In-Depth Analysis of the Root Causes of Sustained Revenue Decline at Tiansheng New Materials (300169.SZ)

Based on the collected data and analysis, here is a systematic analysis report on the root causes of the sustained revenue decline at Tiansheng New Materials.

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Tiansheng New Materials (Changzhou Tiansheng New Materials Group Co., Ltd.) was founded in 1998 and listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in January 2011. It is an enterprise specialized in the R&D, production, and sales of polymer foam materials[1]. The company’s main products include flexible foam materials (EVA, SBR, CR, etc.) and structural foam materials (PVC foam), which are widely used in sports goods, home appliances, precision instruments, consumer electronics, automobiles, ships and yachts, and wind turbine blades, among other fields[2].

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Time Period	Revenue (100 Million Yuan)	YoY Change	Cumulative Decline
2018	~9.0	-	Baseline
2020	7.85	-	-12.8%
2021	7.12	-9.31%	-20.9%
2022	6.58	-7.58%	-26.9%
2023	5.89	-10.49%	-34.6%
2024	5.31	-9.85%	-41.0%
First 3Q 2025	3.34	-16.71%*	Continued Deterioration

*YoY data for the first three quarters of 2025

From the data analysis, it can be seen that Tiansheng New Materials’ revenue dropped from approximately 900 million yuan in 2018 to 531 million yuan in 2024, with a

, and an average annual decline rate of approximately 9.31%[1][3].

The net profit performance of Tiansheng New Materials is even more severe:

• 6 consecutive years of losses from 2019 to 2024
  , with cumulative losses exceeding 1.1 billion yuan
• Loss of 65 million yuan in 2020 → loss of 312 million yuan in 2024, with the loss scale expanding nearly 5 times
• Net profit attributable to parent shareholders in the first three quarters of 2025 was a loss of 83.1151 million yuan, plummeting 1093.28% YoY

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Tiansheng New Materials’

; in 2009, it became the first domestic enterprise to achieve mass production of polymer structural foam materials, breaking the monopoly of Switzerland’s AIREX and Sweden’s DIAB[2]. However, this business has seen a severe decline in recent years:

• Sharp reduction in production and sales
  : Since 2018, the company has no longer separately disclosed sales revenue, costs, and gross profit margin data for PVC structural foam
• Significant reduction in applications in wind turbine blades
  : Structural foam materials are mainly used as core materials for wind turbine blades, but the company’s market share in this field has been significantly eroded by competitors
• Rise of competitors
  : Enterprises such as Vantage Specialty Materials (Weisai New Materials) have rapidly expanded in the PVC/PET foam sector, maintaining a gross profit margin of over 30%, while Tiansheng New Materials’ products have been forced to shift to niche markets such as ships and yachts[2]

Flexible foam materials are the company’s current main revenue source, but there are significant structural issues in this sector:

• Low industry entry barriers
  : There are numerous flexible foam material manufacturers, and the market is in a state of full competition
• Limited technical content
  : Products are mainly used in wrist/ knee braces, wetsuits, seals, thermal insulation and sound insulation materials, etc., with low technical thresholds
• Sustained pressure on gross profit margin
  : The gross profit margin of flexible foam materials has dropped from around 20% in the early period to approximately 8.3% in 2024

The main downstream application of structural foam materials is wind turbine blades, and cyclical fluctuations in the wind power industry directly affect the company’s performance:

• After the wind power “rush installation wave” in 2020-2021, the industry entered an adjustment period, with new installed capacity declining
• Cost reduction pressure in wind power equipment has been transmitted upstream, compressing the profit margins of foam material suppliers
• The concentration of main engine manufacturers has increased, enhancing their bargaining power and leading to more severe price squeezing on suppliers

The main raw materials for polymer foam materials (PVC, PE, EVA, etc.) are all petrochemical products, and fluctuations in crude oil prices directly affect costs[2]:

• Raw material costs account for a high proportion of product costs, and there is a time lag in price transmission
• The company’s operating costs (labor, transportation, energy) in the Yangtze River Delta region are already at a high level
• Cost increases cannot be effectively transmitted downstream, eroding gross profit margins

Financial Indicator	2020	2024	Change
Asset-Liability Ratio	64.26%	94.16%	+29.9pct
Current Ratio	-	0.40	Severely Low
Quick Ratio	-	0.32	Severely Low
Gross Profit Margin	22.5%	8.3%	-14.2pct

As of the end of the third quarter of 2025, the company’s asset-liability ratio has reached

, putting it in an insolvent state[1][3]. High financial leverage not only increases the burden of financial expenses but also severely restricts the company’s operational flexibility and risk resistance capability.

