NSWRC(SH:600165) Zheng Quan Ri Bao Zhi Sheng·2025-12-17 04:26Core Viewpoint - Ningxia Zhongke Biotechnology Co., Ltd. (*ST Ningke) has achieved a five-day consecutive trading limit increase, indicating market optimism following the announcement of a significant stock transfer and the commencement of its restructuring plan execution [1][2]. Group 1: Company Developments - On December 16, *ST Ningke announced the transfer of 882 million shares (54.64% of total shares) to a designated account of the restructuring investor, Hunan Xinheng Biotechnology Co., Ltd., which now holds 357 million shares (22.10% of total shares) and is the controlling shareholder [1]. - The company has been ruled by the court to terminate its restructuring process and enter the execution phase of the restructuring plan, which is critical for avoiding bankruptcy [1][2]. - The core subsidiary, Ningxia Zhongke New Materials Co., Ltd., has resumed operations after a production halt but faces uncertainty regarding sustainable operational capabilities [3]. Group 2: Financial Performance - The company reported a net profit attributable to shareholders of -538 million yuan for the year 2024, with a net profit of -404 million yuan after deducting non-recurring gains and losses, indicating ongoing financial distress [3]. - The company has received a qualified audit report highlighting significant uncertainties regarding its ability to continue as a going concern, following three consecutive years of negative net profits [3]. Group 3: Restructuring Risks - The restructuring plan execution phase may involve fundamental changes such as debt restructuring, changes in equity structure, and potential introduction of strategic investors, which could create conditions for restoring operational capabilities [2]. - However, there are significant risks during this phase, including the complexity of execution, potential failure to meet improvement expectations, and market or industry environment changes, which could lead to bankruptcy if the plan fails [2][3].