Impact Assessment of the Detention of the Actual Controller of Tianyuan Intelligence (603273)

Based on the collected data and relevant information, I now provide you with a

.

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On January 18, 2026, Tianyuan Intelligence (Stock Code: 603273.SH) issued an announcement stating that Wu Yizhong, the company’s actual controller, chairman and general manager, has been placed under detention and opened for investigation by the Jiangsu Provincial Supervisory Commission. As of the date of the announcement, the company has not been required to assist in the investigation [1][2].

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Based on historical data of similar cases, the impact of the detention of an actual controller on stock prices usually follows the following pattern:

Time Node	Expected Stock Price Change	Explanation
1-3 trading days after the announcement	-10% to -20%	Panic selling, concentrated release of negative news
One week later	-8% to -15%	Market gradually digests the news, information becomes clearer
One month later	-5% to -10%	Depends on the company’s response and event development
Three months later	-3% to -8%	If the company’s operations remain stable, valuation will gradually recover

According to data from King & Wood Mallesons’ 2025 Annual Report on Criminal Crimes Concerning Listed Companies, a total of 121 directors, supervisors, senior executives, and actual controllers of listed companies or their affiliated companies were placed under detention in 2025 [3]. Historical data shows:

• Short-term impact
  : The stock price fell by an average of
  12%-15%
  within 1 week after similar events occurred
• Mid-term recovery
  : The decline narrowed to
  6%-10%
  after 1 month
• Recovery cycle
  : If the company’s operations are not materially affected, the stock price will gradually stabilize after 3-6 months

: During 2024-2025, after the detention of actual controllers of multiple listed companies, the average stock price decline reached within 3 trading days after the announcement [3].

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Financial Indicator	Tianyuan Intelligence	Industry Level	Assessment
Price-to-Earnings Ratio (P/E)	138.00x	~25-35x	Significantly higher than the industry, overvalued
Price-to-Book Ratio (P/B)	5.04x	~2-3x	Overvalued
Return on Equity (ROE)	3.67%	~8-12%	Weak profitability
Net Profit Margin	5.63%	~6-8%	Below industry average
Current Ratio	2.52	>1.5	Sufficient liquidity
Quick Ratio	2.09	>1.0	Strong short-term solvency

:

• ✅
  Strengths
  : Strong liquidity and short-term solvency, controllable financial risks
• ⚠️
  Weaknesses
  : High valuation level (PE 138x far exceeds the industry average), weak profitability
• ⚠️
  Risks
  : High valuation means the market has high growth expectations for the company, and any negative news may be amplified

Tianyuan Intelligence has shown a volatile upward trend recently:

• 1-month increase
  : +5.94%
• 3-month increase
  : +15.00%
• 6-month increase
  : +13.67%
• YTD performance
  : -1.24%
• 52-week range
  : RMB 13.38 - 23.98

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According to the announcement, the company has taken the following response measures [1][2]:

1. ✅ Proper arrangements have been made for relevant work
2. ✅ Other directors and senior executives of the company are performing their duties normally
3. ✅ The company’s control right has not changed
4. ✅ The board of directors is operating normally
5. ✅ Production, operation and management are proceeding normally

Risk Dimension	Impact Level	Specific Performance
Strategic Decision-making	High	The detention of the chairman and general manager may affect the control of strategic direction
Daily Operations	Medium-Low	Work arrangements have been made, and other senior executives are performing their duties normally
Customer Relationships	Medium	Damage to business reputation, some customers may re-evaluate cooperation
Financing Capacity	Medium-High	Bank credit lines and bond issuances may be negatively affected
Supply Chain	Low	Relationships with major suppliers are relatively stable
Talent Team	Medium	The stability of the core team may be impacted

Tianyuan Intelligence belongs to the

industry, which rose by today, ranking among the top in the industry gainers list [4]. The overall positive trend of the industry may provide certain support for Tianyuan Intelligence’s stock price, but major negative news of a single company often outweighs the industry beta effect.

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Scenario	Probability	Trigger Condition	Expected Stock Performance
Scenario 1: Positive	25%	The investigation only involves the individual and is unrelated to the company; the company’s operations are stable	Rebound quickly after a short-term decline, recover within 1 month
Scenario 2: Neutral	45%	The investigation continues but no new negative news emerges; operations are basically normal	Short-term pressure, mid-term consolidation and bottoming
Scenario 3: Negative	30%	The investigation expands to the company; involves financial or compliance issues	Continuous decline, may trigger fundamental revaluation

1. Follow-up announcements
   : Whether the investigation involves the company
2. Regulatory trends
   : Whether the Jiangsu Provincial Supervisory Commission conducts further investigations
3. Performance
   : 2026 Q1 operating data
4. Institutional holdings
   : Whether institutional investors reduce their holdings on a large scale
5. Pledge situation
   : Whether the actual controller’s equity pledge faces risks

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Risk Type	Rating	Explanation
Stock Price Volatility Risk	★★★★★	Negative news may lead to significant decline
Liquidity Risk	★★★☆☆	Trading volume increases but long-short game may occur
Corporate Governance Risk	★★★★☆	Absence of the actual controller may affect decision-making efficiency
Fundamental Risk	★★★☆☆	Need to observe whether it affects the company’s operations

:

• Evaluate the position ratio and risk tolerance
• Pay attention to follow-up announcements to distinguish between personal issues and company-related issues
• Set stop-loss levels to control downward risks
• Avoid panic selling, wait for the market to digest the initial impact

:

• It is recommended to
  hold off on investment (wait-and-see)
  mainly, wait for more information to become clear
• If intending to bottom-fish, strictly control position size and stop-loss levels
• Focus on the company’s subsequent operating data and announcements

⚠️

: According to the Supervision Law, the maximum detention period can reach 14 months [3], and the incident may remain unresolved for a long time

⚠️

: If the investigation involves the company, it may face:

• Administrative penalties (such as fines, market access bans)
• Criminal liability (unit crimes)
• Civil compensation (investor lawsuits)

⚠️

: The current PE 138x is significantly overvalued. If the market lowers profit expectations, a ‘Davis Double Kill’ may occur

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The detention of Tianyuan Intelligence’s actual controller is a

, which will exert significant pressure on the stock price in the short term. Based on historical cases, it is expected that the stock price may fall by within 1 week after the announcement. The mid-term performance will depend on:

1. Whether the investigation is limited to the individual level
2. Whether the company’s operations can remain normal
3. The stability of institutional investors’ shareholdings
4. Whether there is new negative information in the follow-up

: . Investors with higher risk appetite may choose to participate after the initial negative impact is released, but must strictly set stop-loss levels; risk-averse investors are recommended to .

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[1] Sina Finance - Wu Yizhong, Actual Controller, Chairman and General Manager of Tianyuan Intelligence, Placed Under Detention (2026-01-18)
https://finance.sina.com.cn/jjxw/2026-01-18/doc-inhhthyv8807065.shtml

[2] Jinling AI - Tianyuan Intelligence’s Company Announcements and Real-time Market Data
Data Source: Jinling API

[3] King & Wood Mallesons - Annual Report on Criminal Crimes Concerning Listed Companies in China (2025)
https://www.kwm.com/cn/zh/insights/latest-thinking/annual-report-on-criminal-crimes-concerning-listed-companies-in-china-2025.html

[4] Jinling AI - Market Industry Sector Performance Data
Data Source: Jinling API