Jing Tou Development Plans to Divest Real Estate Business, Expected to Constitute Major Asset Restructuring

Securities Times Reporter Zhang Yifan

On the evening of March 15, Jingtou Development (600683) announced that it is planning to transfer assets and liabilities related to its main real estate development business. The transaction is expected to constitute a major asset restructuring, and the company’s stock will not be suspended from trading. Since the beginning of this year, Jingtou Development’s stock price has doubled in value.

The announcement shows that the transferee of the relevant assets is Beijing Infrastructure Investment Co., Ltd., the controlling shareholder of Jingtou Development. The transaction is planned to be paid in cash. According to preliminary research and estimates by Jingtou Development, this matter is expected to constitute a major asset restructuring and a related-party transaction.

“This matter is still in the planning stage, and the specific scope, price, and other elements of the transaction have not been finalized. No agreement has been signed between the parties, and the transaction plan still requires further discussion and negotiation,” Jingtou Development stated. The company also pointed out that if the matter is successfully completed, its operating income and total assets will decrease, which is expected to improve the company’s debt-to-asset ratio and optimize its asset structure.

Currently, real estate is Jingtou Development’s main business. Focusing on TOD (Transit-Oriented Development) rail property projects, Jingtou Development mainly develops and sells projects independently, with property management and leasing as supplementary operations. Since launching its first TOD project in 2011, Jingtou Development has invested in and developed several TOD rail property projects, including Beijing Xihua Mansion and Park Yuefu, with a total development scale exceeding 5 million square meters.

Recent financial forecasts show that Jingtou Development will experience losses for three consecutive years. The company expects a net profit attributable to shareholders of -1.025 billion to -1.23 billion yuan in 2025. The company attributes its projected losses to increased interest expenses related to project costs and asset impairments for some projects under accounting standards.

In the past two years, Jingtou Development has shifted its focus in real estate to delivery and inventory clearance. Over this period, the company’s new real estate reserve projects have been zero, and the new construction area in 2025 is expected to decrease by 86.73% year-on-year to only 24,200 square meters. However, the completed area is expected to increase significantly by 143.74% year-on-year. In 2025, Jingtou Development’s contracted sales amount is projected at 2.998 billion yuan, down 44.48% year-on-year.

Regarding liabilities, as of June 30, 2025, Jingtou Development’s asset-liability ratio was 90.54%, an increase of 2.74 percentage points from the beginning of the period. However, the company emphasized that pre-sale funds continue to be collected, overall asset quality remains good, operational risks are controllable, and it has the capacity to repay maturing debts.

In the past two years, A-share listed real estate companies have launched waves of divesting their property businesses, with state-owned enterprises leading the trend. China Communications Construction Real Estate, JinTuo City Development, Gree Real Estate, and others have successively undertaken similar operations, divesting real estate development assets and liabilities to shift focus to property services, asset management, urban operations, or entering new sectors such as duty-free shops, new energy, and high-end manufacturing.

In previous cases, the capital market generally responded positively to such divestments by real estate companies. However, it is worth noting that since the beginning of this year, Jingtou Development’s stock price has doubled. On the evening of March 15, Jingtou Development also disclosed an announcement of abnormal stock trading fluctuations, confirming that aside from the aforementioned transaction, there are no other major undisclosed matters or risks.