Yunnan Jinggu Forestry faces delisting risk amid asset sale

Yunnan Jinggu Forestry's stock showed abnormal fluctuation with cumulative deviation exceeding 12% over three consecutive trading days. The company is selling its 51% stake in subsidiary Tangxian Huiyin Wood Industry, which could drastically reduce its primary business scale and trigger delisting risk if revenue falls below RMB300 million with negative net profit.

Huiyin Wood Industry faces lawsuits and asset preservation measures totaling RMB95.15 million, representing 100.05% of Jinggu Forestry's net assets, forcing shutdown of its fiberboard and particleboard production lines. An inventory discrepancy of RMB19 million resulted in estimated losses of RMB9.69 million for Yunnan Jinggu Forestry.

The company projects net losses of RMB10.5-13 million for first half 2025.