"Replacement Zone" - Just these three words have once again put China Fortune in the spotlight of public opinion.

On a certain date, Huaxia Happiness released multiple announcements. Among them, the "Debt Restructuring Plan: Replacement Belt Scheme" involving "billions of yuan" caught the eye. The so-called "Replacement Belt" can be simply understood as replacing debt with assets. According to the "Replacement Belt" plan, Huaxia Happiness transferred assets (parks) worth billions of yuan to a state-owned enterprise in Langfang. The state-owned enterprise, upon receiving the assets, also took on Huaxia Happiness's debt of billions of yuan. For creditors, this process transformed the debtor into a state-owned enterprise. However, this change in debt and creditor status came with a condition: creditors also had to provide financing equivalent to the debt, i.e., a final loan of billions of yuan to support the state-owned enterprise.

The brilliance of the "Replacement Belt" lies first and foremost in the realization of asset value. For China Fortune, realizing the value of assets worth billions of yuan in today's market is not an easy feat. With assets worth billions of yuan, taking on billions of yuan in debt, this swap is highly valuable. Moreover, despite the exchange of assets and debt, China Fortune can still participate in the operation of the related assets. Through the swap, China Fortune has achieved a light asset operation. From the perspective of state-owned enterprises (SOEs), the development of SOEs requires specific projects for support. Acquiring a high-quality project is equally challenging, including the billions of yuan in supporting funds. Therefore, the "Replacement Belt" directly paves the way for the future projects of SOEs. For creditors, the debt is transferred from China Fortune to an SOE, directly reducing the risk level. Additionally, new loans are incubating new projects of SOEs (government-supported), creating new loan outlets. Thus, a "Replacement Belt" addresses the practical needs of three parties and provides solutions for each. According to China Fortune's plan, the "Replacement Belt" will be completed by the end of the year. It can be inferred that considerable preparation has already been made in advance.

The "Replacement Belt" debt restructuring model introduced by Huaxia幸福 is a utilization of its own advantageous resources. Huaxia幸福 has two prominent advantages. The first is industrial parks. Unlike other real estate developers, Huaxia幸福的 development focus is on industrial parks. Facing market adjustments, the most important asset in hand is also industrial parks (national industrial new towns). Using industrial parks as a way out is an advantage breakthrough. The second advantage is the good relationship between Huaxia幸福 and the government. This is also related to the export of Huaxia幸福的 industrial parks. The export of Huaxia幸福 is also the export for the government's industrial development implementation. Huaxia幸福的 "no debt evasion" and "resolute completion of projects" (official reports show that the company has completed 100% of the project completion tasks for the year), are not only the attitude and philosophy of the company's leaders, but also based on this relationship and confidence.

Many people are skeptical about China Fortune Land Development, primarily due to its financial statements. The company's net profit attributable to shareholders from the first half of 2020 to the first half of 2021 indicates a severe loss situation. In the first half of 2021, the net profit attributable to shareholders was -1.33 billion yuan (screenshot from Eastmoney.com). The losses in China Fortune's 2021 financial report show a trend of worsening. Judging from the financial statements alone, China Fortune is still mired in debt and losses, with no signs of improvement. However, despite this financial situation, China Fortune has shown considerable confidence. At the mid-year performance briefing on August 31, the company did not discuss the losses but publicly emphasized the success in its transformation. For example, in terms of operational business, in the first half of 2021, the industrial park added 15 new signed projects with a signed area of approximately 2.2 million square meters, an increase of 10% year-on-year. In the service business, Xingfu Zhaoshang focused on the direction of new and high-quality productivity, successfully signing 11 projects with a total fixed investment of 1.2 billion yuan, an increase of 10% year-on-year; in industrial leasing services, 10 projects were successfully signed, an increase of 10% year-on-year, with a total signed area of 2.2 million square meters, an increase of 10% year-on-year. Xingfu Property ranks 10th in the "Top 100 Property Service Enterprises in China" by China Index Academy, with 10 market-oriented expansion projects signed, totaling 1.2 billion yuan, an increase of 10% year-on-year, and 10 new city service projects signed, accounting for 10% of new projects.

Huaxia Happiness wants to convey to the public that despite the financial reports showing operational losses and ongoing debt restructuring, the strategic transformation of Huaxia Happiness, namely "fully transitioning to an industrial new town service provider," is being implemented. The company's ability to generate revenue is gradually strengthening. With this progress, regardless of whether investors have confidence, Huaxia Happiness itself is full of confidence.

