Li Weiguo called out: This year is the "life-or-death" moment for Orient Yuhong.

Right after the Spring Festival, a piece of news about "the largest hotel in Chengdu being put up for sale" quietly spread in the hotel circle.

This hotel, named InterContinental Chengdu Global Center Paradise, has a construction area of 105,000 square meters and 975 guest rooms. It is known as the largest five - star hotel in Chengdu in terms of scale.

This time, its listed price is 950 million yuan, which means only 9,047 yuan per square meter. The listed price of small - property - right office buildings nearby is about 13,000 yuan per square meter.

This is the third time it has been put up for auction. Before its first listing, the appraisal price given by a third - party institution was 1.609 billion yuan.

Location of InterContinental Chengdu Global Center Paradise. Image source: Gaode Map

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This is a hotel with a story.

The enterprise that developed InterContinental Chengdu Global Center Paradise is Global Sunac Convention & Exhibition Cultural Tourism Group. Its boss is Deng Hong, a legendary figure in the real - estate circle of Chengdu.

He started his business in 1986 and began his convention and exhibition tourism business in 1995. In 2003, he registered and established Chengdu Century City New International Convention & Exhibition Center Co., Ltd. (renamed Chengdu Global Century Convention & Exhibition Tourism Group Co., Ltd. in 2017). In the following 16 years, a large number of tourism and convention and exhibition projects and land were incorporated into this company. At the peak of the real - estate industry, the value of his company reached tens of billions of yuan.

But in 2019 - the golden year of the real - estate industry, Deng Hong withdrew from Chengdu Global Century and sold the company to the booming Sunac. Sunac acquired 51% of the equity of each of the two enterprises under Deng Hong's name, Global Century and Chengdu Times Global Industrial Co., Ltd., for 15.269 billion yuan.

Since then, Deng Hong cashed out at a high point, and InterContinental Chengdu Global Center Paradise became an asset under Sunac. After that, Sunac held many large - scale events here, including the Southwest Cultural Tourism Strategy Press Conference of Sunac and the Brand Renewal Press Conference of Global Sunac Hotel Group. InterContinental Chengdu Global Center Paradise once became a synonym for high - end hotels in Chengdu.

But three years after Sunac completed the acquisition, it also encountered debt difficulties. Sunac continuously sold assets to seek liquid assets, and InterContinental Chengdu Global Center Paradise was put up for sale again.

On January 25, 2024, InterContinental Chengdu Global Center Paradise was auctioned for the first time with a starting price of 1.15 billion yuan, but the auction failed. On February 26, the project was put up for auction again, and the starting price was reduced to 1 billion yuan, and the auction failed again.

Not long after, InterContinental Chengdu Global Center Paradise was "used to offset debts" to Orient Yuhong, which had been asking for payment for supplies. According to industry sources, the debt - offset amount was about 1 billion yuan.

On the surface, the debt between Orient Yuhong and Sunac has been cleared up, but Orient Yuhong now "can't make the accounts work".

Some media calculated an account for Orient Yuhong: The occupancy rate of InterContinental Chengdu Global Center Paradise reached 57% in 2023. Before that, its operating income in the past five years was about 190 million yuan, and the profit for the owner's assessment was 50 million yuan. However, with nearly a thousand guest rooms, a large public area, a constant - temperature indoor amusement park, a 24 - hour operating mechanical and electrical system, a large staff establishment, and the management fees of an international brand... Although it seems to have a profit of 50 million yuan every year, once the depreciation, financial expenses, and hidden maintenance expenses are deducted, the real cash flow is not good.

Looking at Orient Yuhong's performance in recent years: In 2024, its profit dropped sharply to only 108 million yuan. It is expected that it may turn from profit to loss in 2025.

Data source: Xueqiu

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While seeking a new buyer for InterContinental Chengdu Global Center Paradise, Li Weiguo, the chairman and general manager of Orient Yuhong, published two signed articles, "Absolute Determination" and "Decide the Victory and the Death", on the company's official WeChat account.

Image source: Orient Yuhong's official WeChat account

In the articles, Li Weiguo said:

Now, Orient Yuhong is standing at a historical watershed... This is the moment of 'deciding the victory and the death' - there is no middle ground, and there is no room for ambiguity.

And "For most things in the world, 'do one's best' can be the answer. But there are some moments when it doesn't work. In 2026, for Orient Yuhong, it is such a moment. There is no gray area and no room for maneuver. What lies in front of us is a clear - cut 'black and white' - either turn around or capsize. This is not a multiple - choice question, but a survival reality that we have to face every time we wake up."

It can be seen that Li Weiguo really believes that Orient Yuhong has reached a "life - and - death moment".

Orient Yuhong, which used to do well and was called the "king of waterproofing", had a turning point when the real - estate industry declined.

