On the evening of December 25, Shenzhen Jianyi Decoration Group Co., Ltd. (hereinafter referred to as "*ST Jianyi") announced that its controlling shareholder, Zhuhai Zhengfang Group Co., Ltd. (hereinafter referred to as "Zhengfang Group"), will waive 1.4 billion yuan of principal debt and 8.8967 million yuan of corresponding interest, and donate 400 million yuan in cash assets. Zhengfang Group is a state-owned enterprise under the jurisdiction of Xiangzhou District, Zhuhai City. These two support measures provide a critical turning point for the development of this company under delisting risk warning. As of December 25, *ST Jianyi had recorded four consecutive daily limit-up gains, with its price reaching the limit-up price of 10 yuan per share that day, resulting in a total market capitalization of 1.596 billion yuan.
Looking back, the difficulties faced by *ST Jianyi originated from industry cycle adjustments. Established in 1994, the company is a leading enterprise in architectural decoration. Following the deep adjustment of the real estate industry since 2021, it encountered common industry challenges such as difficulties in recovering accounts receivable and a sharp increase in asset impairment losses. For the 2024 fiscal year, the company's year-end net assets turned negative. Its auditor issued an unqualified audit report that included an emphasis-of-matter paragraph highlighting a material uncertainty related to going concern. Consequently, its stock was placed under delisting risk warning and other risk warnings on April 28, 2025.
"The debt waiver and cash donation from the controlling shareholder are crucial support for the company to resolve delisting risks and achieve sustainable development," a relevant person in charge of *ST Jianyi stated in an interview. The debt waiver will relieve the company's debt burden, and the 400 million yuan cash donation has been fully received, effectively enhancing the company's liquidity and providing sufficient funding guarantees for optimizing the asset-liability structure and focusing on core business. The announcement indicated that the release of mortgages on assets corresponding to the waived debt is expected to be completed by December 31, 2025, which will further improve the efficiency of the company's asset utilization.
In fact, this is not the first time the state-owned shareholder has supported *ST Jianyi. Since Zhengfang Group took control at the end of 2021, *ST Jianyi has received empowerment from the shareholder in multiple dimensions including funding, business, and management, gradually advancing debt restructuring and business transformation. The company proactively adjusted its business structure, reducing reliance on real estate developer clients, and continuously increased the revenue contribution from public building projects. Simultaneously, it expanded into new areas such as new energy and the "silver economy," transforming towards becoming a comprehensive urban construction service provider. As of the third quarter of 2025, the value of signed but uncompleted contracts reached 2.2 billion yuan, including projects in the Hong Kong market and related to new energy. Recently, the company won a bid for a fine decoration project related to the second phase of Southern Medical University Shenzhen Hospital, with a total value exceeding 68.66 million yuan, indicating a continuous optimization of client quality.
"Against the backdrop of the comprehensive registration-based system in the capital market, strategic support from high-quality shareholders provides an important path for listed companies in distress to break through their difficulties," Guo Tao, Deputy Director of the China E-Commerce Expert Service Center, commented. He noted that the combination of debt waiver and cash injection not only helps enterprises shed historical burdens but also provides financial support for their business transformation, aligning with the current capital market's orientation of supporting the real economy and optimizing resource allocation. Furthermore, this support model combining "blood transfusion" and "hematopoiesis" provides a replicable example for other distressed enterprises within the industry, contributing to promoting high-quality development in the architectural decoration sector during this adjustment period.