Assessment Report on Going Concern Ability of Jinke Co., Ltd. After Restructuring

Jinke Co., Ltd. (stock code: 000656.SZ) officially completed its judicial restructuring in December 2025, becoming the largest restructuring case in the history of China’s real estate industry, involving a debt scale of 147 billion yuan and serving more than 8400 creditors [1]. After the restructuring, the company introduced a new management team composed of senior industry professionals including former President of China Merchants Bank Ma Weihua, veteran real estate professionals Guo Wei and Feng Lun, and established a strategic goal of transforming into a comprehensive real estate operator [2]. However, based on the latest financial data and market performance, Jinke Co.'s going concern ability still faces severe challenges: the company’s net assets at the end of 2024 were negative, and its net profit before and after excluding non-recurring gains and losses has been negative for three consecutive years from 2022 to 2024. The audit report indicates uncertainty about the company’s going concern ability [3]. This report will systematically evaluate Jinke Co.'s going concern ability after restructuring from multiple dimensions including financial health, debt structure, operational management capability, and strategic transformation path.

Jinke Co.'s judicial restructuring is a landmark event in risk resolution in China’s real estate industry. The entire restructuring process lasted two and a half years, and finally adopted a comprehensive settlement plan of “cash + stock + trust beneficiary rights” to resolve all 147 billion yuan of existing debts [1]. In terms of restructuring investment, the Shanghai Pinqi Consortium (including Shanghai Pinqi under Feng Lun’s Yufeng Group and Beijing Tianjiao Lvyuan) as industrial investors, together with institutions such as Great Wall Asset Management and Sichuan Development Securities Fund, injected a total of 2.628 billion yuan, providing valuable liquidity support for the company [2]. Currently, liquidation funds for bankruptcy expenses, employee claims, etc. have all been paid or reserved specially, 5.294 billion shares of capital reserve转增 shares have been transferred, and relevant trust and asset management agreements have officially taken effect, marking the successful conclusion of the restructuring work [3].

During the restructuring process, Chongqing Municipality attached great importance to it, specially established a working group, and carried out systematic guidance in conjunction with courts and regulatory authorities, providing key guarantees for the promotion of restructuring. This multi-party collaboration model—a combination of high-quality capital, local state-owned assets, and central enterprise AMCs—provided strong support for Jinke Co.'s debt restructuring and laid the foundation for subsequent operations [1]. It is worth noting that the restructuring plan also clearly arranged part of the funds to be used定向 for “ensuring housing delivery” work. From January to November 2025, Jinke completed the delivery of 14,300 residential and commercial projects with a delivery area of 2.2 million square meters, effectively protecting people’s livelihood rights while resolving debt risks [1].

After the completion of restructuring, Jinke Co.‘s debt structure has undergone fundamental changes. Through methods such as debt-to-equity swaps, cash settlement, and trust beneficiary rights replacement, the company has significantly reduced the scale of interest-bearing liabilities, and the repair of the balance sheet has created conditions for subsequent operations. However, it is necessary to clearly recognize that debt clearance is not the “finish line” for real estate enterprises’ safety; sustainable operation ability is the core standard to test whether an enterprise can truly “rebirth” [1]. From the current data, Jinke Co. still faces considerable operational pressure: its non-recurring profit and loss-excluded net profit has been negative for three consecutive years from 2022 to 2024. Even if it successfully applies for the revocation of the delisting risk warning related to restructuring, it may still be subject to other risk warnings due to going concern ability issues [1].

Based on financial analysis data from Jinling AI, Jinke Co.'s current financial status shows significant characteristics of operational distress [0]. From the perspective of valuation indicators, the company’s price-to-earnings ratio (P/E) and price-to-book ratio (P/B) are both negative, reporting -0.40 times and -0.41 times respectively, which reflects that the company is currently in a state of loss and has negative shareholder equity. From the perspective of profitability, the return on equity (ROE) is only 1.13%, the net profit margin is -320.15%, and the operating profit margin is -305.47%. All profit indicators show that the company’s main business is in a state of serious loss [0].