Real - estate development enterprises are Orient Yuhong's largest customers. At the peak, the real - estate - related revenue accounted for 65%, and the proportion of direct - sales to large real - estate customers once reached as high as 41.3%. From 2020 to 2025, the new construction volume of the national real - estate industry shrank from about 2.244 billion square meters to about 588 million square meters, a cumulative decrease of 73.8% - Orient Yuhong has been gradually losing its largest source of cash flow in the past five years.

Moreover, a considerable part of the purchases of Orient Yuhong by real - estate development enterprises has become bad debts or "houses used to offset debts", which are called "work - offset houses" in the industry.

According to public information, Orient Yuhong mainly received debt - offset assets from downstream real - estate enterprises such as Sunac, Greenland, and Jinke, with a cumulative received amount of about 3.26 billion yuan. The core assets are mainly commercial properties (accounting for more than three - quarters), and also include some residential and office buildings.

Recently, short of money, Orient Yuhong is trying various ways to replenish its cash flow, including cashing in these 'work - offset houses'.

On January 16, Orient Yuhong held a board meeting to vote on the resolution to sell the latest batch of "work - offset houses". The target assets planned to be sold are 42 sets of office, residential, and commercial properties, with a total book value of about 75.22 million yuan.

Image source: Orient Yuhong's announcement

Orient Yuhong said in the announcement: It is estimated that this transaction will result in an asset disposal loss of 29.0368 million yuan. Since the company's last disclosure of the "Announcement on Asset Sale" on December 9, 2025, the cumulative asset disposal loss has reached 38.3966 million yuan, accounting for more than 10% of the company's audited net profit in the latest fiscal year.

The final selling price was about 32.27 million yuan, equivalent to a 43% discount.

In addition, 11 properties in Miyun, Beijing, and 13 properties in Shangcheng District, Hangzhou, held by Orient Yuhong are also for sale. The book net value of this batch of properties is about 443 million yuan, and it is estimated that a disposal loss of 25.8085 million yuan will be incurred.

These asset transactions will inevitably reduce Orient Yuhong's net profit. But for Orient Yuhong at present, cash is obviously more precious. The third - quarter report in 2025 shows that the company's monetary funds are 3.764 billion yuan, nearly half less than at the end of the previous year - Orient Yuhong needs'money'.

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In 2025, the decline was not fundamentally reversed. In the first three quarters, the operating income was 20.601 billion yuan, still a 5.06% year - on - year decrease; the net profit attributable to the parent company was 810 million yuan, a 36.61% year - on - year decrease. Although the decline was narrower than in 2024, the company still faced huge profit - making pressure.

In the first three quarters of 2025, Orient Yuhong's net profit margin was 3.82%, which was significantly improved compared with 2024, but it was still at the bottom compared with 13% - 16% from 2020 to 2021 and about 7% from 2022 to 2023.

In terms of profit quality, Orient Yuhong's core profitability was also under pressure. As the concentration of the waterproofing industry increased, small and medium - sized waterproofing enterprises accelerated their exit from the market, but the competition among leading enterprises became more intense, and price wars occurred frequently, further squeezing the industry's profit margin.

Coupled with the impact of the price fluctuations of upstream raw materials, Orient Yuhong's cost pressure continued to increase. The core raw materials for waterproofing products are asphalt, emulsion, etc., and their prices are greatly affected by international crude oil prices. In recent years, geopolitical conflicts have intensified, and crude oil prices have fluctuated frequently, resulting in a significant increase in raw material costs. The price - pressing behavior of downstream real - estate enterprises makes it difficult for the company to fully transfer the cost pressure to the end - users, further squeezing the profit margin.

In March 2026, Orient Yuhong had to issue a price - increase letter, raising the prices of asphalt - based coil and coating products on the engineering side by 5% - 10% to cope with the cost pressure, which also reflects its difficult situation in cost control from the side.

Orient Yuhong's dilemma is not caused by a single factor, but is the result of the combined effect of the industry's cyclical adjustment and the company's own development bottleneck. Previously, Orient Yuhong had been in an expansion mode. To consolidate its leading position in the industry, Orient Yuhong has deployed 68 production, R & D, and logistics bases and more than 200 internationally advanced production lines across the country, achieving a service capacity of a 300 - kilometer radiation radius and 24 - hour rapid delivery. The large - scale production capacity has brought certain cost advantages, but it has also led to excessive investment in fixed assets and increasing depreciation pressure.

Li Weiguo admitted in "Decide the Victory and the Death" that the industry "is experiencing a major transformation involving the reshaping of structure, value, and ecology. The once - familiar map has become invalid, and a new route needs to be plotted urgently." The impact of this transformation, combined with the company's own layout and the previous acceleration inertia, has pushed Orient Yuhong to the "life - and - death moment".

As the contraction era arrives, Orient Yuhong is making a difficult turn. It is unknown whether Orient Yuhong can withstand this downpour hanging over the industry.