On the evening of June 6, the “two connected boards” China Fortune Land Development Co.Ltd(600340) issued an announcement on abnormal fluctuations in stock trading, saying that the company’s current daily operation and external environment have not changed significantly, and is orderly promoting the signing of debt restructuring agreement, asset sale and other matters related to the implementation of debt restructuring plan according to the overall plan.
share price “two connected boards”
China Fortune Land Development Co.Ltd(600340) closing price deviated by more than 20% for three consecutive trading days on March 31, April 1 and April 6. In the past two trading days, the company’s shares gained the daily limit. In view of the abnormal fluctuation of the stock, the company shall check the relevant matters.
The announcement said that the company’s current daily operation and external environment have not changed significantly, and there is no major information that should be disclosed but not disclosed that affects the abnormal fluctuation of the company’s stock trading price.
At the same time, there is a problem of periodic tension on the company’s liquidity China Fortune Land Development Co.Ltd(600340) said that at present is affected by the epidemic in Langfang and other places, and some regions and relevant personnel are subject to varying degrees of control and isolation measures due to the epidemic. Under the guidance of provincial and municipal governments and special teams, the company is trying to overcome the impact of the epidemic and orderly promote the implementation of debt restructuring plan such as the signing of debt restructuring agreement and asset sale according to the overall plan , The company will continue to pay attention to the progress of the above matters and timely perform the obligation of information disclosure in accordance with the requirements of relevant laws and regulations.
Previously, on March 31, China Fortune Land Development Co.Ltd(600340) disclosed the progress of debt restructuring, and completed the signing of financial debt restructuring agreement, totaling about 104812 billion yuan, close to 50% of the total amount of debt to be restructured. In addition, the company sold two assets for 918 million yuan.
In addition, on the evening of April 5, China Fortune Land Development Co.Ltd(600340) announced that the board of directors had recently received the resignation reports submitted by Wu Xiangdong and Yu Jian respectively. Wu Xiangdong resigned as co chairman, director, member of the strategy committee, CEO and President of the seventh board of directors of the company for personal reasons; Yu Jian resigned as co president of the company for personal reasons. After Wu Xiangdong and Yu Jian resigned from the above positions, they will continue to work in the company and continue to assist the company in undertaking necessary debt restructuring.
A person close to China Fortune Land Development Co.Ltd(600340) said in an interview that there is no clear candidate to replace Wu Xiangdong at present. From the content of his resignation, Wu Xiangdong will not leave China Fortune Land Development Co.Ltd(600340) , but will continue to stay in the company and be responsible for the follow-up work. The work content of his responsibility is also very clear, that is, the management responsibility of the South headquarters and the disposal task of the asset package of the South headquarters.
Although the share price rebounded, in terms of performance, the 2021 annual performance forecast disclosed by China Fortune Land Development Co.Ltd(600340) revealed that the company’s net profit attributable to shareholders of Listed Companies in 2021 was – 33.1 billion yuan to – 39.1 billion yuan.
Huaxia holding holds shares or continues to be subject to compulsory disposal procedures
In the announcement of abnormal fluctuations in stock trading issued by China Fortune Land Development Co.Ltd(600340) on the 6th, the company said in the disclosure of risk tips, according to the agreements on financing business such as stock pledge of Huaxia holdings, the company’s shares held by Huaxia holdings are at risk of being continued to implement the mandatory disposal procedures by relevant financial institutions
In February 2021, China Fortune Land Development Co.Ltd(600340) sudden “thunder explosion” announcement said that the principal and interest amount involved in the overdue debt of the company’s subsidiaries was 5.255 billion yuan, involving bank loans, trust loans and other debt forms, but not bonds, debt financing instruments and other products. At the same time, due to the impact of multiple rounds of epidemics superimposed by the macroeconomic environment, industry environment and credit environment, from the fourth quarter of 2020 to the announcement date, the company needs to repay the financing principal and interest of 55.9 billion yuan when due, and the financing net cash flow excluding the support of major shareholders is – 37.1 billion yuan. The liquidity of the company is tense at different stages, resulting in the failure to repay some debts on schedule.
Subsequently, from February 18, 2021, China Fortune Land Development Co.Ltd(600340) has repeatedly disclosed the passive share reduction plan of Huaxia holdings through centralized bidding, all because the company’s shares as collateral were subject to compulsory disposal procedures by relevant financial institutions.
On September 9, 2021, China Fortune Land Development Co.Ltd(600340) announced that due to the compulsory execution of the company’s shares held by Huaxia holdings, the shareholding ratio decreased, and Ping An Life, the former second largest shareholder, and its persons acting in concert passively became the first largest shareholder of the company. However, China Fortune Land Development Co.Ltd(600340) also pointed out that Ping An Life and its persons acting in concert have no intention to become the controlling shareholder or actual controller of the company.
China Fortune Land Development Co.Ltd(600340) last disclosed the plan of passive share reduction through centralized bidding by controlling shareholders on February 21, 2022. The company received the notice from Huaxia holdings that the financial institutions related to the financing business of Huaxia holdings planned to implement compulsory disposal procedures for the company’s shares held by Huaxia holdings according to relevant agreements within 180 days after 15 trading days from the date of announcement disclosure (i.e. from March 15, 2022 to September 10, 2022), The default disposal of the underlying securities can be carried out through the centralized bidding of the stock exchange. According to relevant laws and regulations, no more than 782744 million shares can be disposed (reduced) (accounting for 2% of the current total share capital of the company), and the reduction price shall be implemented according to the market price.
