Major shareholder's low-price subscription falls through; Zhunyou Petroleum terminates private placement

In the context of a booming industry, Junyou Co., Ltd. (002207) announced the termination of its long-planned private placement.

On the evening of March 11, Junyou Co., Ltd. disclosed that the company’s 13th (interim) meeting of the eighth board of directors approved the proposal to terminate the issuance of shares to specific targets and withdraw the application documents.

Regarding the reason for termination, the company stated that considering the current capital market environment and its overall development plan, it has decided to terminate this issuance of shares to specific targets and has proactively applied to the Shenzhen Stock Exchange to withdraw the relevant application documents. The company’s operations are normal, and this termination will not significantly impact its current production and business activities.

The earliest possible date for this private placement was October 2024. At that time, the company announced plans to issue A-shares to its controlling shareholder, Karamay Urban Construction Investment Development Co., Ltd. (“Karamay Urban Investment”), with a maximum of 50 million shares at 3.95 yuan per share, raising no more than 197.5 million yuan.

In terms of fund allocation, 66.602 million yuan will be used for upgrading oilfield service equipment, including purchasing XJ850 well-logging rigs, ZJ50D drilling rigs, and logging equipment to address aging production equipment; the remaining 131 million yuan will be used for working capital and debt repayment to ease high debt pressures. As of the end of September 2025, the company’s consolidated debt-to-asset ratio had reached 90.79%.

This private placement also further consolidates the controlling shareholder’s position. Regarding the ownership structure, before this issuance, Karamay Urban Investment directly held 18% of the company’s shares and, through voting rights entrusted to Yanshun Investment, held an additional 11.9999%, controlling a total of 29.9999% of voting rights. Based on the issuance of 50 million shares, its direct shareholding will increase to 31.14%, and total voting control will reach 41.22%. The private placement plan was accepted by the Shenzhen Stock Exchange on December 10, 2025.

Notably, recently, the A-share oil and gas sector has performed strongly, with Junyou Co., Ltd. stock price rising steadily from 7.4 yuan per share at the beginning of the year to a high of 16.01 yuan per share. The latest stock price is 11.86 yuan per share.

On March 4, after three consecutive limit-ups, Junyou Co., Ltd. issued an announcement regarding abnormal stock trading fluctuations and risk warning, noting that most of the company’s revenue currently comes from domestic oilfield technical services, with no oil and gas production or overseas operations. Additionally, the company’s main oil service equipment is primarily powered by gasoline and diesel, so rising refined oil prices will increase operating costs. Due to recent fluctuations in international crude oil and refined oil prices influenced by geopolitical factors, there remains uncertainty about the company’s future performance.

The latest earnings forecast indicates that Junyou Co., Ltd. expects a net loss attributable to shareholders of the listed company between 37 million and 43 million yuan in 2025. It projects revenue of 330 million to 360 million yuan, with net revenue after deductions of 327 million to 357 million yuan. As of the end of 2024, the company’s net assets attributable to shareholders were 67.2937 million yuan. The expected loss in 2025 will further reduce net assets.

The company stated that if, after audited deductions, its operating revenue in 2025 falls below 300 million yuan or if the loss causes the company’s audited net assets to be negative, its stock may face delisting risk warning (*ST) from the Shenzhen Stock Exchange.

(Source: Shanghai Securities Journal)