Stock Price Surges Over 170% in Two Months, ST Jinglan Halts Trading Again Starting Today

A lack of fundamental support has once again brought a sudden halt to the capital frenzy.

On the evening of March 12, Yingta New Materials (Harbin) Co., Ltd. (ST Jinglan (rights protection), SZ000711, stock price 4.65 yuan, market value 13.565 billion yuan), which recently changed its name, announced that due to the stock price deviating significantly from the company’s performance, trading would be suspended for investigation starting from the market open on March 13.

Noticing since late January this year, ST Jinglan’s stock price has skyrocketed like a runaway horse, with a total increase of 176.79% in just over a month. However, behind this hype, driven by concepts like “target material transformation,” “asset injection,” and “overseas mining acquisitions,” the company faces an expected loss of over 150 million yuan in 2025, overdue payments of tens of millions from its controlling shareholder, and strained cash flow.

Now, the Shenzhen Stock Exchange has taken decisive action against abnormal trading behaviors. With a high price-to-book ratio of 23 times, how much more bubble can ST Jinglan blow?

Stock Price Surge Draws Regulatory Attention; Valuation Bubble Far Exceeds Industry Level

ST Jinglan’s recent performance has been wildly volatile. Data shows that on March 10, 11, and 12 of 2026, the stock’s closing price deviation exceeded 14.00% for three consecutive trading days. Over a longer period, from January 23 to March 12, 2026, the stock price increased by 176.79%.

During this period, the stock repeatedly experienced abnormal trading fluctuations, including one instance of severe abnormal volatility.

This is the second time ST Jinglan has been suspended for investigation in a short period.

Previously, from January 23 to February 26, 2026, the stock rose by 116.67%, and trading was suspended for three days starting February 27 for investigation. However, after resuming trading, the market’s enthusiasm remained high.

In response to the increasingly irrational speculation, regulators have acted decisively.

On the evening of March 12, ST Jinglan announced that, according to inquiries and regulatory updates from the Shenzhen Stock Exchange, the company’s stock has recently been under close monitoring. Some investors engaged in abnormal trading behaviors that affected normal trading order, and the exchange has taken disciplinary measures such as suspending trading for relevant investors.

To protect investors’ interests, ST Jinglan applied for a trading halt starting from the market open on March 13, 2026, expected to last no more than five trading days.

The Daily Economic News notes that from a valuation perspective, ST Jinglan’s current stock price is extremely high. As of March 12, 2026, the company’s price-to-book ratio reached 23.41. In contrast, the industry average for resource recycling companies is 2.21.

There is a significant discrepancy between ST Jinglan’s valuation and industry peers, with the latest ratio far exceeding the industry average, which is inconsistent with the company’s ongoing losses and lack of stable profitability in core operations.

In its March 12 evening announcement, ST Jinglan stated that recent stock price fluctuations were influenced by market sentiment and concept speculation. Some market views have overinterpreted the company’s new business development, asset injection, rebranding, and valuation restructuring, leading to overly high expectations that are far from the company’s actual performance.

Weak Fundamentals Hide Multiple Risks; Performance and Operational Issues Are Hard to Cover

Contrasting sharply with the lively trading is ST Jinglan’s weak fundamentals.

In terms of profitability, ST Jinglan has been in continuous loss for many years. After completing bankruptcy restructuring at the end of 2023, its net profit attributable to the parent in 2024 was -119 million yuan. According to the 2025 performance forecast, the company expects a further decline in net profit after non-recurring gains and losses, estimated between -220 million and -150 million yuan, representing a 25.63% to 84.26% increase in loss year-on-year.

Additionally, in its March 12 announcement, ST Jinglan mentioned that its zinc-indium solid hazardous waste resource utilization business contributed negative profits in 2024 and 2025. After excluding asset impairments and share-based incentives, the main business remains unprofitable.

The Daily Economic News notes that the core concepts supporting the stock’s surge are highly uncertain and even seem to be “pie in the sky.”

On March 9, 2026, ST Jinglan completed a business registration change, officially renaming itself to “Yin Target New Materials (Harbin) Co., Ltd.” However, “Yin Target New Materials” is currently just an empty shell concept.

ST Jinglan states that its target material business is still in the stage of equipment inspection and re-commissioning of the acquired production lines, and has not yet officially started production or generated revenue or profit. The downstream customers in the ITO target industry have strict requirements, and even if the company produces products, they require lengthy validation periods. Market development and order acquisition face significant uncertainties.

Furthermore, market expectations for asset injection from the controlling shareholder’s Xinlian Environmental Technology Co., Ltd. (“Xinlian Tech”) were very high. But in reality, the industry investor promised to initiate asset injection before December 31, 2025, yet the company has overdue on its restructuring plan. Due to prior administrative penalties, the company expects to be unable to complete asset injection via share issuance within the next three years and can only use cash. As of the third quarter of 2025, the company’s cash on hand was only 9.1263 million yuan.

ST Jinglan warns that, given the large scale of Xinlian Tech and limited funds, it plans to acquire assets in batches via cash, with a risk that the full injection may not be completed before the end of 2027. Rumors that ST Jinglan will establish a global indium resource monopoly are significantly exaggerated. In fact, Xinlian Tech’s Indium production at its Yuetong base over the past five years was only 96, 114, 99, 47, and 5 tons respectively.

Additionally, the integrity and capital chain of the controlling shareholder are under dual threat, casting a “Damocles sword” over the company. According to the 2023 restructuring investment agreement, the controlling shareholder, Yunnan Jiajun, triggered a performance compensation obligation of 52.0851 million yuan for 2024. However, as of now, only 6 million yuan has been received, with 46.0851 million yuan overdue. Due to failure to fulfill the performance compensation commitments disclosed publicly, Yunnan Jiajun has been publicly criticized by the Shenzhen Stock Exchange and subject to regulatory correction measures by the Heilongjiang Securities Regulatory Bureau.

Considering the expected losses in 2025, the company is likely to trigger new, substantial cash compensation obligations. As of February 27, 2026, Yunnan Jiajun pledged 92.59% of its shares in the company, facing enormous liquidity pressure and raising doubts about future performance. Additionally, the legacy performance compensation owed by Zhongke Dingshi still involves over 16 million yuan in cash and 14 million shares, with high risk of non-recovery.