20th April 2024 – (Guangzhou) In the sprawling metropolis of Guangzhou’s Baiyun District, a troubling discovery has raised significant concerns about the structural integrity of high-end residential projects developed by New World China. The ‘Glory of Legend’ luxurious residential project, has instead become a case study in construction malfeasance, where the dreams of many homeowners have crumbled as quickly as the walls around them.

The issues came to light when Ms. Tai, a resident on the 24th floor of the ‘Glory of Legend’, during a routine check in November 2023, pressed against what was presumed to be a solid wall, only to find it disturbingly hollow and filled with foam. This alarming discovery was not isolated, with at least five other households reporting similar issues. The use of such substandard materials not only questions the safety of the buildings but also the ethical standards of the construction practices employed by New World China.

Further compounding the residents’ fears, the entire lobby ceiling in one of the blocks collapsed on 16th April, 2024, following severe water leakage issues. This incident, occurring shortly after a fire drill, starkly underscored the inadequate response from property management and the developer to the building’s structural failings. Residents now live under the constant threat of their homes falling apart, literally and metaphorically.

While New World China reported impressive sales figures in the mainland, exceeding 13.4 billion yuan in 2023, these structural controversies present a hypocritical contradiction to the facade of success. The company, which prides itself on crafting top-tier living spaces, may now face a crisis of confidence among its consumers and investors. The reported issues at the ‘Glory of Legend’ project could potentially tarnish the reputation of New World China, casting a long shadow over its future projects and financial health.

The financial implications of such structural defects are manifold. Beyond the immediate repair costs and potential legal liabilities, there is a significant risk of a market backlash that could affect future sales. Prospective buyers, once eager to invest in what was marketed as secure and luxurious living spaces, might now think twice, fearing similar quality issues. This could lead to a broader financial strain on New World China, challenging its market position and growth trajectory.

The foam walls and other reported defects have prompted calls for stringent regulatory scrutiny and comprehensive reforms within the construction sector. Local authorities have begun investigating the complaints, which could lead to tighter regulations on building practices and materials. For New World China, compliance with enhanced standards could mean increased costs and project delays, further impacting their operational efficiency and profitability.

At the heart of this crisis lies a fundamental breach of trust – a trust that homeowners place in developers to uphold the highest standards of safety, integrity, and workmanship. When that trust is shattered, the repercussions reverberate far beyond the confines of a single development, casting a pall over the entire industry and eroding the hard-earned credibility that companies like New World China have painstakingly cultivated.