Great Strategy Huaxia Happiness is full of confidence not only because of its enhanced self-sufficiency but also due to its next major strategy. This major strategy can be simply summarized as: "Low-Altitude Economy." Huaxia Happiness has announced partnerships with industry leaders such as Kebite, Yipeng Aviation, Zhongke Low-Altitude, and Xingwang Yuda. Wang Wenxue, the actual controller of Huaxia Happiness, also donated all.% of the equity of Cool Black Technology, a high-tech enterprise in the low-altitude economy field, to the company. Developing the "Low-Altitude Economy"? What does that mean? Is it about drones? Let's look at an example. On [specific date], Huaxia Happiness signed a strategic cooperation framework agreement with Dian Dian Innovation City (Zhongshan) to jointly build the "Greater Bay Area Low-Altitude Economy Industrial Park."

What is the background of this matter? Time rewinds to the year. At that time, Zhongshan City encountered issues in its development and proposed the "Four Difficulties to Sustain"—land, resources, population, and environment. These "Four Difficulties to Sustain" had been mentioned in Shenzhen a decade earlier. What is the solution? Industrial concentration and innovative development. The core of the specific implementation is: industrial parks. In the month of the year, Southern Metropolis Daily used this headline in its report on the Banfu Economic Development Zone in Guangdong: "Not Developing Real Estate but Building Connected Industrial Parks a Decade Ago, Now the First Phase Expected to Exceed 10 Billion in Output Value." The article introduced that from to , Zhongshan chose industrial parks as the direction of development. Now, the industrial park model is flourishing in Zhongshan City.

In fact, although industrial parks differ from purely residential development, they are also a part of real estate development. They not only carry national industrial policies but also support local economic development, and bear multiple functions such as urban-rural integration, industrial-urban integration, and urban renewal. Therefore, in response to Guangdong Province's current initiative of "high-quality development projects in hundreds of counties, thousands of towns, and tens of thousands of villages," Zhongshan City's solution remains: industrial parks. Zhongshan has already established ten major theme industrial parks with万亩-scale, guiding the intelligent, scaled, intensive, and green development of high-end equipment manufacturing industries. The city aims to seize the opportunities brought by the opening of the Shenzhen-Zhongshan Channel (a cross-sea passage connecting Shenzhen, Zhongshan, and Guangzhou, scheduled to open in [month/year], reducing the travel time from Shenzhen to Zhongshan to half an hour), and the integration of Shenzhen and Zhongshan, to create a new situation facing the Greater Bay Area. In [month/year], Zhongshan held a ceremony for the concentrated commencement of manufacturing projects in the first quarter, with [number] manufacturing projects in [number] towns and streets commencing construction, with a total investment of [amount] billion yuan. Throughout the year, Zhongshan arranged [number] major construction projects with a total investment of [amount] billion yuan and an annual planned investment of [amount] billion yuan. In [year], Zhongshan added [number] provincial industrial platforms, one of which is the Guangdong Banfu Economic Development Zone. The key tasks of Banfu Economic Development Zone are to promote seven "industrial reform" parks, which means upgrading low-efficiency industrial parks, while also planning for low-altitude economy. (A report from Southern Metropolis Daily downplays an issue: the development of industrial parks in Zhongshan has not been smooth sailing, and there have been a number of low-efficiency industrial parks, but these parks are now seeing new opportunities.) One of the seven "industrial reform" parks is the Diandian Innovation City, which is cooperating with China Fortune. China Fortune will provide comprehensive solutions for the entire process, focusing on investment attraction consultation, coordination, promotion, and industrial development. The goal of Diandian Innovation City is not only to build a modern industrial park integrating production, education, research, supply, sales, and residence, but its investor, Zhuohang Holdings Group, also has a "hundred cities trillion" plan. This plan aims to build [number] industrial parks in the Greater Bay Area and [number] characteristic industrial parks nationwide within the next [number] years, with an annual output of no less than [amount] trillion yuan (it feels like the rebirth of the former China Fortune).

After all this, the only point to make is that Huaxia Happiness's "low-altitude economy" is not just about drones, but about embedding itself into the new opportunities for the further development of industrial park economies. The development strategy diagram of the Dian Dian Innovation City (according to the official website image). Zhongshan is just one point in Huaxia Happiness's layout. Huaxia Happiness has already established cooperative relationships with: Langfang Airport Economic Zone, Nanjing Lishui Economic Development Zone, Shenyang Xuesong Economic Development Zone, Xianghe Investment Promotion Center, Zhuhai High-tech Construction, Xiaogan Xiaonan Commerce Bureau, Hebei Changli Economic Development Zone, Tianjin Ninghe District (Tianjin Future Technology City), etc. The geographical locations, transportation conditions, and development opportunities of these regions are similar to those of Zhongshan. Looking back at the "replacement zone" now, it is clear that it is leveraging debt resolution as an opportunity to integrate with the government's new round of development opportunities. If Huaxia Happiness truly takes off in the future, it may look back and savor this "replacement zone" once more.