Zhangjiajie Tourism Group Co., Ltd. (Stock Code: 000430.SZ), known as the "first landscape tourism stock," has entered a critical phase as its bankruptcy restructuring application was officially accepted by the court.
On November 3, the company announced receiving the "Civil Ruling" and "Decision" from the Zhangjiajie Intermediate People's Court in Hunan Province, approving its restructuring petition. Following Shenzhen Stock Exchange regulations, the company's shares were suspended for one day on November 4 and resumed trading on November 5 with a delisting risk warning. The stock abbreviation changed from "ST Zhangjiajie" to "*ST Zhanggu," with a daily price fluctuation limit of 5%.
In the secondary market, *ST Zhanggu surged by 4.94% to close at CNY 8.28 on November 5, with net capital inflows hitting a six-month high of CNY 19.18 million. However, the stock opened lower on November 6, dropping 2.30% to CNY 8.09 by 10:00 AM.
Notably, the court had extended the pre-restructuring period four times since January 2025. The formal acceptance comes over a year after the initial pre-restructuring process began in October 2024.
Industry experts highlight the company's restructuring value lies primarily in its listed shell and tourism operation licenses. However, despite a temporary improvement in Q3 2025 earnings—driven by government subsidies and tax relief—the company continues to face deteriorating cash flow and weak core operations.
Key challenges include resolving the underperforming "Dayong Ancient City" project, which reported a net loss of CNY 596 million in 2024, exceeding the company's total losses. The restructuring process also involves balancing conflicting interests, as the controlling shareholder, Zhangjiajie Economic Development Investment Group, is simultaneously a major creditor.
While 45 potential investors submitted restructuring plans during the pre-restructuring phase, uncertainties remain. Creditors must file claims by December 5, 2025. Failure to execute a viable restructuring plan could lead to bankruptcy and delisting.
Analysts caution that the Q3 profit surge—405% YoY to CNY 10.87 million—was largely supported by non-operational gains, including CNY 10.43 million in government subsidies. Operating cash flow fell 39% YoY to CNY 41.89 million, underscoring persistent operational challenges.
The company, listed in 1996, operates secondary attractions like Baofeng Lake and Dayong Ancient City but lacks management rights to Zhangjiajie’s core scenic areas. Cumulative losses exceeded CNY 1.3 billion by Q3 2025, prompting an "ST" designation in April 2025.
Market observers suggest successful restructuring hinges on addressing loss-making assets, reconciling creditor interests, and attracting strategic investors to facilitate business transformation.
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