[Epoch Times September 24, 2021](Epoch Times reporter Liu Yi comprehensive report) China Fortune Land Development, a mainland A-share listed real estate development company, issued an announcement on the evening of September 23 that the company’s shares will be released on September 24, 2021 (Friday) ) Trading will be suspended from the opening of the market, and the expected suspension time will not exceed 5 trading days.
According to the announcement, due to the impact of multiple rounds of epidemics in the macroeconomic environment, industry environment, and credit environment, the company’s liquidity has been temporarily strained. Under the guidance of the provincial and municipal governments, the company intends to communicate with creditors on the relevant content of the comprehensive risk mitigation plan In view of the fact that the plan involves numerous creditors and complex content, there are major uncertainties in related matters. In order to avoid abnormal fluctuations in the company’s stock price, the company’s stock will be suspended from the opening of the market on the 24th.
China Fortune Land Development’s performance and finances went from bad to worse after the debt problem “thunderstorm” in February this year. According to a report by the Securities Times on September 24, as of the latest disclosure on September 4, China Fortune Land Development has failed to repay the principal and interest of its debts as scheduled and totaled 87.899 billion yuan (People’s Daily, the same below). As of the end of the first half of the year, the above-mentioned cumulative failure to repay the principal and interest of the debt on schedule totaled 69.166 billion yuan, a significant increase.
China Fortune Land Development’s performance report for the first half of this year released on August 26 shows that in the first half of this year, China Fortune Land Development’s revenue was 21.068 billion yuan, a year-on-year decrease of 43.63%; net profit attributable to shareholders was negative 9.480 billion yuan, a year-on-year decrease of 256.37%; sales The amount was 13.968 billion yuan, a year-on-year decrease of 66.69%.
China Fortune Land Development stated that most of the local governments in the entrusted regions are worried about the ability of the new industrial city to perform in the future, and have suspended the settlement of the new industrial city project. Without obtaining the government’s income confirmation document, the company cannot confirm the income of industrial development services. It is the main reason leading to the decline in service income of industrial development.
Unlike other real estate companies, China Fortune Land Development Co., Ltd. is a typical model of PPP (government and social capital cooperation) created by cooperating with local local authorities. Radio Free Asia quoted industry insider Zhang Lu as commenting that the local government gave China Fortune Land, China Fortune Development and Construction, and then China Fortune was responsible for the operation, and then divided the money with the authorities, but if the sales are not good, no company will definitely not be able to operate. It originally gambled on whether the local economy could keep up.
China Fortune Financial’s troubles have also dragged down its second largest shareholder, Ping An, China. Ping An’s semi-annual report shows that the impairment of China Fortune-related investment assets has been accrued, of which 14.4 billion is accrued in equity and 14.4 billion is accrued in debt. The impairment was 21.5 billion yuan, for a total of 35.9 billion yuan.
However, Ping An has no intention of taking over the market for China Fortune Happiness, whose debt is currently topping. “Securities Times” reported that Ping An stated that it has no intention to become the controlling shareholder or actual controller of the company.
Regarding China Fortune’s suspension of trading, commentator Wen Xiaogang speculates that it is possible that China Fortune’s debt problem will not drag on. There should be a result this time, or reorganization or the introduction of strategic investors. .
In the past year, the market value of China Fortune Land has fallen by more than 80%. As of the close on September 23, the company’s stock price was reported at 4.01 yuan per share, with a total market value of only 15.7 billion yuan.
Editor in charge: Lin Congwen
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