In-Depth Analysis of Tianlong Group's Abnormal Volatility Incident: A Warning on Concept Hype Risks in A-Shares

Now I will present a systematic and comprehensive analysis report for you.

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Tianlong Group (Stock Code: 300063.SZ) experienced significant abnormal stock price volatility from December 30, 2025 to January 14, 2026. According to the trading rules of the Shenzhen Stock Exchange, the stock’s cumulative closing price increase deviation exceeded 100% within 10 consecutive trading days, and it was identified as

[1][2].

Date	Event	Cumulative Increase
December 30, 2025	Starting point of stock price volatility	Base date
January 8-12, 2026	Cumulative deviation of closing price increase exceeded 30% in 3 consecutive trading days	Triggered abnormal volatility
January 13, 2026	Company issued clarification announcement	93.56%
January 14, 2026	Continuous monitoring	Approximately 94%

The company’s main businesses are internet marketing, forestry chemical industry, and ink chemical industry. Its operating revenues from 2022 to 2024 were RMB 9.633 billion, RMB 8.703 billion, and RMB 7.284 billion respectively, showing a year-on-year downward trend. Its net profit attributable to parent shareholders in 2024 was RMB 65.1702 million[3].

GEO (Generative Engine Optimization) is a new concept proposed with the rise of generative artificial intelligence, referring to optimizing content to make it easier to be retrieved and recommended in generative AI engines[4]. Tianlong Group was listed as a “GEO concept stock” by the market, but the company clearly clarified:

• Regarding GEO Business
  : The company has not engaged in the GEO business as described in the definition, and does not directly engage in AI business[1][5]
• Regarding AI Business
  : At this stage, AI tools are mainly used for the creation of internal advertising creative materials and communication content[5]
• Regarding Impact on Revenue
  :
  No additional revenue has been generated from AI tools, and there is no significant impact on the company’s overall operating conditions
  [5]

According to the Shenzhen Stock Exchange Trading Rules, “severe abnormal volatility” refers to the following four situations[6][7]:

┌─────────────────────────────────────────────────────────────────┐
│                Criteria for Identifying Severe Abnormal Volatility                │
├─────────────────────────────────────────────────────────────────┤
│  1. Main board stocks have 4 consecutive abnormal fluctuations in the same direction within 10 trading days                            │
│     ChiNext stocks have 3 consecutive abnormal fluctuations in the same direction within 10 trading days                          │
│                                                                 │
│  2. The cumulative deviation of the daily closing price change rate within 10 consecutive trading days reaches +100% (-50%)       │
│                                                                 │
│  3. The cumulative deviation of the daily closing price change rate within 30 consecutive trading days reaches +200% (-70%)       │
│                                                                 │
│  4. Other circumstances recognized by the CSRC or the exchange                                 │
└─────────────────────────────────────────────────────────────────┘

Tianlong Group triggered the second situation, i.e., the cumulative deviation of the daily closing price increase rate reached +100% within 10 consecutive trading days.

When severe abnormal volatility occurs in a stock, regulators will activate the following response mechanisms[6][7]:

Listed Company Verification ──→ Abnormal Volatility Announcement ──→ Risk Warning ──→ 
Exchange Monitoring ──→ Account Controls (if necessary)

The Tianlong Group case embodies the typical risk characteristics of concept hype:

Risk Factor	Specific Performance	Severity
No substantial change in fundamentals	Normal production and operation, no major matters	🔴 High
Doubtful concept relevance	No GEO business engaged in, AI only used internally	🔴 High
Zero revenue contribution	No additional revenue from AI tools	🔴 High
Deviation in short-term increase	Significantly higher than the ChiNext Composite Index and industry growth	🟠 Medium-High
High price-earnings ratio	Significantly higher than the industry average	🟠 Medium-High

Recently, multiple similar incidents have occurred in the A-share market, forming a stylized hype path:

Company	Concept	Cumulative Increase	Business Reality	Risk Warning
Tianlong Group	GEO/AI	93.56%	No additional revenue from AI	Clarification announcement
Aerospace Development	Commercial Aerospace	367%	Aerospace business revenue <1%	Severe abnormal volatility
Tianpu Co., Ltd.	AI Chip	718.39%	No substantial fundamental support	Filed for investigation by CSRC
BlueFocus	AI Marketing	150%	Small proportion of AI revenue	Risk warning

These cases reveal a common feature:

[6][8].

