In 2026, Over Ten Listed Firms Sell Loss-Making Subsidiaries for Nominal RMB 1
Since the start of 2026, more than ten listed companies have announced the sale of stakes in their subsidiaries at a nominal consideration of RMB 1, typically through public listings. Most of the divested subsidiaries have suffered consecutive losses, with many reporting negative net assets. The transactions allow the parent companies to strip loss-making assets from their consolidated financial statements, thereby improving reported results. Upon completion, the subsidiaries are deconsolidated from the listed firms' accounts.
Since 2026, more than ten listed companies have successively issued announcements to sell the equity of their subsidiaries at a nominal consideration of RMB 1 via public listing. Most of the subsidiary stakes transferred at such low prices have experienced consecutive losses, and many are in a state of insolvency. The transaction announcements show that such transfers are generally conducted through public listings, with the consideration set at a symbolic RMB 1.
From the disclosed announcements, the assets of the subsidiaries being sold often face ongoing operational difficulties, with some having negative net assets. Through such transactions, listed companies strip loss-making assets from their consolidated statements to optimize their current financial reports. After the completion of the transactions, the relevant subsidiaries are no longer included in the listed companies' consolidation scope.