(Yicai) June 11 -- Shares of China Fortune Land Development, a developer in court-led debt restructuring, fell after it said a consortium has been appointed as the firm’s restructuring investor. 

China Fortune [SHA: 600340] closed 5.2 percent lower at CNY1.29 (19 US cents) a share today. Due to the Shanghai Stock Exchange issuing a delisting risk warning, the stock’s daily trading band has been narrowed to 5 percent from 10 percent.

The committee formed to select China Fortune Land's restructuring investor has picked a consortium consisting of Chengfengerlai Digital Technology and Nanyang Mulanhua Real Estate, the Langfang-based builder announced yesterday.

Established in 2023, Chengfengerlai mainly provides computing power trading services to artificial intelligence companies. Founder Chen Yuan was previously general manager of Alibaba Group Holding's global technical services department.

Mulanhua Real Estate is a small private developer set up in 2017 and based in Henan province. It has a housing project there covering about 19,814 square meters, with plans for 892 households.

China Fortune Land fell into a debt crisis in 2021. Last November, it faced a judicial restructuring application from its creditor Longcheng Construction Engineering after failing to repay maturing debts, leading it to enter a pre-restructuring process and start selecting a restructuring investor.

China Fortune Land has posted annual losses since 2023. Its net loss ballooned 375 percent to CNY22.9 billion (USD3.4 billion) last year, while revenue plunged 64 percent to CNY8.6 billion (USD1.3 billion). For the first quarter of this year, the loss narrowed 37 percent to CNY1.7 billion from a year earlier, but revenue fell 28 percent to CNY853 million (USD126 million).

As of Dec. 31, China Fortune Land had net assets of minus CNY17.7 billion. If the company cannot return its net assets to positive territory by the end of this year, it will be forced off the stock exchange.

Editors: Dou Shicong, Martin Kadiev