The annual reporting season has concluded, revealing the debt profiles of all 147 listed companies based in Hunan province. Over the past year, the debt landscape of these companies has shown significant fluctuations, reflecting underlying challenges in operational efficiency and risk management.
According to statistics, by the end of 2025, the total assets of these 147 companies reached 3.16 trillion yuan, a 6% increase from the previous year. Total liabilities amounted to 2.24 trillion yuan, up 7%, resulting in an asset-liability ratio of 70.84%, an increase of 0.71 percentage points. Overall, debt levels among Hunan-listed firms have risen slightly, with growing divergence between sectors and significant variations among individual companies. For instance, ST Zhangjiajie successfully averted crisis by introducing strategic investors, while ST Jin Hong, which relocated to Hunan last year, has now entered a restructuring process.
Excluding Changsha Bank, eight Hunan companies had asset-liability ratios exceeding 90% by the end of 2025, indicating they are on the brink of or have already reached technical insolvency. Among them, Weiling Co., Ltd. has seen its quick ratio and current ratio decline year after year, signaling high short-term repayment risks. The company has been labeled "*ST" due to negative net assets attributable to parent shareholders and internal control issues identified in its financial reports.
Across the broader group of Hunan-listed companies, the question remains: which are expanding healthily, and which are dancing on the edge of a cliff?
Hunan Yuneng saw its debt surge by 40%, entering the top ten list by total liabilities. By the end of 2025, the combined liabilities of the 147 companies reached 2.24 trillion yuan. Among them, 21 companies had liabilities exceeding 10 billion yuan, with one company's liabilities surpassing one trillion yuan. Compared to the previous year, the number of companies in the "100-billion-yuan debt club" decreased by two, suggesting a slimming down, though the threshold for the top ten increased by 6.1 billion yuan.
The top eight positions in the debt ranking remained unchanged, though each company experienced fluctuations in debt scale. The three financial giants—Changsha Bank, Founder Securities, and Minmetals Capital—continued to hold the top three spots. Changsha Bank remained at the top with liabilities of 1.19 trillion yuan, an 11.20% increase from the previous year. However, for banks, deposits constitute liabilities, and a trillion-yuan scale essentially reflects deposit-taking capacity rather than financial distress. Data shows that in 2025, Changsha Bank absorbed 802.2 billion yuan in deposits, accounting for 67.65% of its total liabilities, while its non-performing loan ratio remained low at 1.15%, indicating a stable asset structure.
Steel leader Valin Steel maintained its fourth position despite a slight reduction in debt. By the end of 2025, its total liabilities stood at 79.411 billion yuan, down 4.28% year-on-year, with an asset-liability ratio of 53.46%, a decrease of 2.56 percentage points. Zoomlion, Modern Investment, Lens Technology, and Huayin Electric Power ranked fifth to eighth, respectively.
Significant changes occurred in the ninth and tenth positions. CRRC Times Electric, a leader in rail transit equipment, saw its total liabilities increase by 30.54% to 26.159 billion yuan, moving up to ninth place. Kibing Group, which ranked ninth the previous year, fell to eleventh as its total liabilities decreased by 9.46%. The tenth position was taken by newcomer Hunan Yuneng, with total liabilities of 26.149 billion yuan, a 39.97% increase, and an asset-liability ratio of 66.89%, up 5.32 percentage points. In 2025, Hunan Yuneng continued to expand its production capacity domestically and internationally, improving upstream industrial support. However, large expenditures, increased working capital usage, and delays in its private placement contributed directly to the rise in overall debt.
*ST Jiawo successfully reduced its debt by divesting non-performing assets. Among the bottom ten by total liabilities, ranking changes were significant, with five new entrants. Huitong New Materials had the lowest total liabilities at 420 million yuan, a 35.86% increase, yet it remained the least indebted Hunan company. Close behind was newcomer *ST Jiawo, with total liabilities of 570 million yuan, a sharp decrease of 99.41%. This was primarily due to the company's decision in June 2025 to transfer 100% of its equity in Jiawo Zhencheng to related party Jiawo Pinxian, effectively divesting its salmon business assets. After shedding the loss-making assets, *ST Jiawo's interest-bearing debt was nearly eliminated, leading to a sharp reduction in liabilities. By the end of 2025, its net assets turned positive to 275 million yuan, and its asset-liability ratio plummeted from 104.92% to 10.87%, allowing it to escape its debt predicament.
