Core Viewpoint - Tianyi New Materials has initiated a pre-restructuring process due to liquidity risks and creditor claims, highlighting ongoing financial difficulties and regulatory scrutiny [1][2]. Group 1: Company Financial Situation - Tianyi New Materials is facing a pre-restructuring process initiated by the Beijing First Intermediate People's Court due to claims from creditor Tianjin Shengyu Automotive Parts Co., Ltd. regarding the company's inability to repay debts and lack of assets to cover liabilities [1]. - The company has been under regulatory scrutiny since 2022, with concerns raised about its operational risks and liquidity issues stemming from a decline in demand for its main product, brake pads, due to the pandemic and increased industry competition [1][2]. - In the 2024 annual report inquiry response, the company acknowledged that funding shortages remain a primary issue, indicating potential liquidity risks if the industry continues to decline [2]. Group 2: Regulatory and Legal Challenges - The Shanghai Stock Exchange has continuously monitored Tianyi New Materials, issuing multiple inquiries regarding the company's revenue growth juxtaposed with declining net profits and fluctuating gross margins [2]. - The company has reported multiple account freezes and legal disputes, with its bank accounts facing repeated freezes since July 2025, which has hindered daily operations and specific fundraising projects [2]. - There is uncertainty regarding whether the company will successfully enter the restructuring process, as the court's decision to initiate pre-restructuring does not guarantee acceptance of the final restructuring application [2].