Farewell to the core real estate business! Jingxi Investment Development plans to transfer its real estate operations to the controlling shareholder, with an expected loss of over 1 billion yuan in 2025.

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Invest in stocks with Golden Kylin Analyst Reports—authoritative, professional, timely, comprehensive—helping you discover potential thematic opportunities!

On March 15, Jingtou Development (600683) announced that the company plans to transfer assets and liabilities related to its real estate development business to its controlling shareholder, Jingtou Company. The specific scope of this transfer is still to be further negotiated and confirmed by both parties. The transaction will be paid in cash and does not involve issuing shares, nor will it affect the company’s equity structure or result in a change of controlling shareholder.

Jingtou Development stated that the counterparty for this transaction is Jingtou Company, its controlling shareholder. According to relevant regulations, this constitutes an associated transaction. Based on preliminary research and estimates, this transaction is expected to constitute a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies.”

The transaction price has not yet been determined; it will be based on the valuation assessed by an asset appraisal agency registered with the state-owned assets supervision department or other authorized entities. The company will organize audits and evaluations in accordance with relevant regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange. The transaction still requires approval from the company’s board of directors and shareholders’ meeting.

According to the announcement, the target of this transaction includes assets and liabilities related to the company’s real estate development business. The specific scope is still to be further negotiated and confirmed by both parties. As of September 30, 2025, Jingtou Company holds 40% of the company’s shares and is the controlling shareholder. According to regulations, Jingtou Company is an affiliated legal entity of the company.

As of December 31, 2024, Jingtou Company’s total assets were 927.621 billion yuan, with net assets of 314.897 billion yuan; for the year 2024, operating revenue was 14.197 billion yuan, and net profit was 2.766 billion yuan (audited, consolidated basis).

As of September 30, 2025, Jingtou Company’s total assets were 955.345 billion yuan, with net assets of 328.761 billion yuan; from January to September 2025, operating revenue was 8.884 billion yuan, and net profit was 2.063 billion yuan (unaudited, consolidated basis).

Regarding the impact of this matter on the listed company, Jingtou Development states that its current main business is real estate development. Through this transaction, assets and liabilities related to its real estate development business will be transferred to its controlling shareholder, Jingtou Company. After completion, the company will no longer engage in real estate development.

This transaction is expected to be a major asset sale, paid in cash, which will not affect the company’s equity structure or result in a change of controlling shareholder. If successfully completed, the company’s operating income and total assets are expected to decrease, potentially improving the company’s debt-to-asset ratio and optimizing its asset structure.

Jingtou Development also notes that this matter is still in planning stage, with the specific scope, price, and other details yet to be finalized. No agreements have been signed, and the transaction plan still requires further discussion and approval in accordance with legal and regulatory requirements and the company’s Articles of Incorporation.

On the same day, Jingtou Development announced that its stock prices on March 11, 12, and 13, 2026, experienced a cumulative deviation of over 20% in closing prices over three consecutive trading days, constituting abnormal stock trading fluctuations.

After self-inspection and written inquiries with its controlling shareholder, Beijing Infrastructure Investment Co., Ltd., the company confirmed that, aside from the disclosed major asset sale and related-party transaction, there are no other major undisclosed matters. The company’s current operations are normal, its main business remains real estate development, with no significant changes. No media reports, market rumors, or hot concepts are believed to significantly impact the stock price. During the abnormal fluctuation period, the company’s directors, senior management, controlling shareholder, their concerted actors, and other major shareholders did not buy or sell the company’s stock.

Jingtou Development’s main businesses include department store retail, foreign trade, and real estate development and management.

The company has reported losses for two consecutive years. In 2024, it achieved operating revenue of 1.417 billion yuan, down 86.69% year-over-year; net loss attributable to parent was 1.055 billion yuan, compared to a loss of 659 million yuan in the previous year; net profit excluding non-recurring gains and losses was a loss of 1.119 billion yuan, compared to a loss of 703 million yuan last year.

On January 16, Jingtou Development released its 2025 performance forecast. According to preliminary estimates by the company’s financial management department, net profit attributable to the parent for 2025 is expected to be between -1.23 billion and -1.025 billion yuan, with net profit for ordinary shareholders between -1.488 billion and -1.283 billion yuan. The net profit attributable to other equity holders, who are holders of the company’s perpetual financing products, is estimated at 258 million yuan.

The forecast for net profit attributable to the parent after deducting non-recurring gains and losses is expected to be between -1.272 billion and -1.067 billion yuan; after deducting interest on perpetual financing products, the net profit attributable to ordinary shareholders is expected to be between -1.53 billion and -1.325 billion yuan.

The main reasons for the expected performance loss are increased interest expenses from project financing and preliminary impairment testing of project assets under accounting standards, with some assets expected to be impaired based on prudence.

Additionally, on December 29, 2025, Jingtou Development announced the termination of its 2024 targeted share issuance.

It is worth noting that this private placement has lasted for a year. On December 31, 2024, Jingtou Development announced raising 595 million yuan through a private placement at a price of 4.47 yuan per share. The subscriber is its controlling shareholder, Beijing Infrastructure Investment Co., Ltd. The funds are planned to be used entirely for working capital and debt repayment.

In the secondary market, as of the close on March 13, the stock price increased by 10.05% to 8.76 yuan per share, with a latest market value of 6.489 billion yuan. Since the beginning of the year, the stock has steadily risen, with a total increase of 105.15%.

Source: DuChuang Finance

(Original source: Shenzhen Business Daily)