Jinhongshun Holdings' major shareholder's 5 share pledges reach default

Staff Reporter Gui Xiaosun

On the evening of February 25, Suzhou Jinhongshun Automotive Parts Co., Ltd. (hereinafter referred to as “Jinhongshun”) announced that the 8.81 million shares held by its controlling shareholder, Hainan Zhongde Technology Co., Ltd. (hereinafter referred to as “Zhongde Technology”), which were pledged, have recently expired. The pledge has not yet been解除, and the shares remain pledged, with a breach of contract situation already triggered. If Zhongde Technology cannot settle the debt or reach a settlement agreement in time, it may face legal action, which could lead to further disposal of these shares.

On August 9, 2025, Jinhongshun issued a related announcement regarding the pledge of shares by its controlling shareholder. The announcement indicated that the breach of contract involved two expiration dates, February 7 and February 17 of this year.

Regarding the breached shares, Jinhongshun stated that it conducted a “self-inspection” and found that the controlling shareholder had five pledge financing contracts that had breached, and the stock pledges had expired.

“Listed company controlling shareholders did not主动 inform the company of the breach of share pledge, directly violating the information disclosure obligations set by securities laws and regulations. Share pledge breaches relate to the stability of the company’s equity structure and control rights, and are重大信息 that should be disclosed promptly by law. Controlling shareholders have the responsibility to immediately notify the listed company in writing once they become aware of such breaches,” said Lawyer Wang Zhibin of Shanghai Minglun Law Firm in an interview with Securities Daily. This kind of行为 of not主动 disclosure can directly cause delays in the company’s information disclosure, undermining the timeliness and fairness of information in the capital market. Ordinary investors cannot及时了解 the key risks such as disposal of pledged shares or changes in control rights, leading to a lack of accurate and truthful information for investment decisions, and their合法权益 cannot be effectively protected.

The announcement shows that, as of now, Zhongde Technology has not received any breach通知 from the pledgee. However, if Zhongde Technology cannot settle the debt or reach a settlement agreement in the future, it may lead to legal action against the controlling shareholder, resulting in further disposal of the pledged shares.

From publicly available information, Zhongde Technology’s违规借贷 has already impacted Jinhongshun’s performance. Previously, the company released a performance预告 indicating that net profit attributable to shareholders of the listed company is预计 to be between -82.4 million and -123.6 million yuan in 2025; net profit attributable to shareholders after deducting非经常性损益 is预计 to be between 2.4 million and 3.6 million yuan. The main reason for the预亏 is the controlling shareholder’s违规借贷 leading to litigation and bad debt provisions.

The announcement also mentions that, as of now, all of Zhongde Technology’s shares in Jinhongshun are under pledge/judicial标记/judicial冻结/轮候冻结. If these frozen or judicially marked shares are further disposed of by judicial means (such as auction or sale), it could lead to a change in the company’s actual control, posing risks to control stability.

Lawyer Wang Zhibin told Securities Daily that based on existing judicial cases, breaches of pledged shares by controlling shareholders often伴随 litigation, and the shares may be frozen by courts. If the situation worsens, it could affect the company’s资产安全. Therefore, timely and comprehensive information disclosure is especially重要. “Concealing” not only shifts individual crises onto small and medium investors but also weakens the规范性 of corporate governance, reduces market and investor trust in the company and its controlling shareholder, and has a negative impact on the company’s image and正常运作 in the capital market.

(Editor: Sun Qian)