On February 10, the controlling shareholder China Fortune Land Development Co.Ltd(600340) ( China Fortune Land Development Co.Ltd(600340) , 600340. SH) of China Fortune Land Development Co.Ltd(600340) Jiye Holding Co., Ltd. (hereinafter referred to as “Huaxia holding”) who was in a tight liquidity situation implemented the compulsory disposal procedures for the company’s shares held by Huaxia holding due to its stock pledge repurchase transaction and margin trading business (hereinafter referred to as “relevant financial institutions”) in accordance with relevant agreements, As a result, the shareholding ratio of Huaxia holdings decreased passively from November 30, 2021 to February 10, 2022, reaching 1.11% and 43519940 shares of the company’s current total share capital. The change does not touch the tender offer.
The announcement said that after the equity change, the proportion of China Fortune Land Development Co.Ltd(600340) shares held by Huaxia holdings and its persons acting in concert will be reduced from 23.56% to 22.45%; This equity change will not lead to changes in the controlling shareholders and actual controllers of the company.
From the perspective of change mode, relevant financial institutions disposed 19128000 shares of the company held by Huaxia holdings in the form of centralized bidding transaction from November 30, 2021 to January 18, 2022, accounting for 0.49% of the current total share capital of the company; On February 10, 2021, relevant financial institutions disposed of 24391940 shares of the company held by Huaxia holdings in the form of block trading, accounting for 0.62% of the current total share capital of the company.
On February 9, the previous day, China Fortune Land Development Co.Ltd(600340) disclosed the specific progress of the company’s debt restructuring. Up to now, the amount of financial debt in the debt restructuring plan has been contracted to realize debt restructuring is 42.918 billion yuan, and the corresponding amount of debt interest reduction and penalty interest exemption is 2.869 billion yuan, including:
1. Applicable to the method of “exchange, offset and connection”: the debt restructuring agreement signed by the company and its subsidiaries with relevant creditors involved the accumulated amount of debt of the company and its subsidiaries of 37.311 billion yuan, and the corresponding debt interest reduction and penalty interest exemption amounted to 2.869 billion yuan, accounting for 78.28% of the company’s latest audited net profit attributable to the company’s shareholders of 3.665 billion yuan. Including bonds and debt financing instruments, the amount of debt is 23.386 billion yuan, and the amount of other financial debt is 13.925 billion yuan;
2. Applicable “exhibition” method: the company and its subsidiaries reach the extension of the priority financial debt of the company and its subsidiaries by signing the debt restructuring agreement with relevant creditors, involving an amount of 415 million yuan;
3. Apply the “belt” method: take away about 5.193 billion yuan of financial debt through the sale of assets.
China Fortune Land Development Co.Ltd(600340) since the fourth quarter of 2020, there has been a phased shortage of liquidity. The company has failed to repay its financial debts on schedule, the financing business has almost stagnated, and the company’s performance has decreased significantly. In 2021, China Fortune Land Development Co.Ltd(600340) has been promoting its debt restructuring. China Fortune Land Development Co.Ltd(600340) it is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be – 33.1 billion yuan to – 39.1 billion yuan, and the net profit excluding non recurring profits and losses attributable to shareholders of Listed Companies in 2021 will be – 31.8 billion yuan to – 32.8 billion yuan.
In 2021, most of the principal and interest of China Fortune Land Development Co.Ltd(600340) loans failed to be repaid on schedule. According to the relevant provisions of the original loan agreement, the loan interest and penalty interest were accrued for nearly 20 billion yuan (subject to the audit report). The capitalization rate of superimposed interest decreased, resulting in an increase in the amount of interest included in financial expenses, accounting for a high proportion of the overall loss. As of December 21, 2021, the company has failed to repay the debt principal and interest on schedule, totaling 107.805 billion yuan.
As of February 10, China Fortune Land Development Co.Ltd(600340) closed at 3.4 yuan, down 0.87%.
