Doubling Bull Stock Jingtou Development Plans Major Asset Restructuring

On the evening of March 15, Jingtou Development announced that the company plans to transfer assets and liabilities related to its real estate development business to its controlling subsidiary, Jingtou Company, using cash payment. This transaction does not involve issuing shares, will not affect the company’s equity structure, and will not result in a change of the company’s controlling shareholder. The above matter is expected to constitute a major asset restructuring and related-party transaction.

Wind data shows that on March 13, Jingtou Development’s stock price hit the daily limit, closing at 8.76 yuan per share, with a total market value of 6.5 billion yuan. Since the beginning of this year, the stock price has continued to rise, with a cumulative increase of 105.15%.

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Expected to constitute a major asset restructuring

The announcement indicates that Jingtou Development intends to transfer assets and liabilities related to its real estate development business to its controlling subsidiary, Jingtou Company. The specific scope of this transaction still needs further negotiation and confirmation between the parties. The transaction will be paid in cash, will not involve issuing shares, will not affect the company’s equity structure, and will not lead to a change in the company’s controlling shareholder.

The counterparty to this transaction is Jingtou Company, the company’s controlling subsidiary. As of September 30, 2025, Jingtou Company holds 40% of the company’s equity. According to the relevant regulations of the Shanghai Stock Exchange Listing Rules, Jingtou Company is an affiliated legal person of the company. Based on the relevant provisions of the Shanghai Stock Exchange Listing Rules, this transaction constitutes a related-party transaction. Preliminary research and estimates suggest that 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; the specific price will be based on the valuation assessed by assets registered with the state-owned assets supervision department or other authorized agencies. The company will organize intermediary agencies to conduct audits, evaluations, and other work in accordance with relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange. The transaction still requires approval by the company’s board of directors and shareholders’ meeting.

The company stated that this matter is still in the planning stage, and the specific scope, price, and other elements of the transaction have not been finalized. No agreement has been signed by the parties, and the transaction plan still needs further discussion and negotiation. Necessary decision-making and approval procedures will be carried out in accordance with relevant laws, regulations, and the company’s Articles of Association.

Jingtou Development mentioned in the announcement that if this matter is successfully completed, the company’s operating income and total assets will decrease, which is expected to improve the company’s debt-to-asset ratio and optimize its asset structure. Currently, the company’s main business is real estate development. After this transaction, the company will no longer engage in real estate development.

Stock trading abnormal fluctuations

On the evening of March 15, Jingtou Development issued an announcement regarding abnormal fluctuations in its stock trading. The announcement states that the company’s stock prices on March 11, 12, and 13 experienced a cumulative deviation of over 20% in daily closing prices over three consecutive trading days. According to the relevant regulations of the Shanghai Stock Exchange Trading Rules, this constitutes abnormal stock trading fluctuations.

The company conducted a self-inspection and found that its current production and operation are normal, and its main business remains real estate development with no significant changes.

The company also verified in writing with Jingtou Company, its controlling subsidiary, that as of the disclosure date, aside from the major asset sale and related-party transaction already disclosed, there are no other major matters or risks that need to be disclosed but have not been disclosed.

The company expects to achieve a net profit attributable to the parent company of -1.23 billion to -1.025 billion yuan in 2025. The main reasons for the projected loss are: first, increased interest expenses related to real estate projects; second, the company conducted preliminary impairment tests on project assets according to enterprise accounting standards and, based on prudence, expects to recognize impairment on some project assets.