Proposed Divestiture of Real Estate Business, Jingvest Development Faces Two Consecutive Trading Halts

On the evening of March 15, Jingtou Development, a well-established real estate company, announced that it plans to transfer all assets and liabilities related to its real estate development business to its controlling shareholder, Beijing Infrastructure Investment Co., Ltd. (hereinafter referred to as “Jingtou Company”).

The announcement also added that if the transfer proceeds smoothly, 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. After the transaction is completed, Jingtou Development will no longer engage in real estate development, fully divesting from this core business.

Prior to this announcement, Jingtou Development’s stock experienced abnormal fluctuations, with the closing price deviation exceeding 20% for three consecutive trading days from March 11 to 13, 2026. Today, at market open, Jingtou Development continued its limit-up streak, and as of the time of writing, the stock is trading at 9.64 yuan per share, with a total market value of 7.141 billion yuan.

Public information shows that as of September 30, 2025, Jingtou Company held 40% of Jingtou Development’s shares, making it the company’s controlling shareholder. Jingtou Company itself is a state-owned sole proprietorship established with funding from the Beijing State-owned Assets Supervision and Administration Commission.

Jingtou Development was founded on September 8, 1992, and is headquartered in Beijing with a registered capital of 741 million yuan. Its main business has long focused on real estate development, operation, and leasing, with a core focus on developing rail transit vehicle bases. It has formed a unique TOD (Transit-Oriented Development) rail property development model, with most projects concentrated in Beijing, while also engaging in commercial, hotel, and related sectors.

The launch of this asset transfer plan is closely related to Jingtou Development’s recent operational performance. In 2023, the real estate industry remained in a correction cycle, increasing pressure on Jingtou Development. The company achieved operating revenue of 10.641 billion yuan, a year-on-year increase of 91.65%, but net profit attributable to the parent was -6.59 billion yuan, a significant decline of 426.04% year-on-year.

In 2024, Jingtou Development’s performance further deteriorated, with significant declines. According to the annual report, the company achieved operating revenue of 1.417 billion yuan, down 86.69% year-on-year; net profit attributable to the parent was -1.055 billion yuan, down 59.98%; net profit after deducting non-recurring gains and losses was -1.119 billion yuan, down 59.13%. Basic earnings per share were -1.86 yuan, gross profit margin decreased by 3.98 percentage points, and period expense ratio surged to 43.19%.

Entering 2025, Jingtou Development’s operational situation remained unimproved. The company’s new construction area was 24,200 square meters, down 86.73% year-on-year; contracted sales amounted to 2.998 billion yuan, down 44.48%; and contracted sales area was 76,000 square meters, a decrease of 66.33% year-on-year.

The company’s 2025 annual performance forecast shows an expected net profit attributable to the parent company of between -1.23 billion and -1.025 billion yuan, and net profit after deducting non-recurring gains and losses of between -1.272 billion and -1.067 billion yuan, indicating a further solidification of the continuous loss pattern.

Regarding the reasons for the losses, Jingtou Development stated that: first, increased interest expenses related to project costs; second, the company conducted preliminary impairment testing on project assets according to enterprise accounting standards and, based on prudence, expects to recognize impairment on some project assets.