YJFC(SH:600265) Mei Ri Jing Ji Xin Wen·2025-07-06 07:19Core Viewpoint - ST Jinggu (Jinggu Forestry) is facing legal issues involving its subsidiary, Tangxian Huiyin Wood Industry, which has been embroiled in private lending disputes leading to the seizure of approximately 50 million yuan in assets [1][3][4]. Company Summary - Tangxian Huiyin Wood Industry is a key subsidiary of ST Jinggu, focusing on the production and marketing of high-end particleboard and medium-density fiberboard, with products sold to major cities and well-known furniture manufacturers in China [3][4]. - In February 2023, ST Jinggu acquired a 51% stake in Huiyin Wood for approximately 270 million yuan, resulting in an 83.7% appreciation and generating goodwill of 92 million yuan [3][4]. Legal Issues - The lawsuits involve three plaintiffs claiming a total of 4,070 million yuan in principal and interest from Huiyin Wood and its shareholders due to loans provided between 2018 and 2024 [4]. - As of July 1, 2023, Huiyin Wood's finished goods warehouse, containing about 45,000 cubic meters of products valued at approximately 50 million yuan, has been seized, and its main bank account has been frozen with around 800,000 yuan [4][5]. Financial Performance - Huiyin Wood's financial performance has been concerning, with a net profit of 47 million yuan in 2023, meeting its performance commitment [5]. - However, for 2024, Huiyin Wood failed to meet its performance targets, with actual revenue of 389 million yuan and a net loss of 32 million yuan, significantly deviating from the forecasted revenue of 564 million yuan and net profit of 58 million yuan [6]. - The company attributed the poor performance to significant changes in the competitive landscape of the particleboard and fiberboard industry, leading to price declines and increased competition [6][7].