Short-term debt warning lights up red! Jingvest Development waves goodbye to real estate with "limb amputation self-rescue"

On March 16, Jingtou Development (600683) experienced a strong intraday limit-up, with the limit price at 9.64 yuan per share. By the close, its total market value was 7.1 billion yuan.

The market movement was driven by the company’s announcement of an asset sale the previous day. On March 15, Jingtou Development announced plans to transfer its real estate development-related assets and liabilities to Beijing Infrastructure Investment Co., Ltd. (hereinafter referred to as “Jingtou Company”).

The 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 the company’s controlling shareholder.

Currently, the matter is still in planning, and the transaction price has not yet been determined.

Jingtou Company Takes Over, State-Owned Asset Internal Reorganization

This asset sale is essentially an internal transfer and asset integration within the state-owned enterprise system.

As the recipient of the assets, Jingtou Company not only has close equity ties with Jingtou Development but also possesses sufficient strength to take on real estate development assets and resolve related debts.

Public information shows that Jingtou Company is a wholly state-owned enterprise established by the Beijing State-owned Assets Supervision and Administration Commission (SASAC), and is also the controlling shareholder of Jingtou Development. As of September 30, 2025, Jingtou Company held a 40% stake in Jingtou Development.

As an important infrastructure investment and operation platform in Beijing, Jingtou Company has strong capital and asset scale.

Financial data indicates that as of September 30, 2025, Jingtou Company’s total assets were 955.345 billion yuan, with net assets of 328.761 billion yuan; from January to September 2025, operating revenue was 8.884 billion yuan, and net profit was 2.063 billion yuan.

With the controlling shareholder taking over, Jingtou Development’s business structure will undergo a fundamental change. After the transaction, the company will no longer engage in real estate development.

“Should the transaction proceed smoothly, the company’s operating income and total assets are expected to decrease, which may improve the company’s debt-to-asset ratio and optimize its asset structure,” Jingtou Development admitted.

Short-term Debt Warning, Urgent Need for Survival

As a listed company in the A-share real estate sector, Jingtou Development has long focused on real estate development. Its business structure shows that real estate sales revenue accounts for over 90% of total operating income.

Since 2011, the company has invested in and developed multiple TOD (Transit-Oriented Development) projects, including Beijing Xihua Fu, Park Yue Fu, Kun Yu Fu, Lanshan, Beixi District, Sen and Tiancheng, and Wuxi Yuyue Tiancheng, totaling over 5 million square meters of development.

However, as the real estate industry entered a deep adjustment cycle, the company’s traditional development model faced severe challenges, with sales performance plummeting. In 2025, Jingtou Development achieved contracted sales of 2.998 billion yuan, down 44.48% year-on-year; contracted sales area was 76,000 square meters, down 66.33%, with market absorption under continued pressure.

Moreover, Jingtou Development’s land reserves have become significantly depleted, with no new land acquisitions in the open market in recent years.

As of mid-2025, only the Maoqiu project in Mentougou, the A002-3# land in Chaoyang Beixi District, and other remaining parcels had not yet started construction. Future development resources are relatively limited. However, industry insiders see this as a proactive contraction in response to industry downturns, paving the way for strategic transformation.

Jingtou Development has made a firm decision to fully divest from real estate development, not only due to ongoing sales weakness but also because the company’s operations and financial condition have continued to deteriorate, making traditional development unsustainable.

Financial reports show that in 2023–2024, the company suffered consecutive large losses, with net profits attributable to shareholders of -6.59 billion yuan and -10.55 billion yuan, respectively.

Entering 2025, operating pressures have not eased. According to the latest earnings forecast, net loss attributable to shareholders is expected to be between 1.025 billion and 1.23 billion yuan, with losses continuing.

Debt-wise, the company’s financial leverage remains high. As of June 2025, total liabilities reached 54.176 billion yuan, an increase of 1.26 billion yuan from the beginning of the year; the asset-liability ratio was 90.54%, up 2.74 percentage points, with ongoing debt risks.

Meanwhile, Jingtou Development’s dependence on major shareholder funding is extremely high. As of June 30, 2025, the company owed Jingtou Company 32.698 billion yuan in principal and interest, accounting for 60.36% of total liabilities.

More urgently, as of the end of Q3 2025, the company’s short-term debt repayment capacity has turned red. The scale of non-current liabilities due within one year has increased to 7.1997 billion yuan, while cash and cash equivalents were only 2.744 billion yuan, far below the short-term rigid debt obligations, with a significant funding gap and ongoing liquidity pressure.

Against this backdrop, transferring real estate assets and liabilities to the controlling shareholder is a critical “amputation to stop bleeding” move. It can also cut off the source of ongoing losses, helping the company quickly reduce leverage, improve debt repayment indicators, and stabilize operations.

The future direction of the company’s strategic transformation remains unclear. However, leveraging the resource advantages of its controlling shareholder and its accumulated TOD projects, the company still has some development potential and imagination in the transit-support sector. Whether it can truly shed its dependence on real estate and achieve a rebirth through transformation remains to be seen.

Text / Huang Ning