Core Points - The subsidiary of the listed company Jintongling, Jiangsu Jintongling Precision Manufacturing Co., Ltd., has been applied for bankruptcy liquidation due to severe insolvency, with a net asset of -133 million yuan as of June 2025 [1] - The parent company Jintongling is also facing financial difficulties, reporting a 48.7% decline in revenue to 370 million yuan in the first half of the year, and a net loss of 202 million yuan [1] - The former owner of Jintongling has been sentenced to six years in prison for fraudulently issuing securities, further complicating the company's financial situation [1] Financial Performance - Jiangsu Jintongling Precision Manufacturing was established in August 2019 with a registered capital of 10 million yuan, but has shown poor performance since its inception [1] - The subsidiary's revenue peaked in 2020 but reported a net loss of 22.31 million yuan in 2021 due to a lack of external orders, with further losses of 6.25 million yuan and 7.83 million yuan in 2023 and 2024 respectively [1] - As of September 2025, the subsidiary owes Jintongling approximately 156 million yuan, accounting for about 23% of the parent company's latest audited net assets [1] Legal and Regulatory Issues - The bankruptcy application was initiated by Nantong Shenguang Machinery Manufacturing Co., Ltd. due to unpaid fees from Jiangsu Jintongling Precision Manufacturing [1] - Jintongling has faced legal repercussions, including an 800,000 yuan fine for fraudulently issuing securities, and has been implicated in significant financial misconduct from 2017 to 2022 [1]

Core Viewpoint - The company Jin Tong Ling (300091.SZ) announced that its wholly-owned subsidiary, Jiangsu Jin Tong Ling Precision Manufacturing Co., Ltd. (referred to as "Precision Manufacturing"), is facing bankruptcy liquidation due to unpaid debts to a creditor, Nantong Shen Guang Machinery Manufacturing Co., Ltd. [1][5][6] Financial Performance - As of June 30, 2025, Precision Manufacturing reported a net asset value of -133 million yuan, indicating severe insolvency [1][7] - In the first half of 2025, Precision Manufacturing generated revenue of only 15.83 million yuan, with a net loss of 7.84 million yuan [7] - The company has accumulated debts of 156 million yuan owed to Jin Tong Ling, which represents approximately 23% of Jin Tong Ling's latest audited net assets [1][7] Historical Context - Precision Manufacturing was established in August 2019 with a registered capital of 10 million yuan, primarily engaged in precision manufacturing processing [2] - The subsidiary experienced significant revenue growth in 2020, but by 2021, it reported a net loss of 22.31 million yuan due to a lack of external orders [5] - The net losses continued in 2023 and 2024, amounting to -62.51 million yuan and -20.73 million yuan, respectively [5] Legal Proceedings - The creditor, Shen Guang Company, filed for bankruptcy liquidation against Precision Manufacturing after the latter failed to pay for services rendered under a contract signed in July 2024 [5][6] - The court has accepted the bankruptcy liquidation application, which will determine the financial impact on Jin Tong Ling based on the liquidation results [8]