Tianpu Stock (605255) will undergo its fourth trading suspension for abnormal price movements. Since late August, the stock has surged over 450%, with a 35% rally in the past four trading days alone.

On November 27, Tianpu Stock announced that due to significant trading risks and a severe deviation from fundamentals, trading will be suspended for review to protect investor interests. The exact resumption date remains undetermined.

From August 22 to November 27, the stock soared over 450%, including a 35% jump from November 24 to 27. Earlier, it recorded 15 consecutive daily limit-ups between August 22 and September 23. Despite three prior suspensions, the stock continued to hit upper limits after resumption.

The surge was initially triggered by Zhonghao Xinying’s acquisition and capital injection plan, which would make its controller Tianpu’s new majority shareholder. Zhonghao Xinying specializes in high-performance AI chips and computing clusters.

Tianpu has repeatedly clarified that Zhonghao Xinying’s separate IPO plans are unrelated to the acquisition, with no asset injection or major business restructuring planned within 12 months. Zhonghao Xinying has now initiated its independent IPO process, entering the shareholding reform stage.

Additional risks highlighted include: - A PE ratio of 605.87x, far exceeding the auto parts industry average of 29.71x. - Limited public float (25%), raising speculation concerns.

Recent trading data shows dispersed buying interest. Despite two limit-ups on November 25-26 with ¥1.2 billion turnover, top five buyers netted only ¥57.18 million.

Zhonghao Xinying’s ongoing tender offer for Tianpu shares, unaffected by the suspension, will close on December 19. Currently, four accounts have pre-accepted the offer for 3,400 shares. Tianpu warns that accepting the ¥23.98/share offer price versus the last close of ¥147/share would mean a ¥123.02/share loss.