Recently, mainland Chinese companies have successively announced their 2025 performance forecasts, with many listed companies issuing early warnings due to financial indicators flashing red lights. According to preliminary statistics, since January, several companies including ST Saifei and Tianjian Technology have disclosed stock trading alerts or faced the risk of delisting due to severe insolvency, bankruptcy restructuring, touching the “red line” of delisting risk.
On January 20, Chengdu Tianjian Technology released its performance forecast. The company expects a net loss of 176 million to 250 million yuan for the fiscal year 2025, a decrease of 1196.06% to 1657.73% compared to the same period last year; and anticipates operating income to be -201 million to -141 million yuan.
According to a report by the Shanghai Securities News on the 22nd, Tianjian Technology’s performance “turnaround” will directly trigger the company to reach the composite financial-type delisting “red line.”
The “Shenzhen Stock Exchange Stock Listing Rules” stipulate that if a listed company has a situation where “the audit net profit, net profit, and net profit after deducting non-recurring gains and losses for the most recent fiscal year are negative, and the deducted operating income is less than 300 million yuan,” it will be subject to stock trading with a risk alert (stock symbol prefixed with “*ST”).
Tianjian Technology’s performance is expected to directly touch upon the above indicators. The company attributes the performance “turnaround” to the pricing mechanism, as its main customers are subordinate units of a large military group, with the end-users being specific niche users.
The company previously disclosed in its announcement the risk of performance fluctuations due to differences between provisional product prices and final approved prices. Based on accounting policies, it is estimated that operating income will be reduced by about 260 million yuan, and the attributable net profit to the company’s shareholders is expected to be -210 million yuan.
Once known as the “first stock of photovoltaics,” GCL-Poly Energy Holdings announced on January 13 that it expects a net loss attributable to the owners of the parent company of 450 million to 600 million yuan for the fiscal year 2025; with year-end net assets ranging from -130 million to -68 million yuan, which will trigger stock trading with a delisting risk alert.
Why the decline in performance? The company stated that in 2025, the domestic photovoltaic industry entered a phase of transformation and restructuring. Despite the effectiveness of the industry’s “anti-hollowing” governance, the industry chain prices have gradually bottomed out and rebounded. However, due to the inertia of previous stage-specific structural capacity misalignments, the imbalance between supply and demand continues, leading to the overall industry remaining weak with profitability yet to be restored.
In 2025, the company’s main business of solar cell module products experienced price declines, leading the company to conduct impairment testing on inventory, fixed assets, etc., and make corresponding asset impairment provisions, which significantly impacted the performance for the reporting period.
The stock of the company experienced a cumulative deviation from the closing price on January 14, 15, and 16 of more than 20% over three consecutive trading days. According to relevant regulations of the “Shanghai Stock Exchange Trading Rules,” this falls under abnormal stock market fluctuations.
Moreover, GCL-Poly Energy Holdings faced governance issues. In 2025, due to all of the company’s shares held by the original controlling shareholder being judicially auctioned, the company found itself in a situation with no controlling shareholder or actual controller.
Real estate development company “China Evergrande Group” faced an even larger gap. On January 13, Evergrande announced that its net profit for 2025 is expected to incur a maximum loss of 24 billion yuan, and the net profit excluding non-recurring gains and losses could reach as high as -25 billion yuan, with net assets attributable to the listed company’s shareholders estimated to be in the range of -15 billion to -10 billion yuan.
This indicates that the company is severely insolvent, and its stock may face a delisting risk alert after the annual report disclosure.
Evergrande has been plagued by a debt crisis. The company stated that due to factors such as the pace of real estate project conversions, there was a decrease in real estate project conversions during the reporting period, resulting in a decrease in conversion income and a year-on-year decline in net profit.
On January 8, Evergrande announced that controlling shareholders Huali Group and the actual controller Wang Wenxue were brought to arbitration by Ping An Assets and Ping An Life, claiming up to 6.4 billion yuan in performance compensation and overdue default interest. On the evening of January 15, the company announced that Director Feng Nianyi resigned from the position of non-independent director due to “personal reasons.”
Furthermore, Evergrande stated that the Intermediate People’s Court of Langfang, Hebei Province has accepted the company’s application for reorganization. However, there still exists significant uncertainty regarding the final acceptance of the reorganization application and the success of the restructuring process.
ST Saifei is also facing the dilemma of anticipated performance losses and negative net assets. The company announced on January 20 that it expects a net loss of 720 million to 1.02 billion yuan for 2025, with owners’ equity (net assets) attributable to the listed company in the range of -870 million to -620 million yuan.
The company specifically noted that it is anticipated to have negative net assets at the end of 2025. In accordance with relevant rules of the stock exchange, after the company’s 2025 annual report is disclosed, its stock trading may be subject to a delisting risk alert.
ST Saifei is embroiled in litigation. The company explained that due to lawsuits with Shenzhen ATT Wanneng Technology Co., Ltd., and arbitration judgments, the impact on the 2025 net profit was approximately -718 million yuan, with the exact data to be based on the auditor’s audit.
The third-quarter report of 2025 from ST Hengxin (Shandong Hengxin International Co., Ltd.) showed that during the reporting period, the company’s operating income was 1.02 billion yuan, a decrease of 21.5% year-on-year; attributable net profit was 16.44 million yuan, a decrease of 60.9% year-on-year; non-recurring attributable net profit was 5.99 million yuan, a decrease of 85.0% year-on-year; net cash flow from operations was 91.4 million yuan, a decrease of 24.1% year-on-year; and EPS (fully diluted) was 0.0383 yuan.
Additionally, the company had 406 million yuan of funds occupied by the controlling shareholder and related parties for non-operational purposes, which have not been returned to date, leading to the company facing a potential delisting risk alert.
On the evening of January 20, ST Hengxin issued an announcement concerning the controlling shareholder and indirectly controlling shareholder being adjudged for bankruptcy restructuring by the court.
Currently, ST Hengxin is in multiple crises, as all shares held by the controlling shareholder have been frozen by the judiciary. The subsequent equity may face adjustments, and there is uncertainty about changes in the company’s control rights. Furthermore, if the occupied funds are not collected on time, the company’s stock may face severe consequences such as suspension, delisting risk alerts, or even termination of listing.
Several other listed companies are in distress as well, such as ST Xindongli, *ST Mubang, and *ST Lingda, all of which have disclosed progress toward potential or already implemented delisting risk alerts.