List of A-share losses in 2021, China Fortune Land Development Co.Ltd(600340) or occupy a place!
On April 29, China Fortune Land Development Co.Ltd(600340) disclosed that the 2021 annual report showed that the company realized a loss of 39.03 billion yuan of net profit attributable to the parent , approaching the upper limit of the previous performance forecast loss of 33.1 billion yuan to 39.1 billion yuan.
China Fortune Land Development Co.Ltd(600340) 2021 annual report discloses some financial data
Correspondingly, China Fortune Land Development Co.Ltd(600340) as of April 29, the closing market value was 11.74 billion yuan, and from the beginning of last year to April 29, the cumulative decline was 76.8%
As of April 29, China Fortune Land Development Co.Ltd(600340) share price trend
The shareholding ratio of has not changed from 2021 to the end of March 2022, indicating that it still has a glimmer of expectation for the future
Shareholding of China Fortune Land Development Co.Ltd(600340) top ten shareholders by the end of March 2022
accrued loan interest and default interest of 20.2 billion yuan
For the huge losses in 2021, China Fortune Land Development Co.Ltd(600340) previously mentioned in the performance forecast that it was mainly affected by the superposition of multiple epidemics in the macroeconomic environment, industry environment and credit environment. The liquidity of company has been strained periodically since the fourth quarter of 2020, the financial debt has not been repaid on schedule, and the financing business has almost stagnated, which has a serious impact on the company’s operation and led to a sharp decline in the company’s performance
China Fortune Land Development Co.Ltd(600340) introduced that in 2021, most of the principal and interest of the company’s loans were not repaid on schedule, with a total of 107805 billion yuan as of December 21, 2021. The substantial increase in liquidated damages and penalty interest related to borrowings led to a significant increase in financial expenses, further aggravating the range of losses.
China Fortune Land Development Co.Ltd(600340) 2021 financial expense related data
On April 29, China Fortune Land Development Co.Ltd(600340) replied to the inquiry letter, saying that the company accrued 20.2 billion yuan of loan interest and penalty interest in 2021 in accordance with the relevant provisions of the original financing loan agreement. Among them, from the first quarter to the third quarter of 2021, 13.2 billion yuan of interest and penalty interest have been accrued according to the agreement, and 7 billion yuan of interest and penalty interest have been accrued in the fourth quarter.
China Fortune Land Development Co.Ltd(600340) 2021 the accrued interest and default interest continued to increase in the fourth quarter of 2021, mainly due to the increasing overdue time of the principal and interest of the debt that was originally due and failed to be repaid on schedule, resulting in the increase of the amount of accrued default interest.
At the same time, China Fortune Land Development Co.Ltd(600340) ‘s liquidity has been strained since the fourth quarter of 2020, which has led to the continuous increase of the scale of the principal and interest of the debt that has not been repaid on time, the continuous increase of the provision of loan interest, and the further increase of the amount of the corresponding provision of default interest according to the default terms agreed in the original agreement due to overdue.
liquidity risk leads to business obstruction
China Fortune Land Development Co.Ltd(600340) is divided into industrial new town and related businesses, commercial real estate and related businesses. In 2021, in addition to the impact of the epidemic, the company was affected by its own liquidity risk, resulting in a year-on-year decline in relevant business income.
Taking the business of industrial new town as an example, in China Fortune Land Development Co.Ltd(600340) 2021, affected by its own liquidity risk, some entrusted regional governments were worried about the regional sustainable performance ability of the industrial new town in the later stage, and suspended the relevant settlement work of the industrial new town project.
China Fortune Land Development Co.Ltd(600340) said that the company could not recognize the income from industrial development services without obtaining the documents confirming the income from the government, resulting in a sharp decline in the income from industrial development services.
China Fortune Land Development Co.Ltd(600340) , the government collection in some entrusted areas was less than expected, and the aging of accounts receivable and contract assets increased, resulting in an increase in the provision for bad debts of accounts receivable and the impairment loss of contract assets. When auditing the financial report of China Fortune Land Development Co.Ltd(600340) 2021, the accounting firm took the recoverability of the settlement accounts receivable from the government Park as the key audit matter.
at the end of China Fortune Land Development Co.Ltd(600340) 2021, the book balance of accounts receivable was 60.133 billion yuan, including 58.904 billion yuan of settlement accounts receivable from government parks. The settlement accounts receivable from government parks are generated from the company’s industrial new town business, and the main customers are local governments. The company, combined with historical experience, forward-looking information prediction and the nature of the industry, withdraws 3.529 billion yuan of bad debt reserves for such receivables according to the expected credit loss.
China Fortune Land Development Co.Ltd(600340) ‘s contract assets correspond to the land consolidation, public infrastructure and park operation and maintenance business of industrial new town, and the customers are the local governments of various regions.
