Investor Claims Underway as Tianyi Shangjia Remains Under Regulatory Investigation

Deep News
Aug 19

Investors who suffered losses from Tianyi Shangjia (referred to as *ST Tianyi (rights protection), 688033) can now register for compensation claims. On May 29, 2026, the company announced that it had been placed under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws. Lawyer Liu Peng from Shanghai Luzi Law Firm noted that under the Securities Law and relevant judicial interpretations, listed companies that cause investor losses due to disclosure violations should bear civil liability. Although the announcement was brief, it masks a series of governance crises behind the company.

The current claim conditions are two-fold, and investors meeting either one can register: 1. Purchased shares between March 13, 2024 and March 14, 2024, and sold or still held them after March 15, 2024, incurring losses; 2. Purchased shares before May 29, 2026 (including that day), and sold or still held them after May 30, 2026, incurring losses. The legal team is already preparing lawsuit materials and has received a large number of investor registrations.

Where to Begin

On May 28, *ST Tianyi disclosed that funds from a subsidiary's raised capital special account had been judicially deducted, while also flagging multiple risks including delisting and litigation. The company faces extremely poor financial conditions and operational difficulties. In terms of performance, the net loss attributable to parent shareholders in 2025 reached a staggering 2.235 billion yuan. Beyond continued losses, the 2025 annual report was issued with a "disclaimer of opinion" by auditors, and internal control received an "adverse opinion," directly triggering the delisting risk warning (*ST).

Why the Alarm Bells Are Ringing

Even more striking is the severity of its cash flow strain. On the evening of August 14, *ST Tianyi disclosed its earnings forecast for the first half of 2026, projecting revenue of 210 million to 255 million yuan, down 39.71%-50.35% year-on-year; net losses attributable to parent shareholders of 150 million to 178 million yuan, compared to a loss of 209 million yuan in the same period last year; and non-GAAP net losses of 140 million to 168 million yuan, versus a loss of 225 million yuan previously. Shrinking main business, massive losses, risk of unfinished projects, and frozen account funds indicate that the company's internal governance can no longer support its sprawling business landscape.

It is worth noting that the company has been applied for pre-reorganization. Although the Beijing First Intermediate People's Court has decided to initiate the pre-reorganization process, this does not mean the company has entered formal reorganization. Pre-reorganization is a procedure before the court formally accepts reorganization, and its success remains uncertain. For the majority of small and medium shareholders, the most direct impact is the stock price collapse and the start of rights protection. Affected investors are advised to participate in claims as early as possible.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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