Hainan Development Holdings Nanhai Co Ltd

At the midday close on September 17, Hainan Development hit limit down, becoming the only stock in the entire market to do so. According to an announcement dated September 1, 2026, the company's accumulated litigation and arbitration matters remain in the enforcement stage. One case involves a disputed amount of 43.7705 million yuan, and the funds actually frozen in related bank accounts total 56.9922 million yuan, accounting for 9.53% of the most recent audited net assets. According to the half-year report dated August 21, 2026, the company's first-half operating revenue was 1.556 billion yuan, down 0.49% year on year, and net profit attributable to the parent company was a loss of 66.9434 million yuan. On that day, the market surged in early trading before pulling back, and the three major indices all closed lower. The Shanghai Composite Index fell 0.36%, the Shenzhen Component Index fell 0.29%, and the ChiNext Index fell 0.12%. Half-day turnover on the Shanghai and Shenzhen markets reached 1.24 trillion yuan, an increase of 79.5 billion yuan compared with the previous trading day, and more than 3,100 stocks declined across the market.

Hainan Development released its 2026 interim report, with net profit attributable to the parent company at negative 66.94 million yuan, an increase of 146 million yuan compared with the same period last year, narrowing the loss year-on-year. The company's total operating revenue was 1.556 billion yuan, and net cash flow from operating activities was negative 442 million yuan. The latest asset-liability ratio was 84.73%, and gross margin was 16.65%, up 7.66 percentage points from the same period last year, marking three consecutive years of growth. The latest return on equity was negative 12.59%, up 12.22 percentage points from the same period last year, with diluted earnings per share at negative 0.08 yuan.

Hainan Development disclosed its earnings forecast, expecting a net loss attributable to the parent of 58 million to 75 million yuan in the first half of 2026, compared with a loss of 213 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 93 million to 120 million yuan, compared with a loss of 220 million yuan a year earlier. The change in performance is mainly due to four factors. First, after acquiring control of Hangzhou Wangying Technology in August 2025, the newly added mass consumer business was consolidated, bringing profit growth. Second, Haikong Sanxin Bengbu New Energy Materials and Sanxin Huizhou Curtain Wall Products were taken over by court-appointed administrators, causing the company to lose control and no longer consolidate them, thereby stopping losses. Third, based on changes in the internal and external environment such as the real estate market, the company preliminarily judges that related assets may show further signs of impairment and plans to make additional impairment provisions. Fourth, the former controlling shareholder, AVIC General Aircraft, assumed the guarantee responsibility for the company's bank loan guarantee for its former subsidiary Hainan AVIC Special Glass Materials, with the company providing a counter-guarantee using Shiyan assets. This period may see adjustments based on impairment test results, affecting non-recurring gains and losses.

The bankruptcy liquidation application of Hainan Development Holding's subsidiary, Sanxin Huizhou Curtain Wall Products Company, has been accepted by the court, and the administrator has officially taken over. Recently, the administrator completed the handover procedures for the company seal and business license. After the Curtain Wall Products Company was taken over, the company lost control over it and it will no longer be included in the consolidated financial statements. Creditors should file their claims with the administrator by July 24, 2026, and the first creditors' meeting will be held on August 6, 2026. The company and its wholly-owned subsidiary, Haikong Special Glass, will file claims in accordance with regulations, but the final bankruptcy liquidation plan remains uncertain, and the specific impact will only be determined once the plan is finalized. In addition, the company and its controlled subsidiaries have accumulated litigation and arbitration amounts totaling 94.2578 million yuan over the past twelve consecutive months, accounting for 15.75% of the absolute value of the company's latest audited net assets. Among these, the amount for cases where the company is the plaintiff is 89.3109 million yuan, and the amount for cases where the company is the defendant is 4.9469 million yuan.