Wanbangda announced that, as the original counterparty Chen Ziqing failed to raise the expected funds, the company plans to transfer its 87.55% stake in the holding subsidiary Heilongjiang Jingshenghua to the actual controller and chairman Wang Piaoyang for 284 million yuan, constituting a related-party transaction. After the transfer, Wang Piaoyang will hold 87.55% of Heilongjiang Jingshenghua, and Chen Ziqing will hold 12.45%. The transaction also passively creates related-party guarantees and related-party financial assistance. As of the announcement date, Wanbangda's guarantee balance for Heilongjiang Jingshenghua is 12 million yuan, and the net creditor's rights amount to 254 million yuan. Wang Piaoyang provides joint and several liability guarantees, but the repayment period is relatively long, with only 21.30% to be repaid by the end of 2026 and the remainder extended to the end of 2028. Heilongjiang Jingshenghua incurred losses in both 2025 and the first quarter of 2026, with net profits of negative 26.3352 million yuan and negative 10.9506 million yuan respectively. Wanbangda's net profit attributable to the parent company in 2025 was a huge loss of 255 million yuan. This divestiture of the loss-making subsidiary aims to focus on the main business of new chemical materials and improve asset operation efficiency.
Beijing Water Business DoctorThe subsidiary is loss-making and being divested, but the transaction involves related-party guarantees and extended repayment terms, indicating financial strain.