ST Jinggu: Original controlling subsidiary Huiyin Timber's former actual controller suspected of contract fraud, criminal case filed by public security authorities

On March 24, ST Jinggu issued a notice that the company recently received a “Notice of Case Filing” from the Tang County Public Security Bureau in Hebei Province. The company’s former controlling shareholder, Tang County Huiyin Wood Industry Co., Ltd. (hereinafter referred to as “Huiyin Wood”), is suspected of contract fraud and has been filed by the public security authorities.

Huiyin Wood was acquired by ST Jinggu in 2023. It mainly engages in the production and sale of artificial boards. That year, ST Jinggu purchased a 51% stake in Huiyin Wood for 270 million yuan. This acquisition was seen as an important move for the listed company to enhance industry competitiveness and improve sustainable profitability.

Since April 2025, lenders involved in private loans to Cui Huijun and Wang Lanchun, as well as Huiyin Wood, have filed lawsuits against the two individuals and Huiyin Wood as joint defendants. They also applied for pre-litigation property preservation measures, resulting in bank accounts and major assets of Huiyin Wood being seized and frozen, ultimately causing Huiyin Wood to cease operations.

The announcement states that during the acquisition of Huiyin Wood, Cui Huijun and Wang Lanchun, as information disclosure obligors, failed to truthfully disclose their private lending activities involving Huiyin Wood to the company and intermediaries. They made false promises and guarantees regarding related matters, with deliberate concealment. After the private lending lawsuits erupted in April 2025, and until Cui Huijun and Wang Lanchun went missing, the company and intermediaries repeatedly verified the situation with them, but both continued to hide the existence of substantial private loans.

The behaviors of Cui Huijun and Wang Lanchun are suspected of fraudulently selling flawed assets to the company. The company has filed a case with the Tang County Public Security Bureau in Hebei Province regarding their suspected contract fraud.

In December 2025, ST Jinggu transferred its 51% stake in Huiyin Wood to its controlling shareholder, Zhou Dafu Investment Co., Ltd., for 133 million yuan. After this transaction, Huiyin Wood was divested and no longer included in the company’s consolidated financial statements.

Another announcement from ST Jinggu disclosed the progress of the lawsuit filed by the original lenders. In September 2025, Huiyin Wood received legal documents served by the Zhengding County People’s Court in Hebei Province. The plaintiff, Fan Huazhi, sued Huiyin Wood, Wang Lanchun, Cui Huijun, and Jinggu Forest for a case involving principal of 60 million yuan and corresponding interest. Recently, the company received the court’s “Civil Ruling.” The court, after review, believed that the private loans in question “do not constitute economic disputes but have suspected economic crimes,” and therefore, the case was dismissed, with relevant materials transferred to public security or procuratorial authorities.

(Source: The Paper)