CFLD reports significant asset impairments, fair value changes in H1 2025

China Fortune Land Development (CFLD) reported significant asset impairment provisions and fair value changes totaling CNY 2.87 billion, impacting its first-half 2025 net profit by CNY 2.10 billion. The provisions include CNY 2.15 billion for bad debts, CNY 433.23 million for inventory write-downs (primarily in Huailai, Dachang, and Guangyang regions), CNY 127.18 million for contract assets, CNY 9.48 million for construction in progress, and CNY 94.99 million for intangible assets. Additionally, a fair value change loss of CNY 46.42 million was recognized for investment properties.

These adjustments were approved by the board with seven votes in favor and one against, citing concerns about the prudence of asset disposal. The company continues to advance its debt restructuring plan, with CNY 192.67 billion in financial debt already restructured and additional equity-for-debt transactions totaling CNY 23.63 billion. CFLD’s financial performance for the first half of 2025 saw a 50.90% decrease in operating revenue to CNY 2.90 billion and a net loss attributable to shareholders of CNY -68.27 billion.