Sou Hu Cai Jing·2025-08-16 04:19Core Viewpoint - ST Jinggu plans to transfer 51% equity of Huayin Wood Industry to its controlling shareholder, Chow Tai Fook Investment, amid significant operational challenges and financial losses [1][6][7]. Group 1: Asset Transfer Details - The transaction is expected to constitute a major asset restructuring, with a minimum estimated transaction price of 133 million CNY [6][7]. - The transfer aims to isolate Huayin Wood's debts, lawsuits, and operational risks, thereby improving ST Jinggu's financial condition [7][9]. - Huayin Wood's revenue is projected to account for 87.02% of ST Jinggu's audited revenue for 2024, indicating a drastic reduction in ST Jinggu's operational scale post-transaction [6][9]. Group 2: Financial and Operational Challenges - Huayin Wood reported a loss of approximately 19 million CNY in inventory due to mismanagement, leading to significant operational disruptions [3][10]. - The company is currently facing multiple legal issues, with 12 asset preservation measures totaling around 95.15 million CNY [10]. - ST Jinggu's stock price increased by 4.95% to 19.93 CNY per share, with a total market capitalization of 2.6 billion CNY, despite ongoing financial difficulties [3][4]. Group 3: Historical Context and Future Outlook - ST Jinggu acquired 51% of Huayin Wood for 270 million CNY in 2023, with performance guarantees that have not been met, leading to financial strain [12][13]. - The company anticipates continued losses, projecting a net loss of 105 million to 130 million CNY for the first half of 2025 [14]. - The ongoing challenges in the artificial board market, influenced by real estate trends and increased competition, are expected to further impact ST Jinggu's performance [14].