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

A capital frenzy lacking fundamental support has been abruptly “slammed on the brakes” again.

On the evening of March 12, newly renamed Indium Target New Materials (Harbin) Co., Ltd. (ST Jinglan, SZ000711, stock price 4.65 yuan, market value 13.565 billion yuan) announced that due to the stock price deviating significantly from the company’s performance, trading will be suspended for investigation starting from the market open on March 13.

The “Daily Economic News” reporter noted that since late January this year, ST Jinglan’s stock price has skyrocketed like a runaway horse, with a cumulative increase of 176.79% in just over a month. However, behind this hype, which involves “target material transformation,” “asset injection,” and “overseas mining acquisitions,” the company is expected to lose over 150 million yuan in 2025, with its controlling shareholder overdue on a ten-million-yuan compensation payment, and cash flow is tight.

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 extremely volatile. Data shows that the stock’s closing prices on March 10, 11, and 12, 2026, deviated by more than 14.00% cumulatively over three consecutive trading days. Over a longer period, from January 23 to March 12, 2026, the stock has increased by 176.79%.

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

This marks the second suspension for investigation within a short period.

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

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

According to a late-night announcement on March 12, ST Jinglan stated that, based on inquiries, the Shenzhen Stock Exchange’s official regulatory updates show that the stock has recently been under close monitoring. Some investors engaged in abnormal trading behaviors affecting 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” reporter noted 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 was as high as 23.41, while the industry average for resource recycling companies, according to China Industry Association classifications, is 2.21.

There is a significant discrepancy between ST Jinglan’s high price-to-book ratio and industry peers, which is severely inconsistent with the company’s ongoing losses and lack of stable profitability in core business operations.

In the March 12 evening announcement, ST Jinglan stated that recent stock price fluctuations have been 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.

Fundamentals Are Weak with Multiple Risks; Performance and Operational Issues Cannot Be Hidden

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 reorganization at the end of 2023, its net profit attributable to the parent in 2024 is projected to be -119 million yuan. According to the 2025 performance forecast, the company’s net profit excluding non-recurring gains and losses is expected to further decline to between -220 million and -150 million yuan, representing a year-on-year increase in loss of 25.63% to 84.26%.

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, share-based incentives, and other non-operating factors, the main business remains in a loss state.

The “Daily Economic News” reporter observed 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 “Indium Target New Materials (Harbin) Co., Ltd.” However, “Indium Target New Materials” is currently just an empty shell concept.

ST Jinglan stated that its target material business is still in the stage of maintenance and re-commissioning of the acquired production lines, with no formal production or related revenue and profit yet. The downstream customers in the ITO target industry have strict product requirements, and even if the company produces products, they require lengthy validation periods. Market development and order acquisition face significant uncertainties.

Furthermore, the market had high expectations for asset injection from the controlling shareholder Xinlian Environmental Technology Co., Ltd. (“Xinlian Tech”). However, the reality is that the industry investor promised to initiate asset injection before December 31, 2025, but the company has overdue on the restructuring plan. Due to prior administrative penalties, the company expects to be unable to implement 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 warned that, given Xinlian Tech’s large size and limited funds, it plans to acquire assets in batches with cash, risking failure to complete all asset injections by the end of 2027. Rumors that ST Jinglan will monopolize global indium resources are significantly exaggerated. In fact, Xinlian Tech’s Indium production at its Yuanzhou headquarters 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 crisis, posing a “Damocles sword” over the listed 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, the company has only received 6 million yuan, with 46.0851 million yuan overdue. Due to failure to fulfill the performance compensation commitments disclosed publicly, Yunnan Jiajun has been given a notice of criticism by the Shenzhen Stock Exchange and administrative regulatory measures by the Heilongjiang Securities Regulatory Bureau.

Considering ST Jinglan’s projected losses in 2025, a new, larger cash compensation obligation is likely to be triggered. As of February 27, 2026, Yunnan Jiajun pledged 92.59% of its shares in the company, facing enormous liquidity pressure and doubts about future performance. Additionally, the legacy performance compensation from Zhongke Dingshi still involves over 16 million yuan in cash and 14 million shares that have not been recovered, with high risk of non-recovery.