Analysis of Shenzhen Stock Exchange's Focused Monitoring on Abnormal Fluctuations in Shengtong Energy and Fenglong Co., Ltd.

Based on the regulatory dynamics of the Shenzhen Stock Exchange and multi-channel data, I have prepared this in-depth analysis report for you.

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From January 5 to 9, 2026, the Shenzhen Stock Exchange took self-regulatory measures against 201 cases of abnormal securities trading, involving abnormal trading behaviors such as intraday pumping and dumping, false declarations, etc.; it conducted focused monitoring on “

” (001231.SZ) and “” (002931.SZ), which have experienced severe abnormal fluctuations recently[1][2].

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Indicator	Data
Current Stock Price	Approximately RMB 60.04 (as of the close on January 8)[3]
Consecutive Limit-Up Record	14 consecutive daily limit-ups starting from December 12, 2025
Increase Range	Over 400% compared to the price before the “change of control” announcement
Latest Development	Continued to hit the daily limit after resuming trading on January 6
P/E Ratio	-703.47x (industry average 18.21x)[4]
P/B Ratio	7.85x (industry average 1.95x)[4]

• Core Business: Procurement, transportation, and sales of liquefied natural gas (LNG)
• Financial Status: Net profit was negative for consecutive years from 2023 to 2024[4]
• Free Float: Approximately 25% (controlling shareholder holds about 75%)[4]

Indicator	Data
Current Stock Price	RMB 46.42 (as of the close on January 8)[3]
Consecutive Limit-Up Record	10 consecutive daily limit-ups from December 25, 2025 to January 8, 2026
Increase Range	230% increase compared to the price before the “change of control” announcement[3]
P/E Ratio	2009.52x (industry average 42.01x)[3]
P/B Ratio	10.67x (industry average 3.92x)[3]

• Core Business: Garden machinery engines and electric complete machines, hydraulic control systems, auto parts
• Latest Quarterly Results (2025Q2): EPS of only $0.04, revenue of $130 million
• Profitability: ROE of only 2.76%, net profit margin of 4.89%

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The skyrocketing of the two stocks is directly related to the concept of “acquisition by humanoid robot enterprises”[3][5]:

• On December 11, 2025, Qiteng Robotics plans to acquire the controlling stake of the company for RMB 1.686 billion[4][5]
• The acquirer is a “gazelle” enterprise in Chongqing’s special robot sector, and the actual controller will be changed to Zhu Dong
• Key Warning
  : The company clearly stated that it
  does not involve robot-related business
  , and has no backdoor listing plan within 36 months[4]

• On December 24, 2025, Ubtech Robotics (09880.HK), the “first stock of humanoid robots”, plans to acquire 43% of the shares for RMB 1.665 billion[3]
• The actual controller will be changed to Zhou Jian, founder of Ubtech Robotics
• Key Warning
  : The company clearly stated that it
  has no backdoor listing plan within 36 months and no asset restructuring plan within 12 months
  [3]

There is a huge gap between the valuation levels of the two stocks and the industry average:

• Top Left: Shengtong Energy’s price trend —— started consecutive daily limit-up mode after December 12
• Top Right: Fenglong Co., Ltd.'s price trend —— started 10 consecutive daily limit-ups after December 25
• Bottom Left: P/E Ratio Comparison —— Shengtong Energy’s P/E ratio is negative, Fenglong Co., Ltd.'s exceeds 2000x (industry average 40x)
• Bottom Right: P/B Ratio Comparison —— Both stocks are 4-5 times the industry average

Both stocks have the characteristics of

:

• Shengtong Energy’s free float is only about 25%[4]
• Fenglong Co., Ltd. also has the feature of a small free float
• Small-cap stocks mean that a small amount of capital can drive sharp price fluctuations, providing a breeding ground for speculation

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Type of Regulatory Measure	Details
Abnormal Trading Monitoring	Took self-regulatory measures against 201 cases of abnormal securities trading
Focused Monitoring	Shengtong Energy and Fenglong Co., Ltd. are under focused monitoring
Major Matter Verification	Conducted verification on 17 major matters of listed companies
Reporting of Case Clues	Reported 1 clue of suspected illegal and irregular cases to the China Securities Regulatory Commission[1][2]

