*ST Jinke faces another major test after restructuring worth hundreds of billions: It is expected to incur a significant loss after deducting non-recurring gains and losses by 2025, with three consecutive warnings about delisting risk.

China Economic News reporter Cheng Wei, Beijing report

*ST Jinke (000656.SZ), once regarded as a classic domestic real-estate developer bankruptcy reorganization case, is still facing new and severe challenges after completing a debt restructuring on the scale of a trillion yuan. Recently, the company has issued three consecutive risk-warning announcements that could lead to termination of its listing.

According to the 《2025 Annual Performance Forecast》 disclosed by the company at the end of January this year, after preliminary calculations by the company’s finance department, the company expects that in 2025 its net profit attributable to shareholders of the listed company will be between RMB 30 billion and RMB 35 billion. Its net profit after deducting non-recurring gains and losses is expected to be between RMB -35 billion and RMB -29 billion, and its operating revenue will be between RMB 6 billion and RMB 7.5 billion.

On March 19, 2026, the share price of *ST Jinke fluctuated narrowly in a low range, and market sentiment remained cautious.

Three “lit up” notices warning of delisting risk

On March 10, *ST Jinke issued its third risk-warning announcement regarding the company’s stock potentially being delisted. The announcement shows that Jinke Real Estate Group Co., Ltd. (hereinafter referred to as “the Company”) has audited negative net assets at the end of 2024. At the same time, in 2022, 2023, and 2024, the company’s net profits both before and after deducting non-recurring gains and losses have been negative for three consecutive years. Moreover, the company’s most recent annual audit report indicates that there is uncertainty regarding the company’s ability to continue operating. Under the relevant provisions of the 《Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange》 (hereinafter referred to as “the 《Listing Rules》”), the company’s stock trading is subject to delisting risk warning and layered with other risk warnings.

Previously, *ST Jinke had issued two similar risk-warning announcements on January 31, 2026, and February 14, 2026.

Article 9.3.12 of the 《Listing Rules》 provides that if an issuer’s listing company faces situations including that “among the three measures—audited total profit, net profit, and profit after deducting non-recurring gains and losses—the lowest among them is negative, and operating revenue is below RMB 300 million,” or that “audited net assets at the end of the period are negative,” the exchange may decide to terminate its listing and trading of the stock.

After deducting non-recurring items, or massive losses, highlight operating pressure

*ST Jinke previously entered the bankruptcy reorganization process due to its debt crisis, and on December 15, 2025, it announced that the reorganization was completed, becoming the first trillion-yuan-scale listed real-estate developer in China to resolve risks through judicial reorganization. This case has also been regarded as one of the largest reorganization projects in the real-estate industry to date.

Public information shows that this reorganization involves a debt scale of approximately RMB 147 billion, with more than 8,400 creditors.

However, according to the 《2025 Annual Performance Forecast》 disclosed by the company on January 31, 2026, the company expects that in 2025 its net profit attributable to shareholders of the listed company will be between RMB 30 billion and RMB 35 billion. But after deducting non-recurring gains and losses, the net profit is expected to be between RMB -35 billion and RMB -29 billion, and its operating revenue is only between RMB 6 billion and RMB 7.5 billion.

So-called non-recurring gains and losses mainly include gains from asset disposals, government subsidies, and other gains or losses that have no direct relationship with the main business. Based on these calculations, the scale of non-recurring gains formed through asset disposals and the like could be as high as about RMB 70 billion.

These data indicate that in 2025 the company’s profits mainly rely on support from non-recurring gains, while the main business is still in a clearly loss-making state. This is also a key reason why the audit report warns that there is uncertainty regarding the company’s ability to continue as a going concern.

Industry insiders point out that relying on asset disposals to achieve profitability is not sustainable. If the main business cannot restore its “cash-generating” capacity, the company’s long-term operating pressure will likely continue.

The “light-asset” transformation faces a test

“After the reorganization is completed, the company’s new management has clearly proposed a ‘light-asset operation’ strategy.” A former senior executive of *ST Jinke told the reporter from China Business News, 《China Business News》. This means the company will move away from the past high-leverage expansion model that relied on large-scale land acquisition and development.

In his view, the primary path for the light-asset transformation is to speed up the disposal of existing stock assets to reduce the debt level and improve cash flow.

However, judging from its financial condition, the company still faces significant repayment pressure. The 2025 third-quarter report shows that as of September 30, 2025, the company’s cash and cash equivalents balance was RMB 3.89 billion (of which restricted funds were RMB 982 million), while the total principal amount of interest-bearing liabilities reached RMB 68.96 billion. Of this, the principal amount of interest-bearing debt that was due but not repaid was RMB 54.393 billion.

In addition, the reorganization strategic investor acquired control over approximately RMB 170.3 billion worth of the company’s assets by investing RMB 2.628 billion into the company (calculated based on the 2025 third-quarter report data), which has also drawn market attention to the company’s corporate governance and its subsequent operating direction.

The aforementioned former senior executive also said that in terms of the composition of the board of directors and management, the proportion of members with a traditional real-estate development background has declined, which to some extent reflects a change in the company’s strategic transformation direction.

Publicly available information shows that the current chairman and general manager, Guo Wei, has experience in the real-estate industry, and among the executive team the co-president, Zhou Da, also previously served as the company’s chairman. In addition, Feng Lun, the director of the company’s expert advisory committee, is the founder of Wantong Group; however, his current business layout basically does not involve the real-estate development sector.

Evidently, against the backdrop of a deep adjustment in the industry, after completing its debt restructuring, *ST Jinke still needs to find a new balance between reshaping its profit-making model and maintaining its ability to continue operating.

(Editor: Hao Cheng Review: Zhu Ziyun Proofread: Yan Jingning)