Yunnan Jinggu Forestry faces challenges amid stock volatility, production halt
Yunnan Jinggu Forestry's stock has shown abnormal fluctuations, with its share price deviating by over 12% across three trading days in late September and early October 2025. This comes as the company faces substantial operational risks, evidenced by a 45.03% year-on-year drop in first-half 2025 revenue to CNY 123.33 million and a net loss attributable to shareholders of CNY -124 million. The company's persistent negative net profits have led to an "other risk warning" designation on its stock since April 30, 2025.
Adding to the concerns, the company’s subsidiary, Huiyin Wood, has ceased production due to asset preservation measures and is embroiled in legal disputes involving approximately CNY 211.50 million in private lending. Furthermore, a CNY 19 million inventory shortfall at Huiyin Wood, potentially resulting in a CNY 9.69 million loss for Yunnan Jinggu Forestry based on its stake, has been reported and is under police investigation.
In a strategic move, controlling shareholder Zhou Dafu Investment plans to gratuitously donate 51% of its wholly-owned subsidiary Boda Digital Technology to Yunnan Jinggu Forestry. Concurrently, Zhou Dafu Investment intends to acquire 51% of Huiyin Wood from Yunnan Jinggu Forestry. Both transactions are undergoing further evaluation and are subject to shareholder approval, introducing an element of uncertainty.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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