15 Days of 12 Limit-Up ST Jinglan: If the stock price continues to rise abnormally, a suspension for investigation may be applied for

On the evening of February 23, ST Jinglan announced that from January 23 to February 13, the company’s stock price increased by 86.90%. The short-term price increase was significant, and the company’s performance had not changed substantially. However, recently, the company’s stock price has severely diverged from its performance, and investors participating in trading may face considerable risks. If the company’s stock price continues to rise abnormally in the future, the company may apply for a trading halt for investigation. Investors are advised to invest rationally and pay attention to investment risks.

Wind data shows that on February 13, ST Jinglan hit the daily limit, with the stock price at 3.14 yuan per share, and a total market value of 9 billion yuan. During 15 trading days (January 26 to February 13), the stock received 12 daily limit-ups.

In its announcement, ST Jinglan stated that regarding the abnormal fluctuations in the company’s stock trading, the company’s board of directors is conducting an investigation into the company, its actual controller, and relevant matters. The results show that there have been no significant changes in the company’s recent operating conditions or internal and external business environment; the information previously disclosed by the company up to the time of the announcement does not require supplementation or correction; no recent public media reports have disclosed or possibly disclosed material non-public information that could significantly impact the company’s stock trading price; the company and its controlling shareholders and actual controllers have no major undisclosed matters related to the company, nor are there any major matters under planning; upon inquiry, the company’s controlling shareholders and actual controllers did not buy or sell the company’s stock during the abnormal trading period; and the company does not violate fair disclosure regulations.

The announcement also highlights multiple risks, including: overdue performance compensation and new compensation risks for controlling shareholders, risks of large losses in earnings forecasts, liquidity risks, industry and market risks, high pledge ratios of controlling shareholders’ shares, risks of unfulfilled historical performance compensation by Zhongke Dingshi, and asset restructuring commitment risks.

Regarding overdue performance compensation and new compensation risks for controlling shareholders, the announcement states that according to the “Reorganization Investment Agreement” signed during the company’s 2023 restructuring period with controlling shareholder Yunnan Jiajun, Yunnan Jiajun committed that, excluding the impact or contribution factors of Zhongke Dingshi within the company’s consolidated financial statements, the company’s net profit attributable to shareholders after deducting non-recurring gains and losses in 2024 would not be less than 30 million yuan. After calculation, the company’s net profit attributable to shareholders after deducting non-recurring gains and losses in 2024, excluding Zhongke Dingshi’s impact, is -22.0851 million yuan, triggering a performance compensation obligation of 52.0851 million yuan. As of the announcement date, the company has only received 6 million yuan in compensation, with 46.0851 million yuan overdue. Yunnan Jiajun currently faces capital turnover pressure and has pledged 100% of its shares in the company, which has attracted regulatory attention. The ability to pay the remaining compensation in full and on time remains uncertain.

Furthermore, the company expects that in 2025, after excluding Zhongke Dingshi’s impact, its net profit attributable to shareholders will be significantly below the promised minimum of 40 million yuan in the “Reorganization Investment Agreement.” The performance gap is expected to trigger new cash compensation obligations, with a substantial amount. Coupled with the fact that the 2024 performance compensation for controlling shareholders has not been fully paid and their shares are heavily pledged, the ability to pay the new compensation in full and timely remains uncertain.

Regarding the risk of large losses in earnings forecasts, the announcement states that according to the “2025 Performance Forecast,” the company’s net profit after deducting non-recurring gains and losses in 2025 is expected to be between -220 million and -150 million yuan, further widening the loss compared to 2024. Although the company’s operating income is expected to grow in 2025, its main business is still in a strategic transformation phase and has not yet achieved stable profitability. Whether the company can successfully turn losses into profits in the future depends on multiple uncertain factors such as industry cycle fluctuations, market price changes, cost control effectiveness, recovery of financing capacity, and the implementation of new businesses. Investors should be fully aware of these risks.

In terms of liquidity risk, the announcement shows that as of the third quarter of 2025, the company’s cash on hand was 9.1263 million yuan. The company remains in a strategic transformation period, with several subsidiaries planning projects requiring capital investment. If the relevant funds cannot be fully secured as planned, it may lead to project delays, slower expansion of subsidiaries, and unmet project implementation expectations, thereby affecting the company’s performance growth and overall strategic transformation results.

ST Jinglan’s 2025 semi-annual report indicates that the company’s main business involves harmless disposal of industrial and urban solid waste, comprehensive recycling of secondary resources, soil remediation, comprehensive management and protection of cultivated land soil environment, and high-standard farmland construction. These activities are mainly undertaken by the company’s controlling subsidiary Yunnan Yesheng and wholly owned subsidiary Gexiu Xinghua.