China Fortune Land subsidiary sells assets, parent advances debt restructuring

China Fortune Land Development Co., Ltd. announced that its wholly-owned subsidiary, Huailai Jingyu Real Estate Development Co., Ltd., will sell state-owned land use rights and under-construction projects for Huailai AI Industrial Port to Huailai County Data Bureau for 74.5594 million yuan. This transaction, approved by CFLD's board, aims to enhance cash flow for “guaranteed delivery” projects and is expected to generate a pre-tax profit of approximately 8.6781 million yuan.

In related developments, CFLD is progressing with a major asset sale and related-party transaction to restructure debt. This involves transferring a trust beneficiary interest to offset 24.001 billion yuan in financial debt. As of the announcement date, 22.348 billion yuan in trust beneficiary interest transactions have been completed, with the remaining 1.653 billion yuan in progress.

CFLD also provided updates on its PPP projects in Shaoxing Keqiao District, Zhejiang Province, and Bowang District, Ma'anshan City, Anhui Province. The Shaoxing project will adjust its cooperation model, ceasing certain infrastructure and land development services by December 31, 2027. The Ma'anshan project will be terminated early, with asset transfers and a settlement payment plan extending until 2030, involving 10% annual payments from 2026. Furthermore, CFLD's board approved extending a 108 million yuan guarantee for its wholly-owned subsidiary, Qinhuangdao Jingyu Real Estate Development Co., Ltd., which is over 2,896.88% of CFLD's net assets.