Recently, *ST Asia, once known as the “number one stock in home decoration materials”, has triggered widespread discussion in the market.
During the three trading days of June 17th, June 18th, and June 22nd, the company’s stock price fluctuated continuously, and the cumulative decline in just three days exceeded 12%.
What caused more dissatisfaction among investors than the drop in stock prices was that many investors reported that the company had not responded to investor questions on the interactive platform in the past year, and no one answered the public contact information for a long time, as if it was in a “lost contact” state.
As a benchmark company in the architectural coatings industry, Asia Energy has now been issued a delisting risk warning. The actual controller’s shares have been auctioned by the judiciary, and major shareholders acting in concert are also facing passive reductions in their holdings. The former industry leader is on the verge of delisting. The situation is sad.
The crisis is first reflected in the continued deterioration of financial data: in 2023, the company also achieved revenue of 3.11 billion yuan and net profit of 60.18 million yuan; in 2024, revenue fell by 34% year-on-year, with a huge net profit loss of 329 million yuan; the situation in 2025
Further deteriorating, the annual revenue was only 462 million yuan, a year-on-year plunge of 77.47%, and the loss expanded to 1.381 billion yuan; entering 2026, the first quarter revenue dropped again by 65.6% to only 35.69 million yuan, with a net profit loss of 97.59 million yuan.
The continuous huge losses directly penetrated the company’s balance sheet. At the end of 2025, the company’s net assets attributable to its parent company were negative 68.73 million yuan. Therefore, a delisting risk warning was officially implemented in May 2026, and the stock abbreviation was changed to “*ST Asia”.
At the same time, risks at the shareholder level are also intensively erupting: in early June, the company disclosed that Run Hecai, a concerted actor, was facing forced liquidation of up to 3% of its shares due to breach of contract in margin financing and securities lending; on June 17, the company also announced that 10 million shares held by actual controller Li Jinzhong had been judicially auctioned, of which 8 million shares had been sold.
The simultaneous emergence of performance losses, equity turmoil, and delisting warnings means that Asia has evolved from operating pressure to survival pressure.
Many industry analysts pointed out that Asia’s predicament is directly related to the downturn of the real estate industry. The company has long relied on the real estate development market. As the real estate industry enters a period of deep adjustment, a large number of projects have been reduced, orders have shrunk rapidly, and revenue has been directly impacted.
However, the downturn in real estate is only the trigger. The deeper problem is that the company carried out radical expansion during the period of high industry prosperity. The development strategy of deploying production bases across the country and expanding production capacity on a large scale is essentially based on the expectation of continued prosperity of real estate. When market demand shrinks sharply, excess production capacity quickly turns into a heavy burden.
In 2025, the company suspended production of the Shijiazhuang factory, Chongqing factory and Chuzhou waterproof factory, and also stopped the construction of the Guangzhou factory, which also reflects that the previous expansion pace was significantly ahead of market demand.
At the same time, real estate customer risks are concentrated and it is difficult to collect a large number of accounts receivable. The company has to make large impairment provisions for fixed assets, projects under construction and accounts receivable. The huge losses in 2025 largely come from the concentrated release of these historical burdens.
The company has previously been subject to regulatory penalties for issues such as illegal guarantees and untimely information disclosure, which exposed obvious shortcomings in internal governance and risk control.
Overall, Asia’s crisis is the result of the superposition of multiple factors: “real estate dependence + excessive expansion + failure of risk control.”
From the perspective of industry development, Asia is not completely without a turnaround. The architectural coatings industry is currently transforming from an incremental market to a stock market. my country has about 120 billion square meters of stock buildings, and the annual urban building renovation area is expected to reach 6 billion square meters. The renovation of old communities, urban renewal, urban village renovation and infrastructure construction will continue to release market demand. Industry demand has not disappeared, but is in the reconstruction stage.
But the company’s biggest challenge at present is not the market, but cash flow and balance sheet repair. Net assets have turned negative, operating scale has shrunk by nearly 90% from its peak, and financing capabilities have continued to weaken due to equity freezes and judicial auctions.
If the company wants to get rid of the risk of delisting in the future, the company needs to complete at least three tasks: stabilizing cash flow, improving asset quality, and accelerating its transformation into the existing renovation and infrastructure market. For companies that have already put on the “*ST” hat, every step is a race against time.
Asia’s development path from industry leader to the edge of delisting reflects the price companies pay for misjudgment of industry cycles and inadequate risk management.
Not answering calls and not responding to investors’ questions may just be superficial. What is truly alarming is that when a listed company gradually loses its willingness to communicate with investors, it is also losing one of the market’s most valuable assets: trust.
For *ST Asia, the biggest test in the future is not just whether it can achieve profitability, but whether it can regain market confidence and prove that it still has the qualifications to stay in the capital market.
