Group 1 - The core point of the announcement is that Shenzhen Jinjia Group Co., Ltd. (referred to as "the company" or "Jinjia Shares") has disclosed that its controlling shareholder, Shenzhen Jinjia Venture Capital Co., Ltd. (referred to as "Jinjia Venture Capital" or "the controlling shareholder"), may have 37.27 million shares subject to judicial enforcement, which represents 8.05% of its holdings and 2.57% of the company's total share capital [1][2][3] - The court has issued an enforcement ruling due to a loan contract dispute involving multiple parties, including Jinjia Venture Capital, and has ordered the sale of the shares to settle the debt [2][3][4] - The enforcement of these shares will not change the actual control of the company or have a direct significant impact on its governance structure and operations [1][6] Group 2 - The company has engaged in a joint investment with related parties, including its director and a professional investment institution, to establish a partnership aimed at enhancing strategic capabilities and optimizing resource allocation [7][8] - The partnership, named Shanghai Yinbo Iteration Silicon-based Venture Capital Partnership (Limited Partnership), has a total investment of RMB 30 million, with the company contributing RMB 5 million, accounting for 6.17% of the initial fundraising [8][10] - The partnership has completed registration and obtained a business license, and has also completed the necessary filing with the China Securities Investment Fund Industry Association [10][11]

Core Viewpoint - The performance of Jinjia Co., Ltd. has been declining, with its controlling shareholder facing potential judicial enforcement of shares, which may impact the company's stability and governance structure [1][5][10]. Financial Performance - Jinjia Co., Ltd. has experienced a continuous decline in revenue and net profit over the past two and a half years, with revenue figures of 51.89 billion, 39.45 billion, and 28.57 billion from 2022 to 2024, reflecting a year-on-year change of 2.40%, -23.96%, and -27.58% respectively [7][8]. - The net profit has also decreased for three consecutive years, with figures of 1.97 billion, 1.18 billion, and 719.85 million, showing year-on-year changes of -80.64%, -40.03%, and -39.19% [8][9]. - In the first half of 2025, the company reported revenue of 12.39 billion, a decline of 16.56% year-on-year, and a net profit of 1.22 billion, down 32.54% year-on-year [8][9]. Shareholder Control and Legal Issues - The controlling shareholder, Shenzhen Jinjia Venture Capital Co., Ltd. (Jinjia Chuangtou), may face judicial enforcement of 58.4 million shares, which represents 12.61% of its holdings and 4.02% of the total share capital of Jinjia Co., Ltd. [1][3]. - If the judicial enforcement is fully executed, Jinjia Chuangtou's shareholding could decrease from 463 million shares to 405 million shares, reducing its total shareholding percentage from 31.90% to 27.88% [5]. - Jinjia Chuangtou and its concerted parties have been involved in 15 major lawsuits in the past twelve months, with a total amount in dispute reaching 4.01 billion [10][11]. Business Segments - Jinjia Co., Ltd. operates in three main business segments: premium paper packaging, new materials, and new tobacco products [6]. - The revenue from the premium paper packaging segment decreased by 36.70% year-on-year, while the new materials segment saw a decline of 24.91%. Conversely, the new tobacco segment experienced a significant increase in revenue of 157.67% year-on-year [9].

Group 1 - The company received a negative audit report on internal controls for the 2024 financial year from Zhongxing Caiguanghua Accounting Firm, leading to a risk warning on its stock trading by the Shenzhen Stock Exchange [1] - The company is required to disclose potential delisting risk due to the negative audit report, as per the Shenzhen Stock Exchange rules [1] - The company has established a leadership team and working groups to improve internal control mechanisms and compliance awareness among employees [2][3] Group 2 - The company is actively taking measures to address the issues raised in the negative audit report, including enhancing governance and internal control systems [2] - The company is facing a potential forced execution of 32 million shares held by its controlling shareholder due to non-compliance with legal obligations [2] - The company is cooperating with the China Securities Regulatory Commission (CSRC) regarding an investigation into alleged information disclosure violations [3]