Core Viewpoint - Tianji Technology is facing a severe survival crisis due to a legal case involving bid-rigging, resulting in a significant drop in stock price and continuous financial losses [3][4][12]. Group 1: Legal Issues - On December 22, 2025, Tianji Technology was indicted for "collusion in bidding" by the Shanghai Hongkou District People's Procuratorate, implicating the company and three executives [3][4]. - The case originated from the arrest of former chairman Su Yujun in February 2024, leading to a change in leadership and raising concerns about the company's operational stability [4][5]. - The indictment suggests that the actions were not merely individual misconduct but reflected the company's intent, with potential penalties including fines and a three-year ban from government procurement [5][9]. Group 2: Financial Performance - Tianji Technology has reported negative net profits for three consecutive years: -3.08 million in 2022, -71.05 million in 2023, and -57.76 million in 2024, with losses worsening in 2025 [7][8]. - Despite a 35.8% year-on-year revenue increase in the first three quarters of 2025, the net loss expanded to 42.91 million, a staggering 197.84% decline compared to the previous year [7][9]. - The company's cash flow is under severe pressure, with a net outflow of 114.48 million in operating activities for the first three quarters of 2025, and a total of 2.1 billion in short-term debt, indicating a cash shortfall [9][10]. Group 3: Business Model and Market Position - Tianji Technology's business model has remained stagnant, primarily relying on project contracts without significant development of standardized products, leading to declining profit margins [10][11]. - The company's gross profit margin has decreased from 32% in 2021 to below 18% in 2024, while R&D expenditure as a percentage of revenue has dropped from 9.8% in 2015 to 4.3% in 2024 [10][11]. - The company has seen a drastic reduction in project wins, with only 7 projects amounting to less than 90 million in 2025, a 76% decline compared to the previous year [9][10]. Group 4: Shareholding and Debt Situation - As of December 20, 2025, Su Bo and his associates have pledged 73.4% of their shares, amounting to 34.5% of the company's total shares, to secure personal financing, with a financing balance of approximately 470 million [11][12]. - The company faces additional pressure from a strategic investment involving a state-owned fund, with a significant unrealized loss due to the stock price drop, further complicating its financial situation [12].