Core Viewpoint - Tian Tie Technology's controlling shareholder Wang Meiyu plans to reduce his stake in the company, which raises concerns about the company's financial health and future prospects as the stock price reaches new highs [1][15]. Group 1: Shareholder Actions - Wang Meiyu, the largest shareholder with a 7.55% stake, intends to reduce his holdings by up to 38.948 million shares, representing 3% of the total share capital [1]. - The stock price of Tian Tie Technology reached a year-high of 7.79 yuan per share, with a market capitalization exceeding 10 billion yuan, reflecting a 56% increase year-to-date [1]. Group 2: Financial Health - As of June 19, 2025, Wang Meiyu and five other concerted actors hold a total of 273 million shares, with 162 million shares pledged, resulting in a pledge ratio of 59.34% [2]. - The company has a significant external guarantee balance of 836 million yuan, which constitutes 34.66% of the audited net assets for 2024, indicating substantial financial risk [2]. - Operating cash flow has been negative for three consecutive years, with cumulative losses of 1.13 billion yuan from 2022 to 2024 [2]. Group 3: Business Performance - Tian Tie Technology's main business, which focuses on rail engineering rubber products, has seen a decline in revenue due to reduced infrastructure investment, with revenues dropping from 1.073 billion yuan in 2021 to 300 million yuan in 2023 [3]. - The lithium materials business, acquired through significant investments, has become a financial burden, with losses reported at 60.52 million yuan in 2024 and further losses in 2025 [6][7]. Group 4: Profitability and Cash Flow - In 2024, Tian Tie Technology reported a revenue of 2.136 billion yuan, a 41.69% increase, but the net profit of 15.204 million yuan was largely due to non-recurring gains, masking ongoing core business losses [8][9]. - The company has experienced a continuous cash flow deficit, with a net cash flow from operating activities of -1.4 billion yuan in 2024, indicating deteriorating profitability quality [9][12]. Group 5: Debt and Expansion Plans - The company's debt ratio has increased from 35.95% in 2021 to 56.68% by the first quarter of 2025, nearing the 60% warning line [12]. - Despite financial struggles, the company announced a 1.45 billion yuan investment in a new project, raising concerns about its ability to manage existing debts while pursuing expansion [14][15].