While most A-share real estate companies have long traded below net asset value, Jinke's price-to-book ratio of 3.72 times has brought a glimmer of hope to the stagnant market. On April 27, *ST Jinke submitted an application to the Shenzhen Stock Exchange to remove its delisting risk warning. The 2025 financial report released on the same day showed a net profit attributable to shareholders of 29.325 billion yuan, while the net assets attributable to shareholders surged from -28.683 billion yuan to 4.156 billion yuan. How did a real estate developer, which reported a massive loss of 31.97 billion yuan and was insolvent in 2024, achieve such a financial turnaround within a year?
Where did the 29.3 billion yuan profit come from? A review of Jinke's 2025 financial report reveals that the 29.3 billion yuan profit did not come from property sales. In fact, the company's operating revenue for 2025 was only 6.884 billion yuan, a decrease of 75% year-on-year. The key factor altering the profit statement was the debt restructuring gains. According to the financial report notes, after completing the execution of the restructuring plan in December 2025, Jinke and its core subsidiary Chongqing Jinke collectively recognized net debt restructuring gains of 72.407 billion yuan. This included 47.001 billion yuan at the parent company level, 10.864 billion yuan at the Chongqing Jinke level, and an adjustment of 14.542 billion yuan at the consolidated statement level due to factors such as the deconsolidation of subsidiaries.
How was this 72.4 billion yuan "paper gain" calculated? Simply put, when a company settles debts at a value lower than their book value, the difference is recorded as debt restructuring gains. Jinke's restructuring plan designed a combination settlement method involving "cash + shares + trust beneficiary rights." For example, for ordinary creditors at the company level, the portion of claims exceeding 50,000 yuan entitles creditors to approximately 2.53 shares and 100 trust beneficiary rights per 100 yuan of claim. The financial report disclosed that the company settled debts using the fair value of settlement resources. The shares used to settle ordinary claims were valued at 1.969 billion yuan, and the trust beneficiary rights at 1.011 billion yuan. Since the book value of the corresponding debts was significantly higher, the difference resulted in restructuring gains.
Alongside the 72.4 billion yuan in gains, the company also recorded 23.134 billion yuan in asset impairment losses, primarily from inventory write-downs, 5.624 billion yuan in credit impairment losses, and 2.432 billion yuan in fair value change losses. These three items reduced profits by nearly 31.2 billion yuan. After offsetting, the final net profit attributable to shareholders stood at 29.3 billion yuan.
How did net assets turn positive? If the profit reversal relied on "accounting adjustments," the leap in net assets from -28.683 billion yuan to 4.156 billion yuan was achieved through "deconsolidation tactics." Under the restructuring plan, Jinke transferred all non-retained assets into a service trust to settle claims with creditors. Among the company's original 38 first-tier subsidiaries, 20 were classified as non-retained; among Chongqing Jinke's original 74 first-tier subsidiaries, 49 fell into the non-retained category. These subsidiaries, along with their underlying subsidiaries, totaling 713 entities, were no longer included in the consolidated financial statements.
This move had a dual financial impact. On one hand, a significant amount of liabilities was deconsolidated. The financial report showed that Jinke's total assets plummeted by 91.60% from 177.183 billion yuan at the end of 2024 to 14.891 billion yuan, while total liabilities dropped from 194.47 billion yuan to 10.12 billion yuan. The debt-to-asset ratio decreased from 109.76% to 67.97%. On the other hand, loss-making assets that had long dragged down profits—such as stalled projects, depreciated inventory, and unrecoverable receivables—were removed from the listed company's statements. The company re-measured receivables from former subsidiaries transferred to the trust at fair value, resulting in a book value of only about 3.284 billion yuan after bad debt provisions. This accounting treatment directly reduced the debt restructuring gains at the consolidated level but also left the new Jinke with a "cleaner" balance sheet.
Three Restructuring Strategies: Debt Resolution, Investment Injection, and Asset Divestiture The successful execution of Jinke's judicial restructuring relied on three interconnected strategies. The first was the debt resolution plan. The restructuring covered over 8,400 creditors, resolving approximately 147 billion yuan in debt. The financial report detailed the settlement methods for various types of claims: employee claims and tax claims were settled in cash; secured claims were settled through disposal of collateral or asset-for-debt swaps; ordinary claims were settled via a combination of "cash + shares + trust beneficiary rights." A notable design was the establishment of a service trust as an "asset pool," into which non-retained assets were placed. Creditors receiving trust units would later recover value through the revitalization and monetization of trust assets. This approach alleviated immediate cash pressure while preserving long-term asset value.
The second strategy was the introduction of restructuring investors. The company increased its share capital through capital reserves, allocating 3 billion shares to attract investors, raising a total of 2.628 billion yuan. Shanghai Pinqi Consortium became the new controlling shareholder, with institutions like Great Wall Asset Management and Sichuan Development Fund participating as co-investors. The financial report disclosed that after the restructuring, the company's controlling shareholder changed from Jinke Holding to Jingyu Xingzhu and Jingyu Xingcan, and the company transitioned to having no actual controller. The new shareholders not only injected capital but also brought expertise in special asset disposal and management.
The third strategy was asset divestiture. As mentioned, 713 subsidiaries were transferred to the service trust and deconsolidated. This meant that Jinke isolated projects that were difficult to revitalize in the short term and continued to consume cash flow from the listed company's system. The retained assets primarily consisted of projects with certain operational capabilities and new business platforms.
A Paper Victory, A New Beginning for Operations From a financial perspective alone, Jinke has met all the conditions for removing the delisting risk warning. Its net assets are positive, the audit report is unqualified, and there are no other risk警示 circumstances. The removal of the delisting risk label is only a matter of time. However, this does not mean Jinke has truly "emerged from the crisis." A deeper analysis of its financial data highlights several indicators that still warrant close attention: The 2025 net profit after deducting non-recurring gains and losses was -35.576 billion yuan, indicating that core operations remain deeply unprofitable. Net cash flow from operating activities was -1.721 billion yuan, showing the company lacks self-sustaining capabilities. Annual sales amounted to only about 8 billion yuan, a fraction of its peak performance.
In the first quarter of 2026, the situation showed no fundamental improvement. Although the net loss attributable to shareholders narrowed significantly by 97.39% year-on-year to -42.2398 million yuan, this improvement primarily stemmed from accounting adjustments, such as deconsolidating subsidiaries transferred to the service trust. Excluding this factor, operational performance saw no substantive recovery.
Jinke's financial advisors emphasized in the report that the company's future focus will be on urban renewal, asset management, and operational services, facing uncertainties including policy risks, market risks, and strategic transformation challenges. This is an objective assessment: Jinke has overcome the "survival hurdle," but the "development hurdle" has just begun.
As of intraday trading on April 28, *ST Jinke closed at 1.44 yuan, down 0.04 yuan from the previous close of 1.48 yuan, a decline of 2.70%. The total market capitalization stood at 15.31 billion yuan, with a circulating market cap of approximately 10.97 billion yuan. While most A-share real estate companies trade below net asset value (with price-to-book ratios below 1 times), Jinke's 3.72 times ratio suggests that market pricing incorporates significant "restructuring premiums" and "transformation expectations." In other words, investors are not betting on its current net assets but on the potential of a "clean balance sheet" post-restructuring.