The Shenzhen Stock Exchange clearly stated:

1. Zero Tolerance for Severe Abnormal Fluctuations
   —— Conduct focused monitoring for cases where the cumulative increase deviation exceeds 100%
2. Risk Warning Requirements
   —— Listed companies are required to continuously issue risk warning announcements
3. Suspension and Verification Mechanism
   —— If stock prices rise abnormally further, applications for trading suspension for verification may be made[3][4]

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Risk Type	Specific Performance	Investor Response Strategy
Valuation Bubble Risk	P/E ratio exceeds 40-50x the industry average, overdrafting growth for years to come	Stay away from over-hyped targets
Fundamental Divergence Risk	The company’s core business is unrelated to hot concepts, and performance cannot support the stock price	Focus on the company’s actual business
Trading Risk	Small-cap stocks are easy to manipulate, and sharp rises are often followed by sharp drops	Set strict stop-loss levels and avoid chasing highs
Uncertainty Risk	Uncertainties exist in the approval of acquisition funding sources, share sale exemptions, etc.	Pay attention to risk warnings in announcements
Legal Risk	Regulators have intervened, which may involve insider trading, market manipulation, etc.	Invest compliantly and stay away from market rigging

The trend of

(688585), the top gainer in A-shares in 2025, is highly similar to the two stocks mentioned above[3]:

• Announced “change of control” to DeepBrain Robotics on July 8
• Cumulative increase exceeded 1500% by December 31
• The current price has fallen sharply from the peak, causing heavy losses for investors who chased the highs

1. View the “Change of Control” Concept Rationally
   —— Completion of acquisition does not mean immediate improvement of fundamentals
2. Be Alert to the Warning of “No Involvement in Relevant Business”
   —— The company has clearly stated that it is unrelated to hot concepts
3. Understand the Meaning of “No Backdoor Listing Plan”
   —— No major business changes will occur within 36 months

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1. Nature of Abnormal Fluctuations
   : The skyrocketing of the two stocks is typical concept speculation, severely disconnected from the companies’ fundamentals
2. Clear Regulatory Attitude
   : The Shenzhen Stock Exchange has implemented focused monitoring measures, and investors must attach great importance to regulatory signals
3. Risks Outweigh Opportunities
   : The current price has fully reflected expectations; if expectations are not met, huge losses will be faced

• Closely follow company announcements and regulatory dynamics
• Set strict stop-loss levels
• Exit decisively if a high-volume break of the daily limit signal appears

• Do not chase highs to buy
• Stay away from small-cap stocks with excessive short-term gains
• Focus on high-quality targets with low valuations

• Remember the historical rule that “small-cap stock speculation will eventually end in a mess”
• Adhere to the concept of value investment and stay away from speculative hype

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[1] Sina Finance - Shenzhen Stock Exchange: This week, conducted focused monitoring on “Shengtong Energy” and “Fenglong Co., Ltd.” which have recently experienced severe abnormal fluctuations (https://finance.sina.com.cn/7x24/2026-01-09/doc-inhftipp0410558.shtml)

[2] Eastmoney - Shenzhen Stock Exchange Focused Monitoring Announcement (https://wap.eastmoney.com/a/202601093614434966.html)

[3] The Paper - Skyrocketing Myths Amid the Humanoid Robot Boom: Fenglong Co., Ltd.'s 10 Consecutive Daily Limit-Ups in 10 Days (https://m.thepaper.cn/newsDetail_forward_32342000)

[4] Tencent News - Risk of Small-Cap Stock Speculation is Extreme! Shengtong Energy Issues Another Warning After 11 Consecutive Daily Limit-Ups (https://news.qq.com/rain/a/20251229A01QQH00)

[5] Shandong Finance Report - Still Hits Daily Limit Despite Risk Warning! Shengtong Energy’s 5 Consecutive Daily Limit-Ups (https://news.qq.com/rain/a/20251219A02I0H00)