Breaking News! Major Stock Suspended for Investigation! Why Did the Price Surge?

A-shares major bullish stock urgently warns of risks.

On the evening of the 26th, ST Jinglan announced that the company’s stock price increased by 116.67% from January 23, 2026, to February 26, 2026, significantly diverging from the company’s performance. To protect investors’ interests, the company will conduct an investigation into trading fluctuations and has suspended trading starting February 27.

ST Jinglan also issued a risk warning stating that as of the end of Q3 2025, the company’s book funds amounted to 9.1263 million yuan. The company is still in a strategic transformation period, with several projects planned by subsidiaries requiring capital investment. If the relevant funds cannot be fully secured as planned, it may lead to project delays, slower-than-expected expansion of subsidiaries, and underperforming project implementation, which could impact the company’s performance growth and overall strategic transformation results. Overall, the company’s funding pressure has not been fundamentally alleviated. Investors are advised to pay full attention to related risks.

Major Bullish Stock Announcement: Trading Suspension for Investigation

On the evening of February 26, ST Jinglan announced that the company’s stock price during three consecutive trading days from February 24 to 26 deviated by more than 13.13%, indicating abnormal trading fluctuations. To safeguard investors’ interests, the company will investigate the trading volatility, suspend trading from February 27, and resume after the investigation concludes and relevant disclosures are made. The suspension is expected to last no more than three trading days.

ST Jinglan stated that its latest price-to-book ratio significantly exceeds the industry average, and there is a risk of rapid stock price decline in the future. The company reminds investors to be cautious of secondary market trading risks.

Additionally, ST Jinglan pointed out that it expects a significant decline in operating performance for 2025, with current stock price increases severely diverging from actual business results. According to the company’s “2025 Performance Forecast,” net profit after deducting non-recurring gains and losses is expected to be between -220 million and -150 million yuan, further widening losses compared to 2024. After self-examination and verification with the controlling shareholder and actual controller, as of the disclosure date of this announcement, the company has no undisclosed major matters.

As of the close on February 26, ST Jinglan hit the daily limit up, with a stock price of 3.64 yuan per share and a total market value of 10.399 billion yuan. Over the past 18 trading days, it has hit the limit up 14 times.

Data shows that ST Jinglan mainly engages in harmless disposal of industrial and urban solid waste, comprehensive recycling of secondary resources, soil remediation, integrated management and protection of cultivated land soil environment, and high-standard farmland construction. The company’s industrial and urban solid waste disposal and secondary resource recycling businesses are primarily handled by its controlling subsidiary Yunnan Yesheng and its wholly owned subsidiary Gexiu Xinghua.

Why Did the Stock Price Surge?

The trigger for ST Jinglan’s stock price surge was a notice issued on January 24. In that announcement, ST Jinglan stated that its 11th Board of Directors’ 24th extraordinary meeting approved changing the company name from “Jinglan Technology Co., Ltd.” to “Yin Ta New Material Technology Co., Ltd.” The new registered capital is 2.917 billion yuan. The stock code remains unchanged, and the stock abbreviation will be updated after the company completes the name change and submits the application to the exchange.

ST Jinglan said that after completing bankruptcy reorganization at the end of 2023, the new actual controller has led the company to fully transform its core business into zinc and indium solid hazardous waste resource utilization and rare metal extraction centered on indium. Leveraging indium resource advantages and preparations made over the past two years for high-density ITO (indium tin oxide) target materials, the company has officially entered the high-density ITO target market, further extending its strategic advantage and core competitiveness into this field to maximize value and shareholder returns.

Indium, a strategic rare metal, is known as the “electronic industry MSG” and is the core raw material for ITO targets, widely used in LCD panels, photovoltaic cells, optical communication modules, automotive dimming glass, and other high-tech fields.

However, ST Jinglan’s operational situation remains challenging, with continuous losses over several years. After bankruptcy reorganization at the end of 2023, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in 2024 is expected to be -119.396 million yuan; for 2025, it is forecasted to be between -220 million and -150 million yuan.

In the announcement, ST Jinglan stated that although revenue is expected to grow in 2025, its main business remains in a strategic transformation phase without stable profitability. Whether the company can successfully turn losses into profits in the future depends on multiple uncertain factors, including industry cycle fluctuations, market price changes, cost control effectiveness, recovery of financing capabilities, and the success of new business implementation. Investors are advised to pay close attention to these risks.

ST Jinglan also highlighted that its main business features significant cyclicality and policy dependence:

1. Price fluctuation risk: Product prices are affected by global supply and demand, macroeconomic factors, and futures markets, with large swings directly impacting profitability;

2. Environmental policy adjustment risk: The industry is heavily influenced by environmental regulation policies. Future increases in standards or stricter supervision could lead to higher environmental investment and operational restrictions;

3. Market competition risk: The company’s business areas attract multiple competitors, with increasing industry rivalry. If the company cannot develop core competitiveness in technology R&D, product quality, and cost control, it may face market share decline and reduced profitability.