Stock speculation company Tianji Holdings on the mainland violated regulations by prematurely confirming income, leading to false reporting in the 2023 annual report. Starting from July 15th, the company’s stock will be subject to additional risk warnings, with the abbreviation changed to “ST Tianji”. The company and four related responsible persons are facing a total fine of 5.55 million yuan (RMB) for which the recent disclosed number of shareholders exceeded 140,000 households.
According to reports from mainland media on July 14th, Tianji Holdings received a “Notice of Administrative Penalty” issued by the Guangdong Securities Regulatory Bureau. An investigation found that its subsidiary, Changshu Xinte Chemical Co., Ltd., confirmed part of its sales revenue in advance through methods such as self-signing delivery notes, arranging customers to fill out documents in advance, and issuing invoices when selling products to two customers from November to December 2023.
The aforementioned actions resulted in Tianji Holdings falsely inflating its operating income by 13.65 million yuan, operating costs by 6.8054 million yuan, and total profit by 6.8495 million yuan in 2023. The inflated profit accounted for 13.33% of the company’s disclosed profit total that year, leading to false reporting in the 2023 annual report.
The penalty amount proposed in the notice totals 5.55 million yuan. Tianji Holdings faces a warning and a fine of 2 million yuan; the then Chairman and General Manager Wu Xidun, Deputy General Manager Zhou Shuai, and Chairman of Xinte Chemical Shi Jianqing each face fines of 1 million yuan; and the then Chief Financial Officer Yang Zhixuan faces a fine of 550,000 yuan.
On February 11th this year, Tianji Holdings was investigated by the Chinese Communist Party’s Securities Regulatory Commission for suspected illegal information disclosure, and approximately five months later, they received the preliminary notice of penalty. The premature income confirmation incident occurred in 2023, but it wasn’t until 2026 that it entered the stage of proposed penalties. Currently, the relevant documents are still in the form of advance notice, and the final penalty result has yet to be determined.
As a result, Tianji Holdings’ stock was halted for one day on July 14th and resumed trading on July 15th with the abbreviation changed to “ST Tianji”. “ST” is a special identifier implemented by the mainland stock market for listed companies with abnormal risks. The stock code remains 002759, with a daily limit of 10% for price fluctuations.
According to relevant regulations of the Shenzhen Stock Exchange, the company is subject to additional risk warnings this time, but it does not involve significant violations that would result in mandatory delisting.
Tianji Holdings mainly produces lithium battery materials such as lithium hexafluorophosphate, and also operates small household appliances such as electric cookers and electric kettles. The company’s stock price had previously surged significantly, rising from a low of 5.45 yuan in 2024 to a peak of 55.98 yuan, an accumulated increase of about 927%; however, it has since continued to decline, dropping to a low of 19.65 yuan, nearly a 65% decrease from its high point.
On the last trading day before the suspension on July 13th, Tianji Holdings closed at 19.72 yuan, with a total market value of about 9.887 billion yuan. As of June 18th, the number of the company’s shareholders was 148,669 households.
Tianji Holdings also disclosed its semi-annual performance forecast for 2026. The company expects a net profit attributable to shareholders of listed companies of 220 million yuan to 260 million yuan in the first half of the year, compared to a loss of 52.3608 million yuan in the same period last year.
In terms of quarterly changes, the company’s net profit for the first quarter was 197 million yuan. Based on the semi-annual performance forecast and first-quarter data, the net profit for the second quarter is estimated to be only about 23 million yuan to 63 million yuan, a quarter-on-quarter decrease of approximately 68% to 88%.