In 2026, ST Asia, a listed waterproof building materials company, fell into a severe capital crisis.
On May 25, ST Asia issued a number of major announcements, exposing changes in three core capitals. This series of changes brought the company to the edge of a thunderstorm.
First, the controlling shareholder acting in concert triggered a debt default and passively reduced its holdings.
Shanghai Runhecai Asset Management Co., Ltd., as the controlling shareholder acting in concert, held 27.1255 million shares of the company before the reduction, accounting for 6.33% of the total share capital.
Due to the inability to repay financing debts, the brokerage firm’s forced liquidation procedures were triggered.
As of the expiration of the window period on May 25, although some shareholding reductions have been completed, there are still 7.822 million shares that are at risk of liquidation, and the company’s potential selling pressure in the secondary market has not been completely eliminated.
Secondly, core institutional financial shareholders cleared their positions and left the market completely.
Caidong Huixin No. 4 Private Securities Investment Fund, a subsidiary of Zhuhai Hengqin Caidong Fund Management Co., Ltd., holds 22.03 million unrestricted tradable shares of the company, accounting for 5.14% of the total share capital.
The fund directly completed all reduction plans and accurately cleared all planned reduction shares. This reflects the capital market’s pessimistic expectations of deterioration in corporate fundamentals and pressure on industry prospects.
Finally, the judicial auction of tens of millions of shares of another controlling shareholder acting in concert was fully completed.
8.5 million unrestricted tradable shares held by Shanghai Runtongze Investment Co., Ltd. were judicially auctioned, and all bidders were natural person investors.
Although the online auction phase is over, there are still compliance uncertainties in share transfers.
After the auction is completed, Runtong Ze’s shareholding ratio will decrease, the shareholding scale of the controlling shareholder’s concerted action system will continue to shrink, and related party debt risks will exist for a long time.
Judging from the company’s financial report data, ST Asia’s operating income in 2025 is only 462 million yuan, a sharp decline of 77.47% year-on-year. The annual net profit loss attributable to the parent company is as high as 1.381 billion yuan, ranking first among A-share waterproof building materials listed companies.
Revenue has been cut in half and huge losses have continued to expand, which are the core reasons why shareholders have lost confidence and left the market in batches.
Deeply digging into the core dilemma of the main waterproofing business, ST Asia has an extremely single channel structure, over-reliance on the traditional engineering track, the scale of accounts receivable continues to rise, and large amounts of bad debts are concentrated in the provision, swallowing up corporate profits.
While leading companies have laid out home decoration and waterproofing and other fields in advance to complete channel structure optimization, ST Asia has lagged behind in its transformation and missed out on the structural dividends of the industry.
However, the 8.5 million shares in the judicial auction were all sold, indicating that the company’s current stock price has fully digested the early negative news, the bottom of the valuation has basically appeared, and there are market funds willing to take on the chips.
The six-month lock-up rule for the transferee locks in new selling pressure in the short term and reserves a time window for the company’s subsequent debt resolution and operational adjustments.
The exit of inferior affiliated shareholders and pessimistic institutional shareholders can also optimize the shareholder structure and clear some obstacles for subsequent strategic reorganization and capital integration.
From an industry perspective, the current situation of ST Asia confirms the final trend of the waterproof industry of “survival of the fittest, and the strong will always be strong”.
After the in-depth adjustment of the industry from 2024 to 2025, inferior production capacity will be cleared out at an accelerated pace, and market resources will be concentrated on the leading players.
As a listed platform, ST Asia still has a certain foundation for survival. If it can resolve debt risks, optimize its equity structure, and focus on its main business to improve quality and efficiency, there is a possibility of a slight recovery in its fundamentals.
