Shangwei New Materials: The Truth Hidden in the Annual Report Inquiry Letter

After the annual report and first-quarter report are released, what information deserves the most attention before the semi-annual report arrives? The annual report inquiry letter. The Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) issue annual report inquiry letters based on urgency—prioritizing matters according to severity and timeliness. Receiving an inquiry letter promptly serves as a warning—especially to retail investors—that significant risks may lurk here. On May 13, 2026, Shangwei New Materials issued two announcements simultaneously: one titled “Reply Announcement Regarding the SSE’s Inquiry Letter on Information Disclosure in the 2025 Annual Report,” and another—the “Special Statement on Matters Subject to Audit Verification by the Year-End Auditor”—issued by Rongcheng Certified Public Accountants. The fact that both announcements appeared together itself signals an unusually high level of regulatory concern from the SSE regarding Shangwei New Materials’ 2025 annual report—a company listed on the STAR Market. What lies at the core of the inquiry? Regulators focused on three key issues: (1) corporate governance following the change in control; (2) unfulfilled performance commitments; and (3) unpaid performance compensation. These three issues entangled Shangwei New Materials’ 2025 financial statements like three tightening ropes. Even more worrying is that in Q1 2026, the company posted revenue of RMB 418 million, up 13.23% year-on-year—but net profit attributable to shareholders plunged 282.12% year-on-year to a loss of RMB 41.07 million. 1 Timeline of the Change in Control: From Agreement Signing to Tender Offer Shangwei New Materials’ change in control traces back to 2025. Shanghai Zhiyuan Hengyue Technology Partnership (Limited Partnership) acquired control via share transfer agreement. According to Huatai United Securities’ ongoing supervision opinion, the entire control transition unfolded through these key milestones: Time Event Description 2025-07-08 Share Transfer Agreement Signed Transferor and Zhiyuan Hengyue reached agreement 2025-11-25 Board Renewal Completed New controlling shareholder assumed actual control 2025-12 Industrial & Commercial Registration Updated Actual controller officially changed 2026 Huatai United Ongoing Supervision Supervision period continues, focusing on control stability A change in control itself is not problematic. It is common for STAR Market-listed companies to introduce strategic investors and optimize equity structures—standard capital-market activity. The issue arises when such changes come with performance commitments: original shareholders pledge future operating results to new shareholders, with cash or other forms of compensation required if targets are missed. Shangwei New Materials’ performance commitments were signed precisely against this backdrop—and the 2025 operating results brought those commitments sharply into public view. Per disclosures in the inquiry reply announcement, the control-change transaction included performance commitment clauses. The committing parties guaranteed the following 2025 operating metrics: Indicator Commitment (RMB 10,000) Actual Achievement (RMB 10,000) Gap (RMB 10,000) Net Profit Attributable to Shareholders 6,000 4,109 −1,891 Net Profit Attributable to Shareholders Excluding Non-recurring Gains/Losses 8,000 3,266 −4,734 Source: iFind First, net profit attributable to shareholders: committed at RMB 60 million, actually achieved RMB 41.09 million—shortfall of RMB 18.91 million, completion rate only 68.48%.

From Obscure STAR Market Listing to Humanoid Robot Rising Star: Shangwei New Materials’ Market Cap Soars 23-Fold

Before the robot story arrived, Shangwei New Materials epitomized the classic A-share paradox: an ‘excellent industrial player, but underperforming capital-market stock.’ A change in control sparked a STAR Market epic surge. July 2025 marked the watershed moment in Shangwei New Materials’ fate. The core team behind Zhiyuan Robotics took control via Zhiyuan Hengyue, and Jihui Jun assumed the role of chairman—completing a full management overhaul. The market instantly repriced the company—not as a chemical materials stock, but as a consumer-grade humanoid robotics play. This capital-market revaluation was nothing short of frenzied: • Pre-surge baseline market cap: RMB 2.4 billion • Peak market cap: RMB 58 billion • Maximum market-cap surge: 23-fold • Pre-surge baseline share price: ~RMB 7.5 • Peak share price: RMB 102 • Maximum share-price gain: ~12.6-fold A 12.6-fold share-price rise and 23-fold market-cap expansion rank among the most extreme valuation leaps seen recently on the STAR Market. Critically, this extraordinary surge had zero connection to the company’s existing operations. Throughout the rally, the robotics business generated zero revenue and zero profit—all gains stemmed purely from capital-market expectations around the C-end humanoid robotics sector: a textbook case of ‘logic-driven re-rating’ and ‘sector substitution.’ The market completely discarded its past identity—no longer valuing wind-power resins, corrosion-resistant materials, or cyclical gross margins—focusing solely on its new label: ‘the sole A-share listed platform for consumer-grade home humanoid robots.’ Legacy business fuels operations; new赛道 burns cash for future upside Beneath the supercharged valuation, the company’s true operational reality was fully revealed in the 2026 semi-annual report. During the reporting period, revenue reached RMB 803 million—steady growth—but net profit attributable to shareholders fell to a loss of RMB 167 million. This seemingly alarming loss has nothing to do with traditional operations. Shangwei New Materials’ legacy advanced-materials segment remains stably profitable; all losses stem entirely from intensive investment in the robotics business. Total R&D spending for the half-year amounted to RMB 180 million—with RMB 164 million exclusively allocated to Qiyuan Robotics, funding team building, product refinement, algorithm iteration, and production-line validation. Meanwhile, the company’s robotics products have already secured RMB 210 million in advance payments and pre-orders—market enthusiasm far exceeding expectations. Yet under accounting standards, deposits cannot be recognized as current-period revenue; thus, the books reflect ‘high investment, zero realization, and temporary losses.’ The underlying business model is crystal clear: the stable, cash-generative legacy materials business provides sustainable operating cash flow—fully subsidizing the humanoid-robotics ‘second curve.’ It’s a bet—using manufacturing profits to stake a claim on AI’s ultimate consumer-hardware frontier. Partnership with Shangpin Home Collection: From Conceptual Hype to Real Commercialization If the earlier surge was driven purely by expectations, the tangible move in September 2026 began grounding the narrative in reality. Qiyuan Robotics—Shangwei New Materials’ subsidiary—teamed up with leading home-furnishings firm Shangpin Home Collection to jointly establish Shangyuan Zhiqi Robotics Co., Ltd., formally unlocking the hardest challenge in humanoid robotics: ‘entry into the household.’ The two parties’ roles are highly complementary: Shangpin Home Collection contributes its nationwide offline retail network, whole-home furnishing scenarios, C-end user channels, and end-to-end delivery capabilities; Shangwei New Materials supplies humanoid robot hardware integration, force-control technology, lightweight composite structural design, and mass-production manufacturing capacity.

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