Analysis of the Contribution of Tiansheng New Materials (300169)'s RMB 350 Million Land Expropriation Compensation to Net Asset Positivity

On the evening of January 8, 2026, Tiansheng New Materials announced that Wu Haizhou, the company’s largest shareholder, is planning a major matter that may lead to a change in control, and the company’s shares have been suspended from trading since January 9 [1]. Earlier, the company signed the “Agreement on Expropriation and Compensation of Houses on State-Owned Land” with the Housing and Urban-Rural Construction Bureau of Tianning District, Changzhou City. The total expropriated building area is 66,188.47 square meters, the land use area is 122,575.7 square meters, and the total compensation amount reaches

[2].

According to the 2025 third quarterly report, Tiansheng New Materials is facing severe financial challenges:

Financial Indicator	Value	YoY Change
Net Assets	-RMB 30.6209 million	Insolvent
Asset-Liability Ratio	104.52%	Continued to Rise
Operating Revenue	RMB 334 million	-16.71%
Net Profit Attributable to Parent Companies	-RMB 83.1151 million	Plunged 1093.28% YoY

The company has suffered losses for six consecutive years (2019-2024), with cumulative losses exceeding RMB 1.1 billion, and its operating revenue has dropped from over RMB 900 million in 2018 to RMB 531 million in 2024 [3].

According to the planned use of the compensation:

[2].

Item	Amount (RMB 10,000)
Current Net Assets	-3,062.09
Land Expropriation Compensation	35,000
Estimated Relocation Expenses	Approximately 3,000-5,000 (estimated)
Remaining Disposable Amount	Approximately 30,000-32,000
Net Assets After Contribution	+26,938 to +28,938

In addition to the land expropriation compensation, Tiansheng New Materials has also improved its financial situation through capital operations:

1. Share Transfer
   : Sun Jian and Lü Zewei have agreed to transfer 20,489,500 shares to Beijing Rongsheng Xintai Technology Development Partnership, at a price of RMB 6.39 per share
2. Private Placement
   : Issue 50 million shares to Beijing Rongsheng Zhirui Technology Development Partnership at an issue price of RMB 5.06 per share, raising no more than RMB 253 million, which will be used to repay bank loans and supplement working capital
3. Change in Control
   : After the completion of the transaction, Rongsheng Zhirui will become the controlling shareholder, and the actual controller Wei Lidong will become the new actual controller of the listed company [4]

Although the land expropriation compensation and private placement plan can improve the net asset situation in the short term, the company still faces the following challenges:

• Sustainability of Operations in Doubt
  : The company has suffered losses for six consecutive years, and its core business lacks competitiveness
• Litigation Risk
  : It needs to pay RMB 43.65 million in capital contributions and overdue interest to China Railway Track
• Objection from State-Owned Directors
  : The director appointed by Qingdao Ronghai State-Owned Investment Group voted against the private placement plan, alleging insufficient disclosure and hasty decision-making

Combined with the RMB 253 million raised through the private placement plan, the company is expected to achieve positive net assets before the disclosure of its 2025 annual report, thereby avoiding the delisting risk warning due to negative net assets.

However, investors need to pay attention to whether the company can resolve the fundamental issue of continuous losses in its core business, as well as whether the strategic plan after the change in control can reshape the company’s competitiveness.

[1] Sohu - 《Stock Suspended from Trading Starting January 9 as Largest Shareholder Plans Major Matter That May Change Control, 30,000 Shareholders Pin Hopes on Last-ditch Effort》(https://q.stock.sohu.com/cn/news.html?textId=966784471&type=120&tab=200&code=cn_300169&date=2026/0110)

[2] Securities Times Network - 《Tiansheng New Materials: Signs House Expropriation and Compensation Agreement with Total Compensation of RMB 350 Million》(https://stcn.com/article/detail/1512116.html)

[3] DoNews - 《Tiansheng New Materials’ Private Placement Sparks Controversy: New Actual Controller Takes Control at Low Price, State-owned Director Votes Against》(https://www.donews.com/news/detail/4/6378064.html)

[4] Eastmoney - 《Troubled and Likely to Underperform! After Qingdao Licang State-owned Assets Exit as Largest Shareholder, It Votes Against Again》(https://finance.eastmoney.com/a/202601163621693667.html)