Compared with traditional concepts such as commercial aerospace and new energy, the GEO concept has unique risk characteristics[4][9]:

1. Vague Concept Definition
   : As an emerging concept, GEO has unclear boundaries and is prone to generalized hype
2. Difficult to Verify Performance
   : No mature business model and profit path have been formed yet
3. Doubts about Technology Implementation
   : The actual commercial value of AI search optimization remains to be verified
4. High Regulatory Sensitivity
   : Regulators remain highly vigilant against AI concept hype

The occurrence of the Tianlong Group incident and the response of regulators have sent clear signals to the market:

• Listed companies need to timely clarify concept relevance and disclose the essence of their business
• Exchanges strengthen regulatory inquiries into “hot topic chasing” behaviors
• Initiate investigations into information disclosure violations[8]

• Companies that continuously trigger the severe abnormal volatility criteria will face intensive monitoring
• Some investor accounts may be subject to trading restriction measures[6]
• Historical data shows that stock prices often experience significant pullbacks after severe abnormal volatility announcements[6][7]

In the 2025 “World Investor Week” activity, the CSRC system carried out special risk education on AI concept investment, guiding investors to rationally judge the implementation capability and sustainable profitability of AI technology[10].

• A large amount of capital flows into small-cap concept sectors in a short period
• The smaller the sector size, the more severe the price deviation[6]
• Pure concept hype is like a “castle in the air”

Tianlong Group and GEO concept stocks generally exhibit the following:

• Dynamic price-earnings ratio is significantly higher than the industry average (Tianlong Group reaches 311.5 times[4])
• High price-to-book ratio (Tianlong Group reaches 40.53 times[4])
• Stock price is seriously divorced from fundamental support

Some individual stocks have the phenomenon of “controlling abnormal fluctuations”, that is, accurately controlling intraday increases to avoid regulatory red lines[6][7], and this behavior may involve market manipulation.

The Tianlong Group case shows that concepts hyped by the market do not necessarily bring actual business growth, and investors should:

• Verify company announcements, distinguish between concepts and essence
• Focus on revenue contribution, not concept labels
• Beware of valuation bubbles without performance support

Li Daxiao, former chief economist of a securities firm, reminded investors to follow three principles[6]:

• Invest with Surplus Funds
  : Only use idle funds to participate in high-volatility products
• Value Investment
  : Focus on the company’s long-term fundamentals rather than short-term concepts
• Rational Investment
  : Not affected by overheated market sentiment

• Set stop-loss levels to control downside risks
• Diversify investments to avoid concentration on a single concept
• Pay attention to regulatory announcements and adjust investment strategies in a timely manner

The Tianlong Group abnormal volatility incident is a typical case of concept hype risks in the A-share market, with the following warning significance:

1. Concept hype deviating from fundamentals is a major market risk source
   : With no substantial change in fundamentals and zero revenue from AI business, Tianlong Group’s stock price saw a cumulative increase of nearly 100%, which fully shows that concept hype can be completely divorced from the company’s actual value.
2. Regulators maintain a high-pressure stance on concept hype
   : From company clarification announcements to exchange monitoring and CSRC investigation, regulators have formed a complete risk response chain.
3. Investor protection requires two-way efforts
   : In addition to regulatory protection, investors themselves need to establish risk awareness and participate in concept hype prudently.
4. Historical experience shows that concept hype risks will eventually be released
   : Companies such as Longzhou Co., Ltd., Chaojie Co., Ltd., and Shenjian Co., Ltd. all experienced consecutive limit-downs after releasing severe abnormal volatility announcements[6].

• Timely and accurately disclose the essence of concept-related business
• Avoid selective information disclosure
• Proactively prompt investment risks

• Conduct in-depth research on the company’s fundamentals, do not follow the trend blindly
• Pay attention to regulatory announcements and risk warnings
• Establish a scientific investment decision-making framework

• Continuously improve the abnormal volatility monitoring mechanism
• Increase the punishment for “hot topic chasing” behaviors
• Strengthen investor education and protection

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[1] Tianlong Group’s Stock Sees Cumulative Price Deviation Exceed 30% in 3 Consecutive Trading Days - QQ News
[2] Tianlong Group: Abnormal Volatility in Stock Trading - Eastmoney
[3] Tianlong Group’s Stock Sees Cumulative Price Deviation Exceed 30% in 3 Consecutive Trading Days - Radar Finance
[4] GEO Concept Remains Hot, Multiple Companies Intensively Release Announcements to “Cool Down” - The Paper
[5] Tianlong Group with Three Consecutive 20% Upside Limits: No Additional Revenue Generated from AI Tools Currently - Caiwen News
[6] Commercial Aerospace Stocks Trigger “Severe Abnormal Volatility” Warnings Collectively, Multiple Companies Respond that Business Proportion is Low - Jiemian News
[7] Risk Warning on Trading of Multiple Securities - Jiuzhou Securities
[8] “AI Concept” Backfires, Tianpu Co., Ltd.'s Capital Maze is Investigated by CSRC - Sina Finance
[9] GEO Concept Continues to Surge! Risk Warnings are Intensively Released! - Securities Times
[10] CSRC System Organizes 2025 “World Investor Week” Activity - China Securities Regulatory Commission

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Prepared by: Jinling AI Financial Analysis Team
Data Cut-off Date: January 14, 2026