China Fortune Land Development has ultimately been designated with the *ST label, bringing it to the brink of delisting.

Mired in consecutive years of massive losses and a negative net asset value, the company, whose stock abbreviation changed to "*ST Huaxing" effective May 6, now faces the imminent threat of delisting.

Just as market sentiment turned deeply pessimistic, the company's core management announced a buyback plan worth 5 to 6 million yuan on May 10, aiming to support the pre-restructuring process.

On one side are years of financial bleeding and operational uncertainty; on the other are ongoing judicial restructuring efforts and gradually easing shareholder disputes. With precedents of successful corporate restructurings and delisting risk removal, whether China Fortune Land Development can navigate its way out of the delisting predicament through self-rescue and restructuring has become a focal point of market attention.

**Consecutive Massive Losses and Negative Net Assets** On May 6, China Fortune Land Development's stock abbreviation was changed to "*ST Huaxing," and it was placed under delisting risk warning and other risk warnings, effectively receiving the "starred and capped" designation.

The trigger for this designation is straightforward: audited results show that as of the end of 2025, the company's net assets attributable to shareholders were negative. It has recorded losses for three consecutive fiscal years, and the annual audit institution issued an audit report for the 2025 financial statements containing a paragraph highlighting significant uncertainty regarding the company's ability to continue as a going concern. In accordance with the relevant provisions of the "Shanghai Stock Exchange Listing Rules," the company's stock has been subject to delisting risk warnings and additional risk warnings since the market opening on May 6, 2026.

Data indicates that at the end of 2025, the company's net assets attributable to shareholders turned negative for the first time, reaching -17.743 billion yuan, a sharp decline of 533.29% year-on-year. The downward trend continued into the first quarter of 2026, with a single-quarter net loss attributable to shareholders of 1.7 billion yuan.

Furthermore, the company has incurred losses for three consecutive years. In 2023 and 2024, China Fortune Land Development reported net losses attributable to shareholders of 6.028 billion yuan and 4.817 billion yuan, respectively. The loss widened significantly to 22.859 billion yuan in 2025.

The situation for non-GAAP net profit is equally severe, with losses of 10.180 billion yuan, 11.581 billion yuan, and 22.604 billion yuan over the same three-year period.

The 2025 audit report for China Fortune Land Development indicates significant uncertainty regarding its ability to continue as a going concern.

According to Shanghai Stock Exchange rules, if the 2026 financial report continues to trigger financial delisting indicators, *ST Huaxing will indeed face delisting.

The "starred and capped" designation serves not only as a risk warning but also as a looming threat of delisting over China Fortune Land Development.

Following this negative development, the stock price plummeted. Over the three trading days from May 6 to May 8, *ST Huaxing's cumulative deviation decline exceeded 12%, reflecting market concerns through selling pressure.

**Management Plans 5 to 6 Million Yuan Buyback** Unexpectedly, just four days after receiving the *ST designation, China Fortune Land Development's management unveiled a buyback plan, signaling an effort to stabilize the situation.

On the evening of May 10, *ST Huaxing announced that the company's chairman and core management intend to increase their holdings of company shares through centralized bidding on the Shanghai Stock Exchange system within three months starting May 11, 2026. No price range has been set for this buyback, with the total amount planned to be no less than 5 million yuan and no more than 6 million yuan.

The buyback roster is notably robust, including Chairman Wang Wenxue, President Zhao Wei, Co-President Chen Huaizhou, Employee Director Zhuang Yong, CFO Zhong Jian, and Board Secretary Li Yushan, among other key executives.

As of now, Wang Wenxue directly holds 18.5906 million shares of China Fortune Land Development, representing 0.475% of the total share capital. Zhao Wei holds 2.8045 million shares, Chen Huaizhou holds 2.7418 million shares, Zhong Jian holds 1.041 million shares, and Li Yushan holds 494,200 shares.

The company stated the purpose of the buyback clearly: to actively advance the company's pre-restructuring matters, firmly support its risk resolution and ongoing operations, and effectively safeguard the legitimate rights and interests of all shareholders and creditors.

Of course, receiving the *ST designation is not a final verdict of deliction. According to listing rules, improving financial conditions through judicial restructuring to turn net assets from negative to positive can still lead to the removal of the risk warnings.

Xinhualian serves as a prime example.

In May 2023, Xinhualian was designated with *ST due to negative net assets attributable to shareholders from the previous year, changing its name to *ST Xinlian.

Just one week later, Xinhualian applied to the Beijing First Intermediate People's Court for bankruptcy restructuring and initiated pre-restructuring. Following the restructuring, Xinhualian achieved a net profit attributable to shareholders of 352 million yuan in 2023, reversing three consecutive years of losses.

In May 2024, Xinhualian successfully had the risk warnings removed, reverting its stock abbreviation to "Xinhualian," later renamed "Yingxin Development."

For China Fortune Land Development, resolving risks through restructuring is not an impossibility.

**The Restructuring Path Remains Challenging** As a leading property developer in the Beijing-Tianjin-Hebei region, China Fortune Land Development's troubles began with a liquidity crisis that erupted in 2021. Subsequently, the company disclosed a debt restructuring plan and worked towards resuming stock trading, but debt pressure has persisted since.

On November 16, 2025, China Fortune Land Development received a notice from the Langfang Intermediate People's Court. Creditor Longcheng Construction applied for the company's restructuring and the initiation of pre-restructuring procedures, citing the company's inability to repay due debts and apparent lack of solvency, yet still possessing restructuring value.

The Langfang Intermediate People's Court subsequently accepted the pre-restructuring application and appointed a provisional administrator.

However, this news immediately met with strong opposition from the largest shareholder, Ping An Group.

Directors affiliated with Ping An publicly questioned the compliance of the pre-restructuring procedures, arguing that they had not undergone board review processes. China Fortune Land Development responded that a pre-restructuring application initiated by a creditor does not require deliberation by the company's three major committees and only necessitates fulfilling information disclosure obligations.

In January of this year, the conflict between the parties intensified further. Ping An Asset Management and Ping An Life Insurance initiated arbitration, seeking 6.4 billion yuan in performance compensation and liquidated damages from China Fortune Holdings, with Wang Wenxue required to bear joint and several guarantee liability.

However, a recent development has emerged. An announcement released by China Fortune Land Development in mid-April indicated that the deadline for the provisional administrator's public recruitment and selection of intended restructuring investors was 5:00 PM on April 13, 2026. Within the stipulated deadline, some intended restructuring investors had submitted application materials to the provisional administrator.

After experiencing debt defaults, consecutive years of massive losses, and shareholder disputes, the path for China Fortune Land Development to revitalize its assets, turn net assets positive, and successfully remove the risk warnings through restructuring remains long and arduous.

On May 6, China Fortune Land Development stated in an announcement that the Langfang Intermediate People's Court's acceptance of the company's pre-restructuring does not signify the court's formal acceptance of the applicant's restructuring application for the company. As of the date of this announcement disclosure, the company has not received court documents regarding the acceptance of its restructuring application. There remains significant uncertainty about whether the company will subsequently enter the restructuring process.