*ST Rock Faces Delisting as Losses Mount and Leadership Transitions
*The struggling Chinese liquor company, ST Rock (SH600696), is bracing for significant financial setbacks and has already been delisted from the Shanghai Stock Exchange, amid a challenging market environment and internal turmoil.**
*ST Rock announced on July 14th that it anticipates a net loss of between 50 million and 75 million yuan for the first half of 2025, representing a decline of 3.07% to 35.38% compared to the same period last year. This projected downturn follows a deeply troubled 2024, marked by substantial revenue declines and a net loss of 217 million yuan. The company’s stock was officially delisted on April 23, 2025, after failing to meet listing requirements.
Industry Headwinds and Economic Pressures
The company attributes its woes to a confluence of factors, primarily a sluggish recovery in the Chinese liquor industry. According to a company release, “The recovery of the liquor industry in the first half of 2025 did not meet expectations, and the policy impact was great, and the industry was under overall pressure.” Insufficient consumer spending and a price war have created a difficult environment, particularly for smaller brands like *ST Rock. The industry is currently experiencing a destocking cycle, with a clear trend toward consolidation among leading producers.
Further exacerbating the situation, *ST Rock has faced significant financial constraints since late 2023. The company reports difficulties in collecting rebates and a subsequent reduction in market investment.
Legal and Leadership Crisis
The company’s troubles extend beyond market conditions. A series of legal and governance issues have shaken investor confidence. In September 2024, Han Xiao, *ST Rock’s actual controller, was taken into criminal custody due to allegations of illegal fundraising involving Haiyin Wealth. Simultaneously, his shares in the company were frozen by judicial action.
These events triggered a leadership vacuum. Han Xiao resigned as general manager in December 2024, and was replaced by Juno, a 29-year-old who previously served as administrative director at Guizhou Gaojiang Liquor Co., Ltd. Juno also assumed the role of legal representative of the company. “The general manager of the company is the legal representative of the company,” the company stated in its announcement regarding the leadership change.
Deepening Financial Losses
The impact of these challenges is starkly reflected in *ST Rock’s financial performance. In 2024, operating income plummeted 82.54% year-over-year to 285 million yuan. After excluding non-core business revenue, operating income fell even further, dropping 83.51% to 268 million yuan. The net loss attributable to shareholders reached 217 million yuan, a dramatic reversal from the 87.0704 million yuan profit reported in the same period the previous year.
Adding to the financial strain, *ST Rock faced lawsuits from banks and suppliers in the first half of 2025, resulting in increased overdue interest and expenses. These legal battles further eroded the company’s profitability.
A Future in Doubt
Established in 1989, ST Rock, with a registered capital of 334 million yuan, is majority-owned by Shanghai Guijiu Enterprise Development Co., Ltd., which holds 42.88% of the shares. However, the company’s current trajectory raises serious questions about its long-term viability. The combination of industry headwinds, legal challenges, and financial losses paints a grim picture for ST Rock as it navigates a period of significant uncertainty.
