Tianji Shares Under Investigation by the CSRC! Suspected of Information Disclosure Violations; the company also "self-reported" that a 30 million yuan external aid fund has expired

On the evening of February 11, Tianji Co., Ltd. (SZ002759, stock price 43.96 yuan, market capitalization 22.041 billion yuan) announced that it is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws and regulations. The company stated that this matter will not have a significant impact on normal production and business activities.

It is worth noting that just about a month ago, Tianji Co., Ltd. was subject to corrective measures by the Guangdong Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as Guangdong CSRC) due to issues such as irregular goodwill impairment testing, inaccurate financial accounting, and non-standard information disclosure. The company’s chairman Wu Xidun, CFO Yang Zhixuan, and Secretary Zheng Wenlong received warning letters; the Shenzhen Stock Exchange issued regulatory letters to the company and the aforementioned responsible personnel.

On the evening of February 11, Tianji Co., Ltd. also simultaneously released a correction announcement regarding previous errors. Based on the administrative regulatory decision letter from the Guangdong CSRC and the regulatory letter from the Shenzhen Stock Exchange, the company and relevant responsible personnel conducted self-inspections and rectifications, correcting earlier errors and retrospectively adjusting the financial statements and related notes for 2023, 2024, and the third quarter of 2025.

The Daily Economic News reporter noted that the company also confirmed an external financial assistance of 30 million yuan, which has now matured.

Tianji Co., Ltd. Under Investigation by the CSRC

On the evening of February 11, Tianji Co., Ltd. announced that it received a “Notice of Filing” from the China Securities Regulatory Commission on the same day, indicating that the company is suspected of violating laws and regulations related to information disclosure, and the CSRC has decided to file a case against the company.

Tianji Co., Ltd. stated that all of its production and business activities are currently proceeding normally. During the investigation, the company will actively cooperate with the CSRC and strictly fulfill its information disclosure obligations in accordance with relevant regulations and supervisory requirements.

In fact, less than a month before this case was filed, regulatory authorities had already issued warning and regulatory letters regarding Tianji Co., Ltd.’s violations. On January 16, Tianji announced that due to irregularities in goodwill impairment testing, inaccurate financial accounting, and non-standard information disclosure, the Guangdong CSRC decided to impose administrative regulatory measures requiring correction and issued warning letters to Wu Xidun, Yang Zhixuan, and Zheng Wenlong.

Based on these violations, the Shenzhen Stock Exchange also issued regulatory letters to the company and the three senior executives.

Additional Confirmation of a 30 Million Yuan External Financial Assistance

On the same day the CSRC case was announced, Tianji Co., Ltd. also released announcements titled “Correction and Retrospective Adjustment of Previous Accounting Errors” and “Supplementary Confirmation of Financial Assistance Provided by the Company,” among others, to rectify financial data related to the previous violations.

The company retrospectively adjusted its financial statements for 2023, 2024, and the third quarter of 2025. After correction, Tianji’s net profit attributable to the parent in 2023 was adjusted from 36.641 million yuan to 35.095 million yuan; the total comprehensive income attributable to the parent for 2024 was adjusted from -1.361 billion yuan to -1.351 billion yuan; these retrospective adjustments did not affect the consolidated profit and loss statement for the third quarter of 2025.

The Daily Economic News reporter also noted that Tianji Co., Ltd. confirmed an external financial assistance of 30 million yuan. The company stated that in September 2023, it signed an agreement with Ningxia Yongli New Materials Co., Ltd. (hereinafter referred to as Ningxia Yongli) and paid an advance of 30 million yuan. The agreement stipulated that before the “100,000-ton electronic-grade phosphorus pentachloride project” of Ningxia Yongli was put into production or before reaching full production, the advance would not be used to offset payments. After the project officially started production, both parties would negotiate to convert the advance into an investment in Ningxia Yongli; if negotiations failed, it would be used to gradually offset payments.

Subsequently, due to delays in Ningxia Yongli’s phosphorus pentachloride project and changes in market conditions, the investment did not proceed, and the advance remained unconverted into an investment. According to the principle of substance over form, Tianji Co., Ltd. now confirms this matter as financial assistance. The announcement states that this 30 million yuan financial assistance provided to entities outside the scope of the consolidated financial statements has matured. The company said it will recover the funds as soon as possible through negotiations, litigation, and other means.

The reporter learned that on January 16, 2024, the Guangdong CSRC mentioned in its administrative regulatory decision that Tianji Co., Ltd. provided financial assistance to non-related parties from September 2023 to August 2025 but did not follow the required review procedures and information disclosure obligations.

According to Tianji’s 2025 annual performance forecast, benefiting from improved market conditions for lithium hexafluorophosphate and sodium hypophosphite, the company expects to turn a profit after losses last year.