Yunnan Jinggu Forestry's subsidiary faces loan acceleration, financial uncertainty

Yunnan Jinggu Forestry Company Limited and its controlling subsidiary, Tangxian Huiyin Timber Company Limited, have been notified by Cangzhou Bank Baigou New City Branch that loans totaling RMB 14.825 million, originally due on March 29, 2026, have been accelerated to November 2, 2025. This acceleration demands immediate, lump-sum repayment, severely exacerbating Huiyin Timber's debt risk and casting a significant shadow on its operational viability. The outstanding principal balance represents 155.88% of the parent company's last audited net assets.

The accelerated loans comprise three facilities: RMB 9.215 million secured by Huiyin Timber's factory buildings and industrial land, RMB 3.610 million secured by its general equipment, and a RMB 2.000 million credit loan. The former actual controllers of Huiyin Timber, Cui Huijun and Wang Lancun, have provided joint and several liability guarantees for these loans.

Yunnan Jinggu Forestry has formed a special response team and is engaging with Cangzhou Bank to find a resolution. The company also stated it would protect its legitimate interests through legal means if necessary. Furthermore, the company is currently restructuring by preparing to sell a 51% stake in Huiyin Timber, though the final outcome of this process remains uncertain.