Jing Ji Guan Cha Wang·2025-08-20 05:53Core Viewpoint - ST Jinggu's stock price has experienced significant fluctuations due to the announcement of a major asset restructuring involving the sale of a 51% stake in Huayin Wood Industry, which is expected to have a substantial impact on the company's financial performance and risk profile [1][2]. Group 1: Company Performance and Financials - The sale of Huayin Wood Industry is seen as a positive move for ST Jinggu, allowing the company to shed a financial burden, despite the potential for a drastic reduction in revenue [1][2]. - In 2024, Huayin Wood Industry accounted for 87.02% of ST Jinggu's audited revenue, and the sale may trigger delisting risk if revenue falls below 300 million yuan and net profit is negative [1][2]. - Following the acquisition of Huayin Wood Industry in 2021 for 270 million yuan, ST Jinggu's revenue from the wood business surged by 872% to 551 million yuan in 2023, but the company faced a net profit loss of approximately 7.28 million yuan in 2024, marking a decline of about 1252.56% [2][5]. Group 2: Governance and Management Issues - There have been significant governance failures at ST Jinggu, including the misappropriation of assets by former executives of Huayin Wood Industry, leading to a loss of approximately 9.69 million yuan for the company [3][4]. - The company has been involved in multiple legal disputes, with claims totaling around 95.15 million yuan, which is equivalent to 100.05% of the company's net assets [4]. - ST Jinggu's management has been criticized for inadequate due diligence during the acquisition of Huayin Wood Industry, resulting in unforeseen liabilities and operational challenges [4]. Group 3: Market Conditions and Future Outlook - The wood industry is undergoing significant changes, with increasing competition and declining prices, which are expected to further impact ST Jinggu's performance [5][6]. - As of mid-2025, ST Jinggu is projected to report a net loss of between 1.05 billion yuan and 1.30 billion yuan, indicating continued financial struggles [6]. - The company's total liabilities have increased, with a debt-to-asset ratio of 73.48%, reflecting a challenging financial position compared to industry peers [5].