(Yicai) June 11 -- Shares of China Fortune Land Development, a developer stuck in a debt crisis, fell after it said that a consortium consisting of technology and real estate firms has become its restructuring investor.

China Fortune [SHA: 600340] dropped 4.4 percent to CNY1.30 (19 US cents) a share as of 2.15 p.m. today. The Shanghai Stock Exchange has issued a warning of delisting risk to the company, limiting the stock's daily price range to 5 percent from 10 percent.

The selection committee for China Fortune Land's restructuring investors has picked a consortium formed by Chengfengerlai Digital Technology and Nanyang Mulanhua Real Estate, the Langfang-based company announced yesterday.

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 restructuring investors.

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

Mulanhua Real Estate is a small private developer set up in 2017 that is based in central Henan province. It has a residential project in the area covering about 19,814 square meters, with plans for 892 households.

China Fortune Land has posted an annual loss since 2023, with its net loss widening 375 percent to CNY22.9 billion (USD3.4 billion) last year from 2024, while its 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 dropped 28 percent to CNY853 million (USD126 million).

As of Dec. 31, China Fortune Land had a net asset value of minus CNY17.7 billion. The company will be delisted if it is unable to turn a positive net asset value by the end of this year.

Editors: Dou Shicong, Martin Kadiev