Jie Rong Technology's subsidiary receives 100 million yuan debt forgiveness from the controlling shareholder. In February, the company, the controlling shareholder, and the actual controller were recently filed for investigation due to information disclosure issues.

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        By Wang Zepeng | Edited by Xu Shaohang              

On the evening of March 31, Rongtech (SZ002855, share price 12.16 yuan, market cap 2.996 billion yuan) issued an announcement stating that its wholly owned subsidiary, Jierong Mould Industrial (Hong Kong) Co., Ltd. (hereinafter referred to as “Jierong Mould”), received an unconditional debt waiver of 100 million yuan from its controlling shareholder, Jierong Technology Group Co., Ltd. (hereinafter referred to as “Jierong Group”).

At the end of January 2026, Jierong Technology released a performance announcement showing a significant expected loss. For this company, which is expected to expand its loss in 2025 to nearly 400 million yuan, the debt waiver is undoubtedly a timely boost. In its announcement, Jierong Technology said that this debt waiver is beneficial to the company’s healthy and sustainable development and improves the company’s ability to continue operating.

A reporter from the “Daily Economic News” found that in the first three quarters of 2025, Jierong Technology’s financial expenses exceeded 30 million yuan, of which more than 19 million yuan was interest expense, showing a clear increase compared with the same period in 2024. However, the company’s net cash flow generated from operating activities remained positive; as of the end of the third quarter of 2025, its monetary funds still stood at more than 94 million yuan.

It needs to be noted that this generous waiver from the controlling shareholder occurred at a particularly sensitive time. On February 26, 2026, Jierong Technology, Jierong Group, and the actual controller, Zhao Xiaqun, received the “Notice of Filing for Investigation” issued by the China Securities Regulatory Commission (CSRC). The reason was alleged violations of laws and regulations regarding information disclosure.

On the evening of March 31, 2026, Jierong Technology announced that the company’s board meeting held on that day reviewed and approved the “Proposal on Accepting the Controlling Shareholder’s Debt Waiver and Related-Party Transactions.”

According to the announcement, Jierong Technology’s controlling shareholder, Jierong Group, issued a “Waiver Deed,” deciding to waive the 100 million yuan principal of the loan that Jierong Mould, the company’s wholly owned subsidiary, should repay to Jierong Group. For the remaining principal and interest not waived, they will still be carried out according to the relevant agreements signed by both parties.

Based on the announcement, the terms of this debt waiver appear especially “generous.” According to the contents of the “Waiver Deed,” starting from the effective date of the waiver, Jierong Group unconditionally and irrevocably waives and releases Jierong Mould from its repayment obligations regarding that 100 million yuan loan.

In its announcement, Jierong Technology stated that this debt waiver is beneficial to the company’s healthy and sustainable development and improves the company’s ability to continue operating. However, Jierong Technology did not disclose in its latest announcement the outstanding balance of financial support provided by Jierong Group to Jierong Mould; it only explained that, as of February 28, the total amount of cumulative recurring related-party transactions between the company within the past twelve months and Jierong Group and other enterprises controlled by its actual controller was approximately 196 million yuan.

A reporter’s inquiry found that in January this year, Jierong Technology released an announcement stating that, to improve financing efficiency and meet the funding needs of daily production and operations, Jierong Mould planned to accept financial support from Jierong Group of no more than 100 million yuan. The interest rate would not exceed the benchmark bank loan interest rate for the same period in the Hong Kong market, where Jierong Group is registered. Jierong Mould may use the financing cyclically within the aforementioned limit and may repay early.

The controlling shareholder’s “generous outpouring” comes at a time when Jierong Technology is mired in both performance losses and a regulatory investigation. Just a month earlier, Jierong Technology issued an announcement stating that on February 26, the company, its controlling shareholder Jierong Group, and the actual controller Zhao Xiaqun received the “Notice of Filing for Investigation” issued by the CSRC. Due to alleged violations of laws and regulations regarding information disclosure, the CSRC decided to file for investigation into the company, Jierong Group, and Zhao Xiaqun.

The reporter noted that Zhao Xiaqun is the founder of Jierong Technology. He was born in 1954. In early 2024, Zhao Xiaqun stepped back from active duties to become the company’s honorary chairman. However, in November 2025, when he was over seventy years old, Zhao Xiaqun returned to serve again as chairman. Who would have thought that he would soon face the filing-for-investigation matter again.

At the same time, the company’s operating situation is also not optimistic. At the end of January this year, Jierong Technology released its 2025 performance forecast, expecting 2025 net profit attributable to shareholders to be -397 million yuan, and the loss amount would further increase from -298 million yuan in 2024. The company explained that the market demand for products in the traditional business segments—precision structural parts for phones and tablets—had not shown any clear improvement, and market selling prices were under pressure, leading to overall performance losses for the company.

The reporter also noted that during 2025, Jierong Technology’s board of directors reviewed and approved proposals for the controlling shareholder to provide financial support to Jierong Technology multiple times.

In fact, in recent years, Jierong Technology has been in a state of loss. According to Eastmoney Choice data, from 2021 to 2024, Jierong Technology’s cumulative losses were nearly 800 million yuan. This time, the controlling shareholder’s waiver of 100 million yuan of debt can, to a certain extent, ease the company’s financial pressure, but given ongoing losses and a pending regulatory investigation, Jierong Technology still faces significant challenges in truly getting out of its predicament.

Source of the cover image: Zhu Yu

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