Original After losing more than 70 billion in 5 years, the “big brother of Huanjing Real Estate” is waiting for the “white knight”

The agreement stipulates that within 3 working days from the date of the court’s decision to approve the reorganization plan, the reorganization investors shall pay the entire reorganization investment of 1.2 billion yuan without any conditions.

At the same time, the “Reorganization Investment Agreement” also sets up a deposit clause – in order to participate in this restructuring investment, Hangzhou Chengfenglai, Nanyang Mulanhua and Hangzhou Chengfeng are now required to pay 20% (240 million yuan) of the restructuring investment amount payable to China Land Development Interim Manager as a performance deposit within 5 working days from the date of signing this agreement.

Among them, Hangzhou Chengfeng Lai and Hangzhou Chengfeng should pay 239.88 million yuan now, and Nanyang Mulan should pay 120,000 yuan.

As the designated investment entity of Hangzhou Chengfeng, Hangzhou Chengfeng will now hold shares of China Fortune Land Development and become the controlling shareholder of China Fortune Land Development by participating in this restructuring investment.

After the reorganization, Hangzhou Chengfenglai, Nanyang Mulan and Hangzhou Chengfeng will now use their own industrial advantages, resource advantages and location advantages to comprehensively improve the profitability of China Fortune Land Development, and will continue to invest operating funds and provide other resource support according to business development needs to promote business development.

Information from Tianyancha shows that Hangzhou Chengfeng was established in May 2026 with a registered capital of 500 million yuan.

In terms of equity, the company is owned by Hangzhou Chengfeng Lai, Hangzhou Guantong Enterprise Management Co., Ltd., Hangzhou Yifan Enterprise Management Co., Ltd., and Hangzhou Chengfeng Now Hash Power Infrastructure Management Co., Ltd. (referred to as “Chengfeng Now Hash Power”) holding 39%, 30%, 30% and 1% of the shares respectively.

It is worth mentioning that Sunac Capital appears behind Chengfeng’s computing power. The equity penetration chart shows that Chengfeng Now’s computing power comes from Hangzhou Chengfeng and Shanghai Now Now Enterprise Development Co., Ltd. holds 51% and 49% of the shares respectively.

The legal representative of the latter, Wang Peng, was the executive president of Sunac China and the president of the Southeast Regional Company. According to the Economic Observer Network, Sunac China insiders confirmed that Shanghai Jinjin Capital is a non-performing asset management company established by Sunac, but it has nothing to do with the listed company Sunac China in terms of equity.

In terms of corporate governance arrangements, after the reorganization, the number of members of China Fortune Land Development’s board of directors should be 9, including 3 independent directors; among the 9 seats on the board of directors, the total number of non-independent directors and independent directors nominated or recommended by Hangzhou Chengfeng is no less than 6 (including no less than 3 non-independent directors and no less than 3 independent directors), and the chairman of the board shall be a director nominated by Hangzhou Chengfeng.

China Fortune Land Development stated that if the company’s pre-reorganization and reorganization procedures are smoothly advanced and the reorganization is successful, it will be conducive to improving the company’s financial structure and resolving the debt crisis. At the same time, after the introduction of reorganization investors, incremental funds will be injected to restore and enhance the company’s ongoing operations and profitability, and help the company continue to develop healthily.

The day after the aforementioned announcement was released, *ST Huaxing’s share price rose 6.2% in a single day, closing at 1.37 yuan per share. But on September 30, *ST Huaxing’s share price fell 5.11%, with the latest market value being 5.061 billion yuan.

The former “Big Brother of Real Estate in Beijing” has experienced many twists and turns on the road to “rebirth”

Looking back on China Fortune Land Development’s “rebirth” journey, the process has been full of twists and turns. Moving the timeline back to 2021, China Fortune Land Development suffered a debt crisis due to factors such as the downturn in the Beijing-based market and the tightening of financing channels.

In order to reduce the company’s debt burden, in October 2024, China Fortune Land Development launched the “Replacement Belt Plan”. According to this plan, China Fortune Land Development plans to transfer the equity of its subsidiary company to Langfang Asset Management at a price of 2 yuan, replacing the company’s debt of approximately 22.575 billion yuan to Langfang Bank.

The above-mentioned plan also mentioned that Langfang Bank and Langfang Asset Management will entrust these assets to China Fortune Land Development and its subsidiaries for collection and disposal operations for a period of 8 years. The proceeds from the operation and disposal will belong to Langfang Bank, and assessment targets will be set. If the assessment target is not met, cash will be required to make up the amount.

However, a series of efforts did not help China Fortune Land Development completely escape the crisis, and the company ultimately failed to escape the fate of being applied for reorganization.

In mid-November 2025, China Fortune Land Development issued an announcement stating that because the company owed the balance of 4.1716 million yuan to Longcheng Construction Project, the latter applied to Langfang Intermediate People’s Court to reorganize the company on the grounds that it had not paid off its due debts on time and clearly lacked the ability to repay, but it had reorganization value, and also applied to initiate the pre-reorganization procedure.

However, China Fortune Land Development’s restructuring process has not been smooth. Only three days after the aforementioned announcement was released, Wang Wei, a director of China Fortune Land Development’s “Ping An Department”, issued a public statement saying that he had no knowledge of the announcement and that the company had not informed him in any form. He “angrily accused” the company of bypassing him in the announcement and seriously violated the rules of procedure of the board of directors and basic procedures of corporate governance stipulated in the company’s articles of association.

In addition, Ping An also submitted five temporary proposals the following month, mainly focusing on pre-reorganization procedures, non-independent director personnel arrangements, financial due diligence, debt restructuring plans, etc.

