Investors in China Fortune Land Development Co., Ltd. (600340) may have had a turbulent time recently, as the stock experienced extreme volatility—first surging with four consecutive trading days of limit-up gains, followed by nearly three trading days of limit-down losses.
On the evening of November 16, China Fortune Land Development announced that it had received a notice from creditor Longcheng Construction Engineering Co., Ltd. (Longcheng Construction) and a notification from the Langfang Intermediate People's Court. Longcheng Construction applied to the court for restructuring and pre-restructuring procedures, citing the company's failure to repay overdue debts while still possessing restructuring value.
According to the court notice, Longcheng Construction claimed that China Fortune Land Development owed RMB 4.1716 million in unpaid construction fees despite repeated demands. The court approved the pre-restructuring application to reduce costs, improve restructuring success rates, and assess feasibility.
China Fortune Land Development stated that pre-restructuring would help expedite debt and operational reviews, including creditor claims verification, asset assessments, and negotiations with stakeholders to formulate a viable restructuring plan. However, the company clarified that no formal court approval for restructuring had been received.
On November 19, current director Wang Wei publicly objected, stating he was unaware of the announcement and alleging violations of corporate governance procedures. Wang emphasized that pre-restructuring approval should undergo board and shareholder voting. He filed complaints with regulators and warned investors to assess risks carefully.
Following this dispute, the stock plunged over 9% on November 20, followed by two consecutive limit-downs on November 21 and 24.
In a late November 24 volatility announcement, China Fortune Land Development confirmed no undisclosed material events beyond the pre-restructuring disclosure. The company cautioned that court acceptance of pre-restructuring does not guarantee formal restructuring approval, and success remains highly uncertain.
Recent media reports on whether pre-restructuring requires board/shareholder approval and creditor committee-led financial investigations have drawn public attention. The company urged investors to rely on official disclosures and exercise caution.
Per Q3 2025 results, China Fortune Land Development reported revenue of RMB 3.882 billion, down 72.09% YoY, with a net loss of RMB 9.829 billion. Its debt-to-asset ratio rose to 96.44%, while liquidity ratios deteriorated.
As of October 31, 2025, the company restructured RMB 192.669 billion of its RMB 219.2 billion financial debt, including domestic bonds (RMB 37.13 billion) and offshore bonds ($4.96 billion), with interest and penalty waivers totaling RMB 20.203 billion. Outstanding unpaid debt stood at RMB 24.569 billion (excluding interest).
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