The other four new entrants—Nanxin Pharmaceutical, Zuxing New Materials, ST Jiajia, and Guangxin Technology—had total liabilities of 970 million yuan, 1.91 billion yuan, 2.19 billion yuan, and 2.20 billion yuan, respectively. In terms of debt growth, 84 companies saw positive growth in total liabilities, one fewer than the previous year, while 63 companies experienced negative growth, three more than before. Three companies saw growth rates exceeding 100%, with Wuxin Tunnel Equipment leading at 302.47%, followed by Guangxin Technology and *ST Gaosi with increases of 172.67% and 106.28%, respectively.
Sector-wise, the debt structure of Hunan-listed companies is still dominated by finance and heavy industry. Capital-intensive manufacturing requires substantial capital investment, while highly leveraged financial services are inherently debt-heavy, aligning with industry characteristics. However, in recent years, the new energy battery sector has experienced rapid growth. Companies along the supply chain are accelerating capacity expansion to capture market share, naturally leading to rising debt levels, as exemplified by newcomer Hunan Yuneng entering the top ten.
Four Hunan companies are technically insolvent, facing precarious situations. Simply examining total liabilities does not fully assess a company's debt pressure; the asset-liability ratio is a more critical indicator of financial health. Typically, a ratio between 40% and 60% is considered a relatively safe range, allowing companies to leverage appropriately for growth without excessive pressure. A persistently rising ratio indicates increasing debt pressure. Exceeding 90% places a company on the brink of insolvency, while breaking the 100% threshold means it is technically insolvent and in a precarious position.
Excluding Changsha Bank, 107 of the 146 Hunan companies had asset-liability ratios below 60%, two more than the previous year, while 39 had ratios above 60%, unchanged from before. Among these, 14 had ratios exceeding 80%, one more than the previous year. Companies labeled ST and those in cyclically weak industries are particularly affected within the high-debt camp, with ST stocks accounting for seven of the top ten companies by asset-liability ratio. Within the top ten, eight companies had ratios exceeding 90%. Among them, *ST Xiangyou, *ST Kaiyuan, ST Huayang, and ST Jingfeng had ratios over 100%, indicating technical insolvency. These companies face delisting risks or operational difficulties, placing them in a perilous position.
Compared to the previous year, the top ten ranking saw significant changes. The former leader, *ST Jiawo, executed a survival strategy in 2025 by clearing out loss-making assets and exited the list. The new top position was taken by Xiangyou Technology (previously seventh). In 2022, Xiangyou Technology implemented a "technology + market" expansion strategy, accelerating its penetration into non-postal sectors. Starting in 2023, the company collaborated with Tianjin Membrane Workshop on the "Zhihui Kangxin Multi-functional Terminal" project. Due to issues like overdue payments, the company recorded impairment losses exceeding 400 million yuan in 2025, leading to substantial losses. Its net assets turned negative, triggering a delisting risk warning, and its stock abbreviation was changed to "*ST Xiangyou." By the end of 2025, its asset-liability ratio soared to 201.05%.
*ST Kaiyuan rose from third to second place, with its asset-liability ratio increasing by 32.03 percentage points to 127.70%, indicating worsening conditions. Huayang Lianzhong moved up three spots to third, with a ratio of 110.59%, up 19.8 percentage points. In 2025, Huayang Lianzhong suffered significant net asset shrinkage due to continuous losses in its main business and large asset impairments. Its rising asset-liability ratio, coupled with disclosure violations related to fund misappropriation by the former controlling shareholder and financial fraud, led to an ST risk warning. ST Jingfeng fell from second to fourth, and ST Baili dropped from fourth to fifth. Although their rankings declined, their asset-liability ratios continued to rise, reaching 103.45% and 96.97%, respectively. Fortunately, ST Jingfeng has completed its restructuring plan, a critical self-rescue step, while ST Baili announced plans for out-of-court reorganization, potentially reducing its debt level this year.
Ranking sixth is ST Jin Hong, which relocated to Hunan in 2025, with an asset-liability ratio of 93.35%. Its entry into the top ten was anticipated, given its recent move and existing debt situation. On February 10 this year, ST Jin Hong announced that creditor Suzhou Ganhong Xinhui had applied to the Hengyang Intermediate Court for company restructuring. By April 22, the company had signed a restructuring investment agreement with an industrial investor. Whether ST Jin Hong can resolve its debt crisis depends on subsequent restructuring progress.