Against the backdrop of sustained deterioration in its main business, Tiansheng New Materials has frequently pinned its hopes on capital operations for "self-rescue"[4]:

• 2014
  : Major shareholders planned to transfer equity to PE institutions, which was questioned by the market as "shell rental listing", and ultimately fell through after exchange intervention
• 2016
  : A restructuring transaction was rejected due to the illegal signing of a "side agreement"
• January 2026
  : The company again planned a change in control and a private placement, which sparked controversy as the new controlling shareholder took over at a low price, with a state-owned director casting a dissenting vote

Such "capital games" have not only failed to improve the operating fundamentals, but have instead consumed a large amount of management energy and resources.

The company’s management has undergone frequent changes. From December 2023 to September 2024, Chairman Wu Haizhou also served as the Chief Financial Officer[1], reflecting the company’s shortcomings in talent reserve and echelon construction.

In the face of intensified industry competition and changes in downstream demand, Tiansheng New Materials’ response strategies have obvious shortcomings:

• Slow product upgrading
  : Failed to timely extend to higher-performance product lines such as PET foam
• Ineffective expansion of application fields
  : Lack of effective layout in emerging application fields such as new energy vehicles and rail transit
• Single customer structure
  : High dependence on major customers, lack of diversified revenue sources

The polymer foam material industry is a technology-intensive industry that requires sustained R&D investment to maintain technological leadership. However, under operational pressure, the company’s R&D investment ratio has continued to decline, leading to:

• Slow progress in new product development
• Gradual lag of existing product technical indicators behind competitors
• Loss of technical talent

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The root causes of Tiansheng New Materials’ sustained revenue decline can be summarized as the following

effect:

• Cyclical adjustment in the wind power industry leads to decreased demand for structural foam materials
• Intensified competition in the flexible foam material industry leads to sustained pressure on gross profit margins
• Fluctuations in raw material prices increase the difficulty of cost control

• Loss of core product competitiveness, with market share eroded
• Asset-liability ratio exceeds 100%, with severe liquidity strain
• Years of losses consume net assets

• Frequent capital operations divert operational energy
• Transformation and upgrading of the main business is stagnant
• Insufficient management stability affects strategy execution

According to the latest announcement, Tiansheng New Materials is planning a change in control, with the new controlling shareholder intending to take over via a private placement[3][4]. However, considering:

1. The new controlling shareholder (Rongsheng Zhirui) was established only 8 days ago and lacks industrial background
2. The private placement price is a 20% discount to the agreement transfer price, raising questions about pricing fairness
3. A state-owned director explicitly opposes this transaction
4. The company’s fundamentals continue to deteriorate

. Investors need to closely monitor the progress of the control change and subsequent business restructuring plans. If the new controlling shareholder cannot bring effective industrial resources and strategic transformation, Tiansheng New Materials may face greater operational pressure or even delisting risk.

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[1] Shenzhen Business Daily · Duchuang Client - "Suspension Starting Tomorrow! Tiansheng New Materials’ Control May Change, 6 Consecutive Years of Losses, Asset-Liability Ratio Approaches 105%" (https://www.sznews.com.cn/content/2026-01/08/content_25306564.htm)

[2] Prospectus of Baoding Vantage Specialty Materials Technology Co., Ltd. - Industry Competition Pattern Analysis (https://pdf.dfcfw.com/pdf/H2_AN202401051616649026_1.pdf)

[3] DoNews - "Tiansheng New Materials’ Proposed Private Placement Sparks Controversy, New Controlling Shareholder Takes Over at Low Price as State-Owned Director Votes Against" (https://www.donews.com/news/detail/4/6378064.html)

[4] Sina Finance - "Can Capital Operations Save Tiansheng New Materials’ Operating Fundamentals? The ‘Private Placement Shell Preservation’ Game Should Stop" (https://finance.sina.com.cn/jjxw/2026-01-17/doc-inhhrqrr9534284.shtml)

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Report Generation Date: January 19, 2026
Data Sources: Jinling AI Securities API Data, Organized Public Market Information