Delisting Risk Assessment Report for Tiansheng New Materials (300169.SZ) as Net Assets Turn Negative

I have now obtained sufficient information, let me conduct a comprehensive delisting risk assessment and analysis for you.

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Based on the latest disclosed data, the owners’ equity attributable to shareholders of Tiansheng New Materials as of September 30, 2025 is

, which has triggered the delisting risk warning criteria for negative net assets [1][2]. According to Item (2) of Article 10.3.1 of the Shenzhen Stock Exchange GEM Stock Listing Rules (Revised 2025), if the audited net assets in the 2025 annual report remain negative, the company’s shares will be subject to “Delisting Risk Warning” (*ST) [1][2].

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The company’s operating data for the first three quarters of 2025 has deteriorated across the board:

Indicator	Value	YoY Change
Net Profit Attributable to Shareholders of Listed Company	-RMB 83.1151 million	Plunged 1,093.28%
Operating Revenue	RMB 334 million	Decreased 16.71%
Financial Expenses	RMB 27.8547 million	Heavy Burden
Asset Impairment Loss	RMB 40.8835 million	Increased Provisioning
Asset-Liability Ratio	104.52%	Insolvent

The company has entered its

, and its operating difficulties continue to deepen [3].

• P/E Ratio
  : -15.39x (Loss-making Status)
• P/B Ratio
  : -75.48x (Direct Reflection of Negative Net Assets) [4]
• ROE (Return on Equity)
  : -944.37% (Severely Insolvent) [4]
• Net Profit Margin
  : -32.49%
• Operating Profit Margin
  : -33.18%

Solvency Indicator	Value	Risk Assessment
Current Ratio	0.40	Far below 1.0, extremely weak solvency
Quick Ratio	0.32	Huge short-term solvency pressure
Free Cash Flow	-RMB 88.26 million	Continuous Cash Drain

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Item	Details
Amount Involved	RMB 43.65 million + Overdue Interest
Cause of Action	Shareholder Capital Contribution Dispute
Progress	The company has filed an appeal, and the second instance has not yet been heard
Impact	Accounts for 20.49% of the company’s net assets [5]

This litigation stems from a 2019 capital increase dispute, where China Railway Track demands Tiansheng New Materials to make up the underpaid capital contribution [5].

In addition to the above litigation, the company’s newly added cumulative litigation involves approximately

, mainly including:

• Nanjing Evergreen Environmental Protection Engineering Contract Dispute (RMB 3.5234 million)
• Beijing Urban Construction Design Construction Engineering Contract Dispute (RMB 7.2901 million) [5]

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┌─────────────────────────────────────────────────────────────┐
│  Q3 2025  │  Net Assets Turn Negative for the First Time (-RMB 30.62 million)  │ ⚠️ Risk Warning  │
├─────────────────────────────────────────────────────────────┤
│  2025.12.31│  Deadline for Audited Net Assets in Annual Report         │ ⏰ Key Node  │
├─────────────────────────────────────────────────────────────┤
│  2026.03.31│  Scheduled Annual Report Disclosure Date               │ 📋 Fate-determining  │
└─────────────────────────────────────────────────────────────┘

: If the audited net assets in the 2025 annual report remain negative, the company’s shares will be subject to “Delisting Risk Warning” (*ST) [1][2].

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Item	Details
Expropriated Area	66,188.47 square meters
Land Use Area	122,575.7 square meters
Total Compensation Amount	RMB 350 million
Expected Completion Time	Before December 31, 2025

If this matter can be successfully completed, it will

, which is a key measure to avoid delisting [1][3].

• Sale of 100% Equity of Xingyue Capital
• Spin-off of Non-core Businesses/Loss-making Subsidiaries

According to the latest announcement in January 2026, the company is advancing a change of control:

Item	Details
Potential Acquirer	Rongsheng Zhirui (Private Equity Fund)
Transaction Method	Issuance of Shares to Specific Objects
Fundraising Amount	No More Than RMB 253 million
Expected Resumption of Trading	January 16, 2026

If the change of control is successful, it will introduce new capital and resources, which will help improve the company’s financial situation [3][6].

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It is worth noting that there are obvious differences within the company’s Board of Directors:

• Director Han Qingjun
  voted against all proposals, including the non-public share offering
• Qingdao Licang State-owned Assets
  (former largest shareholder) voted against again after exiting
• The company has received
  4 regulatory documents
  in the past five years due to issues such as
  illegal information disclosure and fund occupation
  [6]

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Risk Dimension	Risk Level	Explanation
Delisting Risk	🔴 Extremely High	Negative net assets, delisting risk warning is imminent
Operating Risk	🔴 Extremely High	6 consecutive years of losses, continuous decline in operating revenue
Litigation Risk	🟠 High	RMB 43.65 million litigation + multiple new litigations
Liquidity Risk	🔴 Extremely High	Current ratio is only 0.4, severely insolvent
Change of Control Risk	🟡 Medium	Uncertainty exists, with differences in the board of directors

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• Net assets turn positive, delisting risk is lifted
• The company gets a second chance, and the stock price may rebound

• Net assets barely turn positive, delisting risk is lifted
• However, the operating difficulties have not been fundamentally resolved, and long-term observation is still needed

• Net assets in the annual report remain negative, triggering *ST delisting risk warning
• The stock price may face a sharp decline

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Tiansheng New Materials is currently on the

, and the negative net assets are a concentrated manifestation of the company’s years of operating failures. The land expropriation compensation (RMB 350 million) and the change of control have become the last lifeline for the company’s “shell preservation” efforts [1][3].

:

• ⚠️
  Extremely High Risk
  , not recommended to participate with heavy positions
• Pay close attention to the status of compensation payment before December 31, 2025
• Pay attention to the specific implementation of the change of control
• The period before the annual report disclosure (March 31, 2026) is a key observation period

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[1] Sina Finance - Tiansheng New Materials: Net Assets Negative as of Q3 2025 (https://finance.sina.com.cn/jjxw/2025-10-31/doc-infvuxsr3961092.shtml)

[2] NetEase News - Tiansheng New Materials (300169.SZ): Net Assets Negative as of Q3 2025 (https://www.163.com/dy/article/KD7OP6RO05198ETO.html)

[3] Sohu Stocks - Planning for Change of Control, Suspension of Trading Starting Tomorrow (https://q.stock.sohu.com/cn/news.html?textId=966784471&type=120&tab=200&code=cn_300169&date=2026/0110)

[4] Jinling API Data - Company Financial Analysis

[5] CFi.net.cn - [Litigation] Tiansheng New Materials (300169): Progress of Major Litigation and New Cumulative Litigations, Arbitrations (https://www.cfi.net.cn/p20260115003255.html)

[6] Moomoo - Latest News on Tiansheng New Materials (300169) (https://www.moomoo.com/hans/stock/300169-SZ/news)

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