Meanwhile, China Fortune Land Development Co.Ltd(600340) in 2021, affected by its own liquidity risk, comprehensively reduced its investment, and the investment in industrial new town decreased sharply. The progress of land consolidation and supporting facilities construction promised to enterprises in the park lagged behind, resulting in the delay of the actual investment progress of new enterprises in the Park. The delayed investment progress of enterprises in the park affected the commencement and production of subsequent industrial projects, and the settlement resources of industrial development service income decreased significantly.
debt restructuring enters the implementation stage
China Fortune Land Development Co.Ltd(600340) introduced that the company’s debt restructuring plan has entered the implementation stage, the signed amount of financial debt is nearly half, and the asset transaction has made a key breakthrough.
In retrospect, since the fourth quarter of 2020, China Fortune Land Development Co.Ltd(600340) faces periodic liquidity risks. In order to mitigate this risk, the company began to formulate the China Fortune Land Development Co.Ltd(600340) debt restructuring plan at the beginning of 2021, and disclosed the main contents of the China Fortune Land Development Co.Ltd(600340) debt restructuring plan on October 8, 2021.
On December 9, 2021, the creditor Committee of financial institutions voted and adopted the debt restructuring plan. On December 27, 2021, the board of directors of the company deliberated and approved the proposal on the implementation of debt restructuring, deliberating and authorizing the matters related to debt restructuring transactions involved in the debt restructuring plan.
as of April 29, 2022, the financial debt in China Fortune Land Development Co.Ltd(600340) debt restructuring plan has been signed, and the total amount of debt restructuring has reached 106187 billion yuan, and the corresponding amount of debt interest reduction and penalty interest exemption has reached 9.401 billion yuan . At the same time, the company will make overall arrangements for cash cashing according to the progress of asset disposal and collection, and actively fulfill its repayment obligations in accordance with the debt restructuring plan.
The income from debt restructuring shall be included in the corresponding period according to the signing date of the restructuring agreement as of December 31, 2021, the total amount of debt restructuring signed has reached 2.269 billion yuan, and the corresponding amount of debt interest reduction and penalty interest exemption has reached 94 million yuan, which is recognized as debt restructuring income in the 2021 annual report
In terms of asset sale, China Fortune Land Development Co.Ltd(600340) has completed the signing of equity transfer agreements of some real estate project companies in Fengtai and international business, Yongqing industrial new town and Guangyang industrial new town platform company, and is promoting follow-up relevant arrangements in accordance with the agreement, realizing a breakthrough in asset transaction under the debt restructuring plan.
According to the relevant arrangements of the debt restructuring plan, potential investors with strong capital strength and good synergy will be actively sought for the sale of assets with strong liquidity, and the recovered funds are mainly used to pay off financial debts.
Up to now, China Fortune Land Development Co.Ltd(600340) paid or planned cash cashing includes: since February 22, 2022, the company has started the first batch of cash cashing arrangements and paid a total of 50 billion yuan to relevant creditors who have signed the debt restructuring agreement in batches.
Starting from April 29, 2022, China Fortune Land Development Co.Ltd(600340) started the second batch of cash cashing arrangements and made cash cashing to relevant creditors who have signed the debt restructuring agreement in batches, totaling 1.416 billion yuan.
liquidity risk gradually eliminated
What is the reason for the huge loss but no change in the number of shares in 2028 ?
China Fortune Land Development Co.Ltd(600340) said that with the gradual implementation of debt restructuring, the liquidity problem of the company has been alleviated to a certain extent, the financial situation has been improved to a certain extent, and the confidence of all parties has been boosted.
On April 29, China Fortune Land Development Co.Ltd(600340) released the first quarterly report of 2022, which showed that the company realized a net profit attributable to the parent company of 2.775 billion yuan, mainly due to the increase of income from debt restructuring.
At the same time, by the end of the first quarter of 2022, China Fortune Land Development Co.Ltd(600340) short-term loans and other accounting subjects had decreased significantly year-on-year, mainly due to the signing of debt restructuring agreement in the current period, the debt was extended according to the agreement, and the short-term debt became long-term debt.
However, China Fortune Land Development Co.Ltd(600340) 2022 lost 4.288 billion yuan of net profit after non deduction in the first quarter, mainly due to the increase of financial expenses. In the first quarter of 2022, the company incurred financial expenses of 3.901 billion yuan, a year-on-year increase of 44.05%.
China Fortune Land Development Co.Ltd(600340) 2022 first quarter financial data
While fully promoting the debt restructuring plan to ensure sustainable operation, China Fortune Land Development Co.Ltd(600340) explore the direction of strategic transformation and realize the transformation from heavy asset model to light combination model.
China Fortune Land Development Co.Ltd(600340) said that the company will activate its business activities with mechanism innovation, ensure sustainable development based on debt risk resolution and house guarantee, reshape its development strategy with the reconstruction of industrial new town business, take asset operation and management as the total resource pool and general reserve, and build a five in one business system with investment management as the core.