From the perspective of liquidity indicators, the current ratio is 0.72 and the quick ratio is 0.26, both below the safety threshold. A current ratio below 1 means that the company’s current assets are insufficient to cover current liabilities, and the short-term debt repayment pressure is large; a lower quick ratio indicates that the company’s quick assets (i.e., current assets minus inventory) have seriously insufficient ability to guarantee current liabilities [0]. In terms of free cash flow, the company’s latest free cash flow is -677,081,322 yuan, indicating a continuous net outflow of operating cash flow [0]. These indicators comprehensively show that even after completing debt restructuring, Jinke Co.'s financial health status is still relatively fragile.

From the evolution of financial data over the past five years, Jinke Co.'s performance has undergone a sharp transformation from profit to huge loss [4]. In 2020 and 2021, the company still maintained a normal profit state, but began to show significant losses in 2022, and the losses continued to expand thereafter. In the whole year of 2024, although the company’s operating income had a recovery growth, the scale of net loss was still huge, and both the net profit attributable to parent company and the non-recurring profit and loss-excluded net profit showed large negative values [4]. This situation of “increasing revenue without increasing profit” or even “losing more as revenue increases” reflects the huge challenges the company faces in business transformation and cost control.

It is worth noting that the financial analysis tool classifies the company’s financial attitude as “aggressive”, which is manifested in a low proportion of depreciation and capital expenditure, meaning that the quality of the company’s reported profits may have certain water content [0]. The debt risk assessment shows “medium risk”, indicating that although the debt crisis has been alleviated through restructuring, the fragility of the financial structure still exists [0]. From a comprehensive financial perspective, there is still significant uncertainty about Jinke Co.'s going concern ability, and it is difficult to achieve self-hematopoiesis in the short term.

According to the company’s announcement on December 25, 2024, due to negative net assets at the end of 2024 after audit, and negative net profit before and after excluding non-recurring gains and losses for three consecutive years from 2022 to 2024, and the latest audit report indicating uncertainty about the company’s going concern ability, the company continued to be subject to delisting risk warning and additional other risk warnings from December 26 onwards [3]. The auditor’s doubts about the company’s going concern ability are key risk factors that need to be focused on when evaluating the company’s investment value. This means that restructuring is only the first step to help the company “survive”, but to truly achieve sustainable operation, it needs time to verify.

According to the relevant provisions of the “Shenzhen Stock Exchange GEM Stock Listing Rules”, the company faces multiple delisting risks: financial delisting risks (continuous losses, negative net assets), normative delisting risks (doubts about going concern ability), etc. Completing restructuring is only “continuing life”, and completely solving the delisting risk is still a big mountain ahead [3]. Investors need to pay close attention to the improvement of the company’s subsequent financial status and the latest determination of the company’s going concern ability by the regulatory authorities.

Against the background that the industry is still in the adjustment period, relying on the real estate main business to achieve a comeback is no longer realistic [3]. Jinke Co.'s original business segments have been seriously affected by the continuous downturn of the real estate market, with sales scale dropping sharply and gross profit margin under continuous pressure. After the completion of restructuring, the core problem that the company needs to solve is how to find new profit growth points in the industry downturn cycle and restore self-hematopoiesis function.

From the perspective of delivery data, the company completed the delivery of 14,300 residential and commercial projects with a delivery area of 2.2 million square meters from January to November 2025 [1]. This shows that the company still has certain project development and delivery capabilities, but whether the realization of these stock projects can be converted into continuous cash flow and profits remains to be seen. In the short term, the company still needs to rely on existing real estate business and assets, and gradually realize the return to positive operating cash flow through the collaboration and empowerment of restructuring investors [3].

After the completion of restructuring, Jinke Co. obtained 2.628 billion yuan of restructuring investment funds, and the debt pressure was substantially relieved. However, liquidity risks still need continuous attention. The company’s current ratio and quick ratio are both below 1, indicating insufficient short-term debt repayment ability. In addition, the continuous negative free cash flow means that the company is still consuming cash at the operational level [0]. If the company cannot realize the return to positive operating cash flow as soon as possible, it may need to rely on external financing or asset disposal to maintain operations.

