China Fortune Land Development faces pre-restructuring amid financial strain

China Fortune Land Development received an application from Longcheng Construction Engineering Co., Ltd. for pre-restructuring and restructuring due to overdue debts and a lack of repayment ability. The Langfang Intermediate People's Court has accepted the application for pre-restructuring. The company's stock experienced an abnormal fluctuation, with its daily closing price deviation reaching 20% over two consecutive trading days (November 17-18, 2025).

For the first three quarters of 2025, China Fortune Land Development reported operating revenue of 3.88bn yuan, a 72.09% year-on-year decrease, and a net loss attributable to shareholders of 9.83bn yuan. As of September 30, 2025, shareholder equity was negative 4.74bn yuan, with a debt-to-asset ratio of 96.44%, an increase of 2.76 percentage points from the end of the previous year.

The company acknowledges significant uncertainties regarding the success of the pre-restructuring and its eventual entry into formal restructuring proceedings. Potential risks include the termination or invalidation of agreements signed during pre-restructuring, and the possibility of delisting if restructuring fails. The company will actively manage its operations while awaiting court decisions.