankruptcy liquidation.
In response, R&amp;F PROPERTIES stated that the current assets of Guangzhou R&amp;F PROPERTIES are higher than its liabilities, and there is no situation of insolvency. The company is operating normally and does not have any bankruptcy reasons. They are actively negotiating a settlement with Guangfeng Concrete and Xiangzheng Trading.
On July 14th, R&amp;F PROPERTIES issued an announcement stating that they received a court notice confirming that they will not be subject to bankruptcy liquidation.
The reason given by the court for rejecting the bankruptcy liquidation application is that R&amp;F PROPERTIES' business operations are normal and there is no evidence to prove that the company is insolvent.
Next, R&amp;F PROPERTIES will face many practical problems. With the loss of financing capabilities, they can only quickly resume sales and self-generate funds. However, the real estate industry continues to be sluggish, and the national commodity sales have been consistently negative. R&amp;F PROPERTIES also finds it difficult to stand alone. Data shows that R&amp;F PROPERTIES' cumulative contracted sales in the first half of 2023 amounted to 13.54 billion yuan, which is a direct halving compared to last year.
Fortunately, R&amp;F PROPERTIES completed a $4.944 billion overseas debt extension led by JPMorgan Chase last year. At that time, most real estate companies had a negative attitude towards US dollar bonds, but R&amp;F PROPERTIES' plan was recognized by the public. Since then, R&amp;F PROPERTIES has also collaborated with many asset management institutions, introducing central enterprises and asset management companies, and increasing efforts to revitalize assets.
With two years remaining until the maturity of the overseas debt, along with good asset quality and support from financial institutions, these are the magic weapons for R&amp;F PROPERTIES to navigate through this crisis.
At the age of 70 this year, Zhang Li is older than Wu Yajun and Yang Guoqiang, who have already retired. However, R&amp;F PROPERTIES is currently at a critical juncture, and he must persist on the front lines.
Can he turn the tide and end his career on a high note, adding a brilliant touch to his life? It all starts with this return.

02777

Keep moving forward with determination.

R&F PROPERTIES boss Zhang Li has returned from the United States.