"Checkout Wave" Adds Another Member! Jingzhu Development "Clears Out" Real Estate, State-Owned Shareholder Takes Over

This real estate company has reported losses for three consecutive years and is now “withdrawing” to remove the “burden.”

On March 16, after the market opened, Jingtou Development (600683.SH) hit the daily limit, with a limit-up price of 9.64 yuan, a 10.05% increase. As of the time of writing, the company’s total market value is 7.141 billion yuan, with a total transaction volume of 226 million yuan.

The stock price movement was triggered by an announcement regarding a “withdrawal.” The day before, Jingtou Development announced plans to transfer its real estate development-related assets and liabilities to Beijing Infrastructure Investment Co., Ltd. (referred to as “Jingtou Company”).

Public information shows that Jingtou Company is a state-owned enterprise established by the Beijing State-owned Assets Supervision and Administration Commission, and it is the controlling shareholder of Jingtou Development with a 40% stake. In other words, Jingtou Development intends to transfer its real estate business to its major shareholder.

It is reported that this major asset sale and related-party transaction will be paid in cash, will not involve issuing shares, will not affect the company’s equity structure, and will not result in a change of control. This transaction is expected to constitute a major asset restructuring and related-party transaction, but it is still in the planning stage and the scheme requires further validation.

Notably, before this announcement was released, Jingtou Development’s stock price had already shown unusual movement.

According to a notice issued by the company on March 15, the stock prices on March 11, 12, and 13 deviated from the average by more than 20% over three consecutive trading days, which qualifies as abnormal trading fluctuation under the Shanghai Stock Exchange trading rules.

After self-inspection and written verification with the controlling shareholder, Jingtou Development confirmed that during the period of abnormal stock price movement, the controlling shareholder did not buy or sell the company’s stock, nor were there any other major undisclosed matters or risks.

In Beijing’s real estate market, Jingtou Development is a familiar name among homebuyers.

As the only platform for market-oriented secondary real estate development under Jingtou Company, Jingtou Development specializes in integrated development of rail transit vehicle bases, transforming former government-invested subway parking lots or maintenance yards into buildable land resources. Its official website claims it is a pioneer in China’s rail property.

In terms of business scope, in recent years, Jingtou Development has expanded into residential, high-end complexes, commercial properties, villas, hotels, and regional development, investing in and developing nearly 20 projects. Typical projects include Beijing Xihua Mansion, Park Yuefu, Kunyu Mansion, Lanshan, Beixi District, and Sen and Tiancheng.

However, starting in 2023, Jingtou Development began to face financial losses. In that year, the company’s net profit attributable to the parent was -659 million yuan, with operating revenue of 10.641 billion yuan; in 2024, net profit attributable to the parent was -1.055 billion yuan, and revenue significantly decreased to 1.417 billion yuan.

By 2025, according to the company’s earnings forecast, net profit attributable to the parent is expected to be a loss between 1.025 billion and 1.23 billion yuan, an increase from the previous year; at the same time, net profit after deducting non-recurring gains and losses is projected to be a loss between 1.067 billion and 1.272 billion yuan.

The main reasons for the expected losses include increased interest expenses from project costs and preliminary asset impairment tests under accounting standards, with some project assets expected to be impaired.

As of mid-2025, Jingtou Development’s total assets amount to 59.834 billion yuan. Of this, inventory accounts for 43.491 billion yuan, or 72.69% of total assets, mainly including rail property projects in Beijing. Total liabilities are 54.176 billion yuan, an increase of 1.26 billion yuan from the beginning of the period.

As a Beijing state-owned real estate enterprise, Jingtou Development relies heavily on its major shareholder. As of June 30, 2025, the company had borrowed 32.698 billion yuan from Jingtou Company, accounting for 60.36% of total liabilities, with an asset-liability ratio of 90.54%. Jingtou Development states that it has the capacity to repay all due amounts.

Looking at the current situation, this real estate company, which has suffered losses for three years in a row, plans to “withdraw” directly to eliminate the “burden.”

“After this matter is completed, the company will no longer engage in real estate development,” Jingtou Development said. The company also stated that if the sale of its real estate business proceeds smoothly, its operating income and total assets will decrease, which is expected to improve the company’s asset-liability ratio and optimize its asset structure.

Affected by the real estate industry, many companies have exited the sector in recent years. According to the China Index Academy, since 2020, at least 12 companies have exited real estate development, either spinning off their development business within listed companies or completely shifting to new industries, retaining some light-asset businesses.

Liu Shui, Director of Enterprise Research at China Index Academy, believes that companies announcing the divestment or exit from real estate development are partly due to market adjustments, as losses in real estate directly drag down performance; partly to reduce debt and optimize financial structure, lowering credit risk; and partly because the current capital market values the real estate sector relatively low. After divesting real estate, listed companies may be able to reshape valuation logic.