The real estate sector was rocked by explosive news as Wang Wei, a director appointed by Ping An Insurance (601318.SH), publicly denounced China Fortune Land Development (600340.SH)'s bankruptcy pre-restructuring filing in a November 20 statement. She claimed no prior knowledge of the move, filed complaints with regulators, and warned investors to scrutinize the risks.
Why would China Fortune Land—which recently restructured nearly RMB200 billion in financial debt—face pre-restructuring over just RMB4.17 million in unpaid construction fees? Why did Director Wang Wei openly oppose this? What led to the rift between trillion-yuan Ping An and the once-mighty developer?
As of Q3, Ping An Life Insurance and its products held 980 million shares (25.05%) of China Fortune Land. Ping An initially invested RMB18 billion in 2018 for a 25.25% stake at RMB23.71/share. With shares now at RMB2.83 (November 21), Ping An faces a RMB16.8 billion paper loss. Including 2021’s RMB43.2 billion impairment, total losses exceed RMB60 billion over seven years—a far cry from the envisioned "fortune" in this partnership.
1. Dual Bankruptcy Proceedings: Legal Intervention On November 17, China Fortune Land announced creditor Longcheng Construction applied to Langfang Court for restructuring and pre-restructuring, citing unpaid RMB4.17 million dues. The company stated no objection to pre-restructuring. However, Director Wang Wei countered that the announcement violated governance rules as it bypassed board approval. Concurrently, China Fortune Land opened creditor claims until December 18.
By October, the developer had RMB24.57 billion in overdue debt, with the Longcheng claim representing just 0.17%. Speculation suggests pre-restructuring could help resolve stubborn smaller debts after 90% of financial creditors agreed to restructure RMB264.7 billion liabilities.
2. Rise and Fall of a Giant Once a RMB500 billion industrial park developer, China Fortune Land now reports dire finances: Q3 2025 revenue plunged 87.76% YoY to RMB979 million, with net losses hitting RMB3 billion. Shareholders’ equity stands at negative RMB4.74 billion—a 93.54% collapse from 2018’s RMB43.8 billion when Ping An invested.
Under its restructuring plan, RMB192.7 billion financial debt was resolved via agreements, with RMB17.5 billion and RMB6.2 billion settled through "Happiness Selection" and "Happiness Preferred" equity platforms. Yet unresolved debts total RMB24.57 billion, alongside new lawsuits worth RMB438 million.
3. Irreconcilable Differences Wang Wei, Ping An’s sole board representative, has repeatedly opposed China Fortune Land’s financial reports and debt plans, including a May 2025 proposal to transfer subsidiaries for RMB2 to offset RMB22.6 billion debt. Her dissent reflects Ping An’s frustration as the largest shareholder (25.2%) lacking control—founder Wang Wenxue retains decision-making power.
Ping An has provided RMB35.5 billion in financing since 2018 but wrote off RMB43.2 billion in 2021, leaving RMB10.8 billion exposure. Recent share sales reduced its stake below 25%, forfeiting veto rights. Analysts suggest Ping An may further divest its 3% stake to pressure better restructuring terms.
Founded in 1998 and listed in 2011, China Fortune Land expanded under Wang Wenxue to become a Hebei real estate titan. Now, its RMB230 billion debt saga strains ties with Ping An, marking a dramatic unraveling of their alliance.
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