Tianli Technology significantly downgrades its performance: a subsidiary's sudden lawsuit leads to a decrease in net profit, with core business continuing to incur losses.

Listing: Sina Finance Listed Company Research Institute

Author: Hao Xian

On March 13, Tianni Technology released a revised earnings forecast for 2025, announcing that net profit attributable to the parent company will be between -4 million and -2 million yuan, a decrease of 341.27% to 220.63% year-over-year. Previously, the forecast estimated net profit attributable to the parent to be between 5 million and 7.5 million yuan, a significant increase. Non-recurring net profit was also sharply revised downward, from an initial estimate of -17 million to -13 million yuan, to -21 million to -13 million yuan.

Following this announcement, on the next trading day, Tianni Technology’s stock opened sharply lower, with intraday declines exceeding 8%, and closed down 4.9%.

From the company’s perspective, its main business continues to operate at a loss, relying on investment income for profit, while a sudden lawsuit involving subsidiaries further exposes operational risks.

Subsidiary Lawsuit Causes Significant Earnings Downgrade

Tianni Technology explained that a lawsuit emerged suddenly in March 2026. Its subsidiary, Tiancai Insurance Brokerage Co., Ltd. (hereinafter “Tiancai Insurance”), had a dispute over an insurance cooperation agreement with Hongkang Life Insurance Co., Ltd. (hereinafter “Hongkang Life”). Hongkang Life filed a lawsuit and froze Tiancai Insurance’s bank account funds.

The frozen funds in Tiancai Brokerage’s main account amount to 4.3977 million yuan, with a requested freeze amount of 90.181 billion yuan. These amounts represent approximately 0.84% and 1.71% of the company’s latest audited net assets, respectively, and about 4.76% and 9.77% of the latest audited monetary funds.

Based on this, the company revised its 2025 performance forecast, estimating a loss of about 9 million yuan, with approximately 4 million yuan impacted by non-recurring gains and losses, and accordingly reducing net profit attributable to shareholders of the listed company.

However, Tianni Technology issued an announcement titled “Regarding the Partial Funds Frozen in the Bank Accounts of Wholly-Owned Subsidiaries” on March 13, 2026. The company stated that this matter is a post-balance sheet adjustment and thus requires revision of the 2025 earnings forecast.

According to relevant regulations, whether a matter is classified as an adjustment or non-adjustment depends on whether the situation existed before the balance sheet date. This may imply that the lawsuit existed before December 31, 2025, raising questions about whether the company had fully disclosed related risks.

Notably, before the end of 2025, shareholder Qian Yongyao continued to reduce his holdings. In mid-November 2025, Qian completed a round of share reduction totaling 0.96%. On December 12, 2025, Qian announced a plan to further reduce up to 3% of shares within the next 90 days.

As of mid-2025, Qian Yongyao directly held 13.26% of the shares. Qian Yongmei and Qian Yongyao are siblings; Qian Yongmei is the controlling shareholder and legal representative of Jiangyin Xinyuan. Qian Yongyao, Qian Yongmei, Jiangyin Xinyuan, and Tianjin Zhihui are acting in concert. Before the share reduction in the second half of 2025, these parties held a total of 15.95% of the shares.

Meanwhile, Tianni Technology’s controlling shareholder, Shangrao Digital and Financial Industry Investment Group Co., Ltd. (hereinafter “Shangrao Investment Group”), has a high pledge ratio. By the end of 2025, Shangrao Investment Group held 30% of the shares, half of which were pledged. According to Wind data, as of March 16, the pledged market value change rate had reached -10.71%, hitting warning and margin call levels.

Main Business Continues to Operate at a Loss; Investment Income Contributes to Profits

Tianni Technology mainly provides mobile information services and insurance products. Its mobile information services primarily target large and medium-sized domestic corporate clients, assisting them in delivering SMS, MMS, flash messages, and other mobile information services to end users.

In insurance services, Tianni Technology operates through its subsidiaries Shanghai Yuhui Insurance Brokerage and Tiancai Insurance Brokerage, offering professional insurance brokerage services and developing scenario-based insurance products to meet specific risk protection needs.

In 2024, mobile information services accounted for 28.86% of revenue, while insurance services accounted for 70.6%. In the first half of 2025, mobile information revenue sharply declined to 19%, while insurance revenue surged to 81%.

The biggest challenge for Tianni Technology is its low gross profit margin in core operations, indicating weak profitability. In the first half of 2025, the gross margin for mobile information services was only 4.4%, and for insurance services just 2.62%, with an overall gross margin of only 2.98%. In 2024 and the first three quarters of 2025, non-recurring losses amounted to 18.0475 million and 14.2314 million yuan, respectively.

Since 2020, Tianni Technology has been operating at a non-recurring loss, relying mainly on gains from asset disposals and fair value changes of subsidiaries’ holdings. Its subsidiary Shangrao Tianshutong, established in May 2020, mainly invests in unlisted companies in the information technology, cybersecurity, and software services sectors, including SoftPower. Besides equity investments, the company also continues to purchase wealth management products, with interest income becoming an important profit source in recent years.

However, from the company’s perspective, cash flow from operating activities in the first three quarters of 2025 was a net outflow of 51.0176 million yuan, with a significant decline in cash receipts.

Facing fierce competition and technological substitution pressures, Tianni Technology is shifting focus to digital economy sectors such as 5G messaging, AI computing, and AI insurance. In March 2026, the company participated in establishing two new companies: Jike Kai Ge Intelligent Computing Technology (Jiangxi) Co., Ltd. and Shanghai Tianli Beichen Computing Power Technology Co., Ltd., each holding 51%, though their registered capital contributions are modest.

Due to continuous losses, the company’s R&D expenditure in 2024 was only 7.8229 million yuan, and in 2023, 9.7761 million yuan. As of the end of the third quarter of 2025, the company’s cash and cash equivalents amounted to 79.3837 million yuan, with trading financial assets of 209 million yuan. Whether the new business transformation will succeed remains to be seen over time.