Stock price surges over 116% before emergency suspension! ST Jinglan warns: Expected loss exceeding 150 million yuan in 2025, controlling shareholder's 46 million yuan compensation still "defaulted"

On the evening of February 26, ST Jinglan (also known as Jinglan Technology, SZ000711, stock price 3.64 yuan, market value 10.399 billion yuan) announced that due to the recent sharp increase in the company’s stock price, which has severely deviated from its performance, trading will be suspended for investigation starting February 27.

The “Daily Economic News” reporter noted that from January 23, 2026, to February 26, 2026, the company’s stock price increased by a total of 116.67%, with multiple instances of abnormal fluctuations. However, on the other hand, the company is mired in losses: for 2025, it expects a net profit after non-recurring gains and losses of -150 million to -220 million yuan, with the loss margin further widening year over year.

What worries the market even more is that although the company’s controlling shareholder once made a “military order,” the performance compensation of 52.0851 million yuan for 2024 remains unpaid, with 46.0851 million yuan overdue. Additionally, all of its shares are pledged 100%. The company’s cash on hand is limited, with only over 9 million yuan remaining.

On one side is enthusiastic capital pursuit; on the other, the harsh reality of being deep in a liquidity trap and doubts about new business expansion. Is this surge in ST Jinglan a dawn of a turnaround or an illusion of risk accumulation?

Stock Price Rise Lacks Positive Support, ST Jinglan Suspends Trading for Investigation

According to the company’s announcement on February 26, ST Jinglan’s stock price closed with a deviation of over 13.13% for three consecutive trading days on February 24, 25, and 26, indicating abnormal trading fluctuations.

Looking at the longer period, from January 23, 2026, to February 26, 2026, the stock price increased by 116.67%. During this period, the stock repeatedly experienced abnormal fluctuations, including one instance of severe abnormal fluctuation.

In response to such a sharp short-term price increase, the company announced that, to protect investors’ interests, it will conduct an investigation into the trading fluctuations. The stock has been suspended from trading starting February 27, 2026, for up to three trading days, pending the investigation and subsequent disclosure of relevant information.

The “Daily Economic News” reporter observed that this rally seems to lack substantial positive support. The announcement explicitly warns that the company’s latest price-to-book ratio is significantly higher than the industry average, posing a risk of rapid stock price decline in the future.

Additionally, the company’s self-inspection and verification with its controlling shareholder and actual controller as of the announcement date confirmed that there are no major undisclosed matters. The information previously disclosed by the company does not require supplementation or correction, and there have been no significant changes in recent operations or the internal and external business environment.

From an operational perspective, ST Jinglan faces severe challenges. The company pointed out that its current stock price increase is seriously disconnected from its operational performance. The company has been in continuous loss for many years. After completing bankruptcy reorganization at the end of 2023, its net profit attributable to shareholders after deducting non-recurring gains and losses in 2024 is -119 million yuan.

According to the “2025 Performance Forecast,” ST Jinglan expects its net profit after deducting non-recurring gains and losses in 2025 to further decline to between -150 million and -220 million yuan, compared to a loss of 119 million yuan in the same period last year. Although revenue is expected to grow in 2025, its main business remains in a strategic transformation phase and has not yet achieved stable profitability.

Reorganization “Pie in the Sky” Difficult to Realize, Limited Cash on Hand of Only 9 Million Yuan

In addition to losses, ST Jinglan faces a more pressing issue: the “credibility deficit” caused by repeated defaults by its controlling shareholder and a broken capital chain.

During the 2023 restructuring, the controlling shareholder, Yunnan Jiajun Target Material Technology Co., Ltd. (“Yunnan Jiajun”), promised that ST Jinglan’s net profit after non-recurring gains and losses attributable to the parent in 2024 would not be less than 30 million yuan (excluding impacts from Zhongke Dingshi). However, the actual profit calculated was only -22.0851 million yuan, directly triggering a performance compensation obligation of 52.0851 million yuan.

As of now, ST Jinglan has only received 6 million yuan of compensation, with 46.0851 million yuan overdue. This breach of contract led to a notice of criticism from the Shenzhen Stock Exchange at the end of 2025 and a correction order from the Heilongjiang Securities Regulatory Bureau.

Adding to the difficulty, considering the company’s significant loss forecast for 2025, which is expected to be far below the agreed profit target of 40 million yuan, it indicates a potential trigger for new, larger cash compensation obligations. Moreover, since Yunnan Jiajun has pledged 100% of its shares in the company (mainly for loans and guarantees), there is great uncertainty about whether the subsequent compensation payments can be made fully and on time.

Meanwhile, the company’s liquidity crisis has become apparent. As of the end of the third quarter of 2025, ST Jinglan’s cash on hand was only 9.1263 million yuan.

Although the company announced in December 2025 that it planned to initiate the injection of Xinlian Technology or its main business assets into the listed company, attempting to rescue itself through the “zinc and indium solid waste resource utilization” track, capital thresholds remain a major obstacle.

As the company’s chairman Ma Liyang previously stated, “Funding is the core factor that determines the scale and speed of development.” Given its weak self-sustaining ability and the controlling shareholder’s cash flow difficulties, the feasibility of this asset injection plan remains uncertain.

On the other hand, the high-density ITO target business that ST Jinglan is counting on also faces an uncertain future. The technology barrier is high, and the products to be produced have not yet been market-verified. According to industry practice, customers typically require 6–12 months for product stability testing, making it difficult to generate significant short-term performance, with risks including order acquisition difficulties and technological iteration.

Amid multiple negative factors and risks, this suspension and investigation by ST Jinglan may be a moment for the market to calmly reassess its true value.

(Source: Daily Economic News)