The assets sale by *ST Guangtang faces an extremely tight timeline.

Because the audited net assets attributable to shareholders of the listed company at the end of 2025 were negative, the company's shares have been subject to delisting risk warning since April 30, 2026.

If the audited net assets at the end of 2026 remain negative, the company will face termination of listing.

The Yun'ou Logistics being sold is precisely the non-compliant subsidiary mentioned in the prior penalty notice, and *ST Guangtang was severely punished by regulators as a result.

If this equity transfer is completed, Yun'ou Logistics will exit the scope of the listed company's consolidated financial statements.

Why sell 488 million yuan in 'subsidiaries' to preserve the shell

*ST Guangtang (ASX: ST) stated in its announcement that through this transaction, the company will divest its logistics and warehousing business as well as its sugarcane seedling planting and sales business, focus on its core sugar manufacturing operations, effectively resolve the resource dispersion problem caused by diversified expansion, and revitalize existing assets.

The delisting risk has been effectively alleviated.

This transaction still needs to be submitted to the shareholders' meeting for approval, and whether it can ultimately be completed and the completion timeline remain uncertain.

Penalty of 9.3 million yuan for information disclosure violations

Although progress on preserving the listing status has shown some light, *ST Guangtang's 'old debts' regarding information disclosure are far from settled.

On June 12, 2026, the company received a 'Notice of Case Filing' from the China Securities Regulatory Commission, and was placed under investigation for suspected information disclosure violations.

Just one month later, the Guangxi Securities Regulatory Bureau issued a 'Prior Notice of Administrative Penalty', identifying the facts of the violations.

Upon investigation, *ST Guangtang's subsidiary Yun'ou Logistics had two violations: first, recognizing transportation and warehousing business revenue across periods; second, recognizing revenue in 2023 for businesses where goods were not actually delivered, without retrospective adjustment after the business was terminated.

The Guangxi Securities Regulatory Bureau intends to order *ST Guangtang to make corrections, issue a warning, and impose a fine of 4 million yuan; other responsible persons were also penalized simultaneously, with total fines amounting to 9.3 million yuan.

With the prior penalty notice issued, the conditions for investor claims have been clarified.

As of now, thousands of investors have registered claims.

Investor claims continue

For *ST Guangtang, whether the 'shell preservation' window period obtained by divesting loss-making assets can be transformed into a genuine recovery of its core sugar business remains to be seen by the market.

Lawyer Liu Peng from Shanghai Huzi Law Firm pointed out that investors who bought between April 3, 2024, and April 28, 2026, and sold after April 29, 2026, or still hold shares at a loss, can register for claims.

For eligible investors, filing claims in accordance with the law is their right.

When participating in claims, investors should prepare materials such as a copy of their ID card, securities account opening certificate, and stock transaction statements stamped with the business department's seal, so that the lawyer team can review whether they meet the claim conditions.

On the evening of October 8, *ST Guangtang (rights protection) disclosed a major asset sale and related-party transaction report (draft), planning to transfer 99.90% equity of Yun'ou Logistics and 100% equity of Nantang Seed Industry to Guangnong Supply Chain Company under its controlling shareholder Guangxi Rural Investment Group, with a total transaction consideration of 488 million yuan, all paid in cash.

This means that *ST Guangtang's net assets will turn from negative to positive, and the delisting risk will see substantial relief.

However, the dark clouds over the company have not completely dissipated.

Due to false records in its annual report, *ST Guangtang received a prior notice of administrative penalty from the China Securities Regulatory Commission in July this year, and investor claims are still being continuously solicited.

The 488 million yuan asset sale to preserve the shell