Complete exit from real estate! Beijing Capital Development plans to liquidate core business, controlling shareholder plans to take over with cash

Everyday Economic News Reporter: Peng Fei    Editor: Huang Bowen

After experiencing declining performance and massive losses, the veteran A-share real estate company Jingtou Development (SH600683, stock price 8.76 yuan, market value 6.489 billion yuan) has pressed the “exit button” on its core business.

On the evening of March 15, Jingtou Development announced that the company plans to transfer its real estate development-related assets and liabilities to its controlling shareholder, 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 control.

The Daily Economic News reporter noted that from a loss of over 1 billion yuan in 2024 to an estimated maximum loss of 1.23 billion yuan in 2025, the heavy burden of the real estate main business has become unbearable for Jingtou Development. Before this divestment announcement, the company’s stock price had experienced a cumulative deviation of over 20% in three consecutive trading days.

The strong “backstop” provided by state-owned shareholders may inject liquidity and resolve debt risks in the short term, but it also raises a serious question: after completely divesting the real estate business, which accounts for the majority of revenue, what will Jingtou Development rely on to support its performance in the future?

Planned Disposition of All Real Estate Development Assets and Liabilities

On the evening of March 15, 2026, Jingtou Development issued a preliminary notice regarding major asset sale and related-party transactions. The announcement states that the company intends to transfer its real estate development assets and liabilities to its controlling shareholder, Jingtou Company.

Based on initial research and estimates, this matter is expected to constitute a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies.”

The Daily Economic News reporter observed that prior to this, market participants seemed to have anticipated this move. Jingtou Development’s stock price closed more than 20% away from the previous day for three consecutive trading days on March 11, 12, and 13, indicating abnormal trading fluctuations.

The core reason driving Jingtou Development to fully exit is its continuously deteriorating operating performance. In recent years, affected by the broader market environment, Jingtou Development’s main business has been under severe pressure.

Financial data shows that in the first three quarters of 2025, Jingtou Development achieved an operating revenue of 555 million yuan, a sharp decrease of 50.74% year-on-year; net profit attributable to shareholders was -374 million yuan. Notably, in the third quarter of 2025 alone, due to a decline in the scale of real estate project deliveries, revenue dropped 74.78% year-on-year to approximately 141 million yuan.

Entering early 2026, the company’s 2025 annual performance forecast further confirmed the bleak outlook. Preliminary estimates suggest that net profit attributable to shareholders for 2025 will be between -1.23 billion and -1.025 billion yuan; excluding non-recurring gains and losses, the net profit is expected to be between -1.272 billion and -1.067 billion yuan.

Jingtou Development explained the reasons for losses: first, increased interest expenses from capitalization of real estate projects; second, the company conducted preliminary impairment tests on project assets according to accounting standards, and based on prudence, expects to recognize impairment on some assets.

The semi-annual report of 2025 shows that Jingtou Development is a listed company in the A-share real estate sector, mainly engaged in real estate development, operation, and leasing. The company primarily develops and sells properties independently, with self-owned properties for operation and leasing as supplementary, focusing on TOD (Transit-Oriented Development) rail transit property development.

Under the heavy pressure of interest and impairment costs, Jingtou Development explicitly stated in its March 15 announcement: “After this matter is completed, the company will no longer engage in real estate development business.”

Is the listed company facing “hollowing out”?

The “big tree” behind Jingtou Development—the controlling shareholder, Jingtou Company—is the key player in this situation.

As of September 30, 2025, Jingtou Company held 40% of Jingtou Development’s shares, making it the controlling shareholder. It is a state-owned enterprise established by the State-owned Assets Supervision and Administration Commission of Beijing Municipal Government.

In terms of assets, Jingtou Company is extremely strong. Its involvement provides solid financial backing for this transaction. The announcement indicates that the major asset sale will be paid in cash, will not involve issuing shares, will not affect the company’s equity structure, and will not change the controlling shareholder.

As of the end of the third quarter of 2025, Jingtou Development’s total assets amounted to 60.372 billion yuan. Successfully divesting its heavy real estate burden could provide a short-term breathing space. The company expects that if this transaction proceeds smoothly, it will improve the company’s debt-to-asset ratio and optimize its asset structure.

However, this “slimming down” also raises concerns about the company’s future operational sustainability. Jingtou Development’s main business is real estate development; once the core business is fully cleared, the company will inevitably face significant declines in revenue and total assets.

The Daily Economic News reporter noted that in 2024, Jingtou Development achieved operating revenue of 1.416 billion yuan, of which 1.337 billion yuan came from the real estate sector, and only 79 million yuan from services and others. After divesting real estate, where will the company’s future core profitability come from? Will it become a “shell company” with only cash reserves? This is a major challenge for management.

It is worth noting that this matter is still in the planning stage, with no final details on scope, price, or other elements, and no letter of intent has been signed with the counterparty. The company expects to disclose a preliminary plan or draft report within six months from the date of this announcement.

During this period, significant uncertainties remain. For investors, while the company’s stock price has surged sharply, it is prudent to view this capital restructuring with caution regarding the underlying risks of fundamental reshaping.

Daily Economic News