YJFC(SH:600265) Chang Jiang Shang Bao·2025-08-14 06:16Core Viewpoint - The acquisition of Huayin Wood Industry by ST Jinggu has turned problematic due to significant inventory losses and underperformance against profit commitments, leading to legal and financial complications for the company [2][3][4] Group 1: Inventory Loss and Legal Issues - ST Jinggu's subsidiary, Huayin Wood Industry, reported an inventory loss of approximately 19 million yuan due to misconduct by a former controlling shareholder, Wang Lansen, who allegedly sold off inventory without proper oversight [2] - The company has filed a report with the police regarding Wang Lansen's actions, which may involve criminal conduct, although no formal case has been opened yet [2] - Huayin Wood Industry is currently involved in seven lawsuits with a total claim amount of about 70.9 million yuan, which represents 74.55% of ST Jinggu's latest audited net assets [4] Group 2: Financial Performance and Profit Commitments - ST Jinggu acquired a 51% stake in Huayin Wood Industry for 270 million yuan, with performance commitments of net profits of at least 43.53 million yuan, 57.67 million yuan, and 64.04 million yuan for the years 2023 to 2025 [3] - However, Huayin Wood Industry reported a net loss of 32.45 million yuan in 2024, achieving only 14.3% of the promised performance over two years [3] - To mitigate financial pressure, ST Jinggu transferred a receivable of 142 million yuan related to performance compensation to its controlling shareholder, Zhou Dafu Investment [3] Group 3: Ongoing Financial Struggles - ST Jinggu has faced continuous losses in net profit since 2005, with an expected net loss of between 105 million yuan and 130 million yuan for the first half of 2025 [4] - The company's losses are attributed to declining performance in its main business of artificial board products, exacerbated by the real estate sector's downturn and increased regional competition [4] - The underperformance of Huayin Wood Industry and associated legal issues have further strained ST Jinggu's financial situation, leading to asset impairment and potential liabilities [4]