Among the remaining companies, Huayin Electric Power fell two spots from fifth to seventh, while Linkpath Technology rose from tenth to ninth. Weiling Co., Ltd. and Huamin Co., Ltd. are two new entrants for 2025. Weiling's asset-liability ratio was 90.70%, up 34.95 percentage points, ranking eighth, while Huamin's ratio was 89.08%, up 3.99 percentage points, ranking tenth.
There are also success stories. ST Zhangjiajie, previously ranked ninth, successfully reduced its debt and improved its net assets by introducing strategic investors like Hunan TV & Broadcast Intermediary Co., Ltd. and Mango Tourism, effectively stabilizing its position. Meanwhile, ST Hezong, previously eighth, has relocated back to Beijing, exiting the Hunan company cohort entirely.
Weiling Co., Ltd. shows a consecutive decline in its quick ratio, indicating high risk. Beyond the asset-liability ratio, the quick ratio and current ratio are key indicators for assessing short-term debt repayment capability, reflecting a company's ability to cover current liabilities with easily liquidated assets.
Excluding Changsha Bank, 57 of the remaining 146 companies had quick ratios below 1, unchanged from 2024, while 32 had current ratios below 1, three more than in 2024. You-A Department Store remained at the top with quick and current ratios of 0.09 and 0.49, respectively. Although liquidity is tight, the company's overall debt pressure is manageable. By the end of 2025, its total liabilities were 7.55 billion yuan, down 2.59%, with an asset-liability ratio of 53.81% within a reasonable range. The company is steadily advancing its dual-core business strategy of "retail + semiconductors."
ST Jin Hong ranked second with quick and current ratios of 0.12 and 0.13. Huatian Hotel and Keming Food maintained their third and fifth positions, respectively, while ST Jingfeng and Jinjian Cereals Industry fell two and three spots to sixth and tenth. The list also saw new entrants. Weiling Co., Ltd., Xiangyou Technology, Xinwufeng, and Huayin Electric Power are new to the "top ten liquidity constraint ranking" for 2025. Previous entrants Daodaoquan and Mengjie Co., Ltd. improved their current and quick ratios through optimized asset structures, alleviating short-term repayment pressures.
Among the new entrants, Weiling Co., Ltd. ranked fourth with a quick ratio of 0.19 and a current ratio of 0.24. From 2021 to 2024, its quick ratios were 2.43, 0.96, 0.68, and 0.57, respectively, while its current ratios were 3.24, 1.36, 0.87, and 0.64, showing a clear declining trend and increasing short-term repayment risk year after year. Since 2021, Weiling engaged in large-scale acquisitions of lithium mines and production line construction, accumulating substantial fixed assets and debt. In 2025, the lithium carbonate industry cycle turned downward, leading to a significant contraction in its main business revenue. Combined with reduced output due to equipment maintenance in its smelting lines, its lithium resource business suffered heavily, coinciding with concentrated debt maturities. By the end of 2025, its audited net assets attributable to parent shareholders were negative 32.05 million yuan, triggering a delisting risk warning under listing rules for negative net assets. Additionally, auditors identified major deficiencies in internal financial reporting controls, including chaotic fund management, uncontrolled related-party transactions, and irregular asset impairment provisions, resulting in an adverse opinion. Since resuming trading on May 6, the company's stock has been labeled "*ST Weiling."
The other new entrants, Xiangyou Technology, Xinwufeng, and Huayin Electric Power, ranked seventh, eighth, and ninth, respectively. Xiangyou Technology's quick ratio was 0.34, down 0.54 year-on-year, and its current ratio was 0.39, down 0.57.
Overall, the short-term debt repayment landscape among Hunan companies is relatively clear. Leading firms rely on economies of scale and diverse financing channels for stability. Mid-tier companies manage finances prudently, using leverage to fuel future growth. Those in deep trouble are seeking revitalization through restructuring and reorganization. In 2025, Zhangjiajie and *ST Jiawo successfully resolved their debt crises, while ST Jingfeng and Mengjie Co., Ltd. employed various strategies to alleviate debt pressure. In 2026, key questions remain: Will the restructurings of ST Jin Hong, *ST Kaiyuan, and ST Baili proceed smoothly? Will state-owned shareholders assist Huayang Lianzhong and Xiangyou Technology? The debt resolution plans of many Hunan companies hang in the balance, with the drama just beginning.