However, at the 36th meeting of the eighth board of directors of China Land Development held on December 21, 2025, the above-mentioned temporary proposal was rejected. The voting result was 1 vote in favor, 7 votes against, and 0 abstentions, and the company’s pre-reorganization was able to continue to advance.

A few months later, China Fortune Land Development finally finalized the candidate for the “white knight”. On June 10 this year, China Fortune Land Development issued an announcement stating that the company received the “Notice on Determining Reorganization Investors” from the interim manager on the same day.

The notice stated that under the supervision of Langfang Intermediate People’s Court and after review by the Reorganization Investor Selection Review Committee of China Fortune Land Development’s pre-reorganization case, Hangzhou Chengfenglai and Nanyang Mulan Alliance were determined to be the successful reorganization investors.

China Fortune Land Development also emphasized that as of the date of the announcement, although the selection and review of the intended reorganization investors had been completed, they had not yet signed a reorganization investment agreement. There is still uncertainty about whether the company and the successful reorganization investors can sign a reorganization investment agreement and whether they can reach an agreement on the specific content of the reorganization investment agreement.

After more than three months of negotiations, China Fortune Land Development announced at the end of September that the company and the restructuring investors had formally signed the “Reorganization Investment Agreement.” However, as of the date of the announcement, China Fortune Land Development has not yet received documents from the court to accept the reorganization application, and there is significant uncertainty as to whether the company will subsequently enter the reorganization process.

Loss exceeds 70 billion in 5 years, performance in first half of the year is under pressure again

Although China Fortune Land Development’s restructuring has made significant progress recently, the company is still facing huge performance pressure.

In fact, since falling into a debt crisis in 2021, China Fortune Land Development’s operating conditions have continued to deteriorate. That year, the company achieved revenue of 43.181 billion yuan, a year-on-year decrease of 57.33%; it recorded a net profit loss of 39.03 billion yuan attributable to the parent company, turning from profit to loss year-on-year.

The following year, China Fortune Land Development briefly turned a profit and achieved a net profit attributable to its parent company of 1.588 billion yuan for the year. But since 2023, China Fortune Land Development has fallen into a quagmire of continuous losses.

Flush iFinD data shows that from 2023 to 2025, China Fortune Land Development’s net profit losses attributable to its parent company were 6.028 billion yuan, 4.817 billion yuan, and 22.859 billion yuan respectively.

Based on this calculation, in the five years from 2021 to 2025, China Fortune Land Development’s cumulative losses reached 71.146 billion yuan.

Entering 2026, China Fortune Land Development’s performance has still not shown obvious signs of improvement. The financial report shows that in the first half of this year, the company recorded revenue of 1.657 billion yuan, a decrease of 42.92% compared with the same period last year; although the net profit loss attributable to the parent company narrowed 31.28% year-on-year, it was still as high as 4.692 billion yuan.

In terms of business, according to the “Operation Briefing for April-June 2026” disclosed by China Fortune Land Development on August 28, in the first half of this year, the company’s full-scale cumulative sales of the industrial new city park business were 257 million yuan, a year-on-year decrease of 36. 39%; real estate development contract sales (full scale) were 436 million yuan, a year-on-year decrease of 44.39%; full-scale sales of other businesses (property and hotels, etc.) reached 1.347 billion yuan, a year-on-year decrease of 18.9%.

From the perspective of sales area, in the first half of this year, China Fortune Land Development’s total sales area reached 108,100 square meters, a decrease of 12.75% compared with the same period last year.

As of the end of the first half of the year, China Fortune Land Development’s total assets were 252.434 billion yuan, a year-on-year decrease of 9.23%; total liabilities were 262.118 billion yuan, a slight decrease of 0.64% year-on-year. Based on this calculation, China Fortune Land Development’s asset-liability ratio is as high as 103.84%, an increase of nearly 9 percentage points from the same period last year.

According to the debt restructuring progress announcement disclosed by China Land Development on September 24, as of August 31, the total amount of debt restructuring of the 219.2 billion yuan of financial debt in the company’s “Debt Restructuring Plan” through signing and other methods was approximately 192.669 billion yuan, and the corresponding debt interest reduction and penalty interest exemption amount was 20.203 billion yuan.

During the same period, China Fortune Land Development used the equity of its subsidiary companies to build the “Happiness Select Platform” to repay financial debts of approximately 17.454 billion yuan, and the relevant creditors received approximately 43% of the equity in the “Happiness Select Platform”.

At the same time, China Fortune Land Development used the equity of its subsidiaries to build the “Happiness Select Platform” and the “Happiness Preferred Platform” equity to offset operating debts of approximately 6.208 billion yuan. The relevant creditors obtained approximately 2.83% of the equity of the “Happiness Select Platform” and 11.56% of the equity of the “Happiness Preferred Platform”.

As of August 31, China Fortune Land Development had failed to repay its debts as scheduled, totaling 28.432 billion yuan.

In addition, the announcement also mentioned that the total amount involved in China Fortune Land Development’s recent new litigation and arbitration cases is 195 million yuan, accounting for approximately 1.1% of the company’s latest audited net assets attributable to shareholders of listed companies – 17.743 billion yuan in absolute value.

China Fortune Land Development stated that the litigation and arbitration cases involved in the announcement are currently in progress and are yet to be heard by judicial authorities and active negotiations between the company and relevant parties. The final outcome of the case is uncertain, and the company will conduct corresponding accounting treatments in accordance with the requirements of the Accounting Standards for Business Enterprises and the actual situation.

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