Key Data Threshold Crossed: Will *ST Tianwei Neng Still Be Able to "Remove the Special Treatment"? Uncertain

On the evening of February 27, *ST Tianwei (688511) disclosed its 2025 annual report. On the same day, the company’s board of directors approved the application to the Shanghai Stock Exchange to revoke the delisting risk warning.

According to the annual report, *ST Tianwei’s operating revenue in 2025, excluding business income unrelated to its main operations, was approximately 142 million yuan, with net profit attributable to the parent of about 34.13 million yuan, and net profit after non-recurring gains and losses of approximately 19.48 million yuan. From the report, this data has already exceeded the “red line” for the delisting financial indicators.

However, it is important to note that the safety of *ST Tianwei in avoiding delisting still depends on a key variable: whether the final approved prices for the company’s products in 2025 will significantly decrease compared to the provisional prices in the report. The company’s estimated model shows that if the prices are reduced by 10% or 15%, the company’s adjusted revenue and net profit in 2025 could still trigger delisting indicators.

Applying for “Delisting Removal” After Publishing the Annual Report

*ST Tianwei mainly engages in the research, production, sales, and technical services of new fire suppression and explosion prevention systems, a universal collection drive for certain three-proof products, high-energy aircraft ignition discharge devices, high-precision fuses, and other products.

In 2024, after deducting business income unrelated to its main operations and income without commercial substance, the company’s operating revenue was only about 74.79 million yuan, with a net loss attributable to the parent of approximately 31.78 million yuan. The company’s 2024 performance triggered the “red line” of the delisting financial indicators, which states that “the total profit, net profit, or net profit after deducting non-recurring gains and losses in the most recent audited fiscal year is negative, and operating revenue is below 100 million yuan.” As a result, the company’s stock has been under delisting risk warning since May 6, 2025.

Therefore, whether the 2025 performance can meet the standards is critical for *ST Tianwei to avoid delisting.

On the evening of February 27, *ST Tianwei announced that, based on the 2025 audit report issued by Sichuan Huaxin (Group) Certified Public Accountants (Special General Partnership), the company’s revenue after deducting unrelated business income in 2025 was approximately 142 million yuan, with net profit attributable to the parent of about 34.13 million yuan, and net profit after non-recurring gains and losses of approximately 19.48 million yuan. According to relevant provisions of the Shanghai Stock Exchange Sci-Tech Innovation Board Listing Rules, the company meets the conditions to apply for the removal of the delisting risk warning.

*Comparison of Major Financial Indicators for 2024 and 2025 (Source: ST Tianwei 2025 Annual Report)

The company states that during the reporting period, it has been deeply engaged in the field of new fire suppression and explosion prevention systems, undertaking the development of several key models, and continuously expanding product application areas.

Based on these performance data, the board of directors agreed to apply to the Shanghai Stock Exchange for the removal of the delisting risk warning.

According to regulations, the Shanghai Stock Exchange will decide whether to revoke the warning within 15 trading days after receiving the complete application materials from the company.

During the review period, *ST Tianwei will not apply for stock suspension, and its shares will continue to trade normally.

Operational Performance May Be Downwardly Adjusted; “Delisting Removal” Still Uncertain

The reporter notes that *ST Tianwei has warned in its annual report about the risk of downward adjustment of its 2025 operating performance. This introduces uncertainty into the company’s ability to remove the delisting risk.

The company states that the fire suppression and explosion prevention systems it sells require customer price approval. Since the approval cycle is generally long, before the customer’s price review, the company records the product delivery prices based on provisional negotiated prices. These provisional prices are usually determined by factors such as the approved prices of similar products and winning bid quotes, and are adjusted after customer review. If there is a discrepancy between the provisional and final approved prices, the company will adjust revenue in the period when the review is completed.

In cases where the final approved price is significantly lower than the provisional price, the company’s performance will decline markedly. Although the possibility of large negative review income is small, there is still a risk of significant price drops due to special reasons.

The company provides a price adjustment simulation. Assuming the review prices differ from provisional prices by ±5%, 10%, or 15%, the impact on revenue and net profit from products not yet approved for pricing in 2025 will be adjusted accordingly, affecting the overall financial indicators.

From the table, it can be seen that when the price adjustment is -10% or -15%, the company’s revenue after adjustment in 2025 will fall below 1 billion yuan, and net profit will be negative, potentially triggering the delisting financial indicators. Therefore, the final confirmation of the approved prices will be key to whether the company can successfully remove the delisting risk.

(Source: Shanghai Securities Journal)