From the perspective of debt structure, the restructuring plan reduced the scale of interest-bearing liabilities through methods such as debt-to-equity swaps, but the company still needs to face the payment pressure of operating liabilities such as supplier arrears, employee salaries, and other payables. In addition, the trust beneficiary rights and other arrangements formed during the restructuring process also need to be兑现 gradually in the future. Comprehensive evaluation shows that the company’s short-term liquidity risk is controllable, but the improvement of operating cash flow still needs to be concerned in the medium and long term.

In October 2025, Huang Hongyun, the founder who led the company for 27 years, stepped down, and the new management team took office [3]. The new team has a luxurious lineup: former President of China Merchants Bank Ma Weihua as honorary chairman, veteran real estate professional Guo Wei as chairman and president, former chairman of Hainan Yedao Group Wang Xiaoqing as vice chairman, and Feng Lun as a member of the expert advisory committee [3]. This team has deep connections and rich experience in finance, real estate, asset management and other fields, and its core capabilities are highly consistent with the company’s new strategic direction.

During his tenure at China Merchants Bank, Ma Weihua promoted a number of innovative businesses and has a deep understanding of financial operations and capital integration; Guo Wei, as a veteran in the real estate industry, has rich experience in real estate development and operation management; Feng Lun’s Yufeng Group has a unique layout in the field of medical and health real estate; Wang Xiaoqing has rich experience in enterprise management and capital operation [2]. Such a “star-studded” team provides talent guarantee for Jinke Co.'s strategic transformation. How the management team leads the company out of the predicament during the industry adjustment period will be the key factor determining whether the company can achieve continuous operation.

After restructuring, Jinke Co. established a new development strategy: to build a comprehensive real estate operator with scientific and technological innovation and operation management as core capabilities [3]. To achieve this goal, the company will set up four business segments: investment management, development services, operation management, and special assets. Among them, investment management will become the core of the new business segments, and the company plans to realize asset-light operation through investment management business and reduce dependence on traditional development business [3].

In terms of specific cooperation, the company has launched a series of strategic layouts. In January 2025, Shanghai Pinqi signed a strategic cooperation agreement with Alibaba Assets, which will start with Jinke Co.'s restructuring project and carry out cooperation in special asset disposal and real estate fields together; in mid-December 2025, the company reached a strategic cooperation with CITIC Trust, aiming to explore a model combining financial trusteeship and industrial operation, accelerate the activation of stock assets and value enhancement [2]. These cooperations indicate that the company is actively promoting strategic implementation with the help of external resources.

From the perspective of transformation direction, light asset businesses such as agency construction, property management, and asset management have become the company’s key development directions [1]. Such businesses do not require large-scale capital investment and can fully reuse the company’s existing product capabilities, team experience and management standards, which is a common choice for distressed real estate enterprises to restore “hematopoiesis” ability. However, transformation is not an overnight success, and it takes time to verify the feasibility and profitability of the new business model.

The external environment facing Jinke Co. is full of challenges. Currently, China’s real estate market is still in a deep adjustment period, with sales scale continuing to shrink, prices under pressure, and industry credit risks still being cleared [1]. In such a macro background, even real estate enterprises that have completed restructuring face pressure from slow sales collection and narrowing profit margins. According to data from the China Index Academy, as of December 2025, 21 distressed real estate enterprises have completed or been approved for debt restructuring or reorganization, with a cumulative debt resolution scale of 1.2 trillion yuan [1]. This shows that industry risk clearance is still ongoing, and the competition and survival pressure faced by Jinke Co. cannot be ignored.

Although the policy environment of the real estate industry has improved marginally, the general tone of “housing is for living, not for speculation” has not changed, and the recovery of demand still takes time. Against this background, the traditional development business model of real estate enterprises faces fundamental challenges. Although Jinke Co.'s strategic direction of transforming into a comprehensive real estate operator is correct, it needs to face the pressure brought by the overall contraction of the industry.

Although the new management team has a luxurious lineup, it also faces arduous challenges. First, how to realize the de-stocking and value realization of stock projects during the industry downturn is the primary problem that the company needs to solve. Second, the implementation of the new strategy takes time, and it takes a long incubation period from business layout to profit contribution. Third, the company’s original organizational structure and management system need to be reshaped to adapt to the new business model. Fourth, the multi-party interest relationships formed during the restructuring process need to be balanced, and the demands of investors, management, creditors and other parties need to be coordinated.

In addition, the company also needs to deal with multiple challenges such as talent loss, brand damage, and supplier relationship repair. During the industry adjustment period, the retention and attraction of excellent talents are crucial; the reconstruction of brand trust takes time and practical actions; the repair of supplier and partner relationships also affects the company’s normal operations. These are the practical problems that the new management team needs to face.

According to relevant regulations, due to negative net assets at the end of 2024 and negative non-recurring profit and loss-excluded net profit for three consecutive years, Jinke Co. continues to be subject to delisting risk warning and additional other risk warnings [3]. This means that the company’s stock still faces delisting risk, and investors need to pay close attention to the improvement of subsequent financial status. If the company cannot eliminate the delisting risk situation within the specified time, it may face the risk of suspension or even termination of listing.

The continuous existence of delisting risk will have a negative impact on the company’s financing ability and brand image. In the credit market, the company’s credit rating may be affected, and financing costs may rise. In the capital market, stock price fluctuations may affect the company’s market value and equity incentive effect. In the real estate market, the repair of brand image takes time and practical actions. Therefore, eliminating delisting risk as soon as possible is an important prerequisite for the company to achieve continuous operation.

Based on the aforementioned analysis, we comprehensively evaluate Jinke Co.'s going concern ability after restructuring from the following five dimensions:

Evaluation Dimension	Current Status Description	Risk Rating
Financial Health	Negative net assets, continuous losses, tight liquidity	High Risk
Debt Structure	Restructuring completed, debt pressure relieved	Medium Risk
Management Capability	New team in place, rich experience	Neutral
Strategic Transformation	Correct direction, but needs time to verify	Medium Risk
Industry Environment	Real estate industry continues to adjust	High Risk

Comprehensive evaluation shows that there is great uncertainty about Jinke Co.'s going concern ability after restructuring, and it is difficult to achieve self-hematopoiesis in the short term. The company’s long-term development prospects depend on the implementation effect of the new strategy, the improvement of the industry environment and the actual operation ability of the management team.

For investors, the investment value of Jinke Co. needs to be evaluated carefully. Positive factors include: substantial relief of debt pressure after completing restructuring, strong lineup of new management team, correct strategic transformation direction, and successive landing of strategic cooperation with leading institutions. Negative factors include: doubts about going concern ability, continuous delisting risk, slow recovery of main business, and continuous downturn of the industry environment.

, the company faces delisting risk and technical rebound opportunities, and investors need to pay close attention to annual report data and regulatory dynamics. , the effect of the company’s strategic transformation and the contribution of new businesses will be key observation indicators. , the overall recovery of the industry and the reshaping of the company’s core competitiveness will determine the company’s investment value.

It should be specially emphasized that the adjustment cycle of the real estate industry may be long, and Jinke Co.'s “rebirth” road is still long. Completing restructuring is only the first step of the long march, and then there will be various tests to promote the enterprise to get on the right track and achieve sustainable development [3]. Investors should fully recognize the relevant risks and make decisions prudently when making investment decisions.

[1] Sina Finance - “Behind 1.2 Trillion Debt Resolution: The Road for Real Estate Enterprises from ‘Debt Clearance’ to ‘Sustainable Operation’” (https://finance.sina.com.cn/stock/relnews/hk/2025-12-29/doc-inhemiuu8069606.shtml)

[2] Sohu Finance - “Jinke Co., Ltd. Has Not Taken Off the ‘Tight Curse’” (https://m.sohu.com/a/970725904_116132)

[3] Sina Finance - “*ST Jinke Completes 100 Billion Debt Restructuring, New Team Faces Delisting Risk Test” (https://finance.sina.com.cn/roll/2025-12-30/doc-inhepszw4293161.shtml)

[4] Jinling AI Financial Database - Jinke Co. Financial Analysis Data (API Source)