Yunnan Jinggu Forestry addresses stock volatility amid restructuring plans

Yunnan Jinggu Forestry Company Limited acknowledged abnormal stock trading fluctuations between September 23 and 25, 2025, with a cumulative deviation exceeding 12%. This prompted a reply to an inquiry from its controlling shareholder, Chow Tai Fook Investment Co., Ltd. The company revealed plans to receive a 51% equity donation in Shanghai Bodatek Intelligent Technology Co., Ltd. from Chow Tai Fook Investment Co., Ltd., which is pending shareholder approval and other procedures, introducing uncertainty. Concurrently, Chow Tai Fook Investment Co., Ltd. intends to acquire a 51% stake in Tangxian Huiyin Wood Industry Co., Ltd. from Yunnan Jinggu Forestry, with transaction details still under discussion.

The company's financial performance shows a significant decline, with H1 2025 revenue at CNY 123,325,800, a 45.03% year-on-year decrease. Net profit attributable to shareholders was -CNY 123,996,200, indicating substantial operating risks. Huiyin Wood Industry faces multiple challenges, including lawsuits totaling approximately CNY 152,002,500, and a recent inventory deficit of approximately CNY 19,000,000 due to alleged misappropriation by a former director. These issues have led to the suspension of its production lines.

Given continuous negative net profits and uncertainties in its going concern, the company's stock has been subject to other risk warnings since April 30, 2025. These conditions persist, and investors are advised to exercise caution. The company confirmed no other material undisclosed information or trading activity by key insiders during the abnormal fluctuation period.