Losing money for five consecutive years but "8 limit-ups in 10 days," Xinneng Taishan responds: purely a market behavior

(Source: First Wind)

On April 7th, Xineng Taishan (000720.SZ) opened strongly and hit the daily limit. By midday, the stock price was 6.53 yuan per share, up 9.93%, with a total market value surpassing 8.2 billion yