On November 21, it was learned from the creditors' committee of China Fortune Land Development Co.,Ltd. (600340.SH) that the committee proposed and passed with overwhelming support a resolution authorizing Ping An Asset Management to hire an accounting firm to conduct special financial due diligence on the company.
According to the resolution, the creditors' committee has authorized Ping An Asset Management to engage one of the Big Four accounting firms to perform a specialized financial due diligence on China Fortune Land Development. The working group of the creditors' committee will begin preliminary preparations for the financial due diligence starting from November 24, 2025.
In 2021, China Fortune Land Development defaulted on nearly 90 billion yuan in debt. In February 2021, under the coordination of Hebei Province, Langfang City, and regulatory authorities, the company established a creditors' committee to handle debt disposal.
The creditors' committee is chaired by Industrial and Commercial Bank of China, Ping An Asset Management, and Langfang Bank (later added). Vice-chair positions are held by Agricultural Bank of China, Bohai Bank, CITIC Trust, and Everbright Securities. Other committee members include Zhongrong International Trust, Shaanxi International Trust, China Merchants Bank, Agricultural Development Bank of China, Langfang Bank, and China CITIC Bank.
With the coordination of a special task force and the support of the creditors' committee, China Fortune Land Development formulated a debt restructuring plan in September 2021, proposing to reduce its debt-to-asset ratio below 70% within 2-3 years through six methods: selling assets, transferring debt, extending maturities, repaying in cash, debt-for-equity swaps, and debt assumption.
It is reported that over the past four years, the company has only repaid less than 5% of the promised 30% cash repayment to creditors by the end of 2023. The company's monetary funds have plummeted from 14.4 billion yuan to nearly 3 billion yuan, a drop of nearly 80%.
In terms of performance, for the first three quarters of 2025, China Fortune Land Development reported operating revenue of 3.882 billion yuan, a year-on-year decrease of 72.09%, and a net loss attributable to shareholders of 9.829 billion yuan.
On November 6, China Fortune Land Development announced that it received a notice from the Langfang Intermediate People's Court in Hebei Province, stating that creditor Longcheng Construction Engineering Co., Ltd. had applied to the court to initiate restructuring and pre-restructuring procedures for the company, which the court has accepted. The company emphasized in the announcement that it "has no objection to the pre-restructuring."
On November 19, Wang Wei, a director of China Fortune Land Development, publicly stated that he was completely unaware of the issuance of the above announcement, did not approve of its release process and related statements, and had filed a complaint with regulators regarding the "pre-restructuring." He warned that the announcement might mislead investors due to the lack of a legitimate decision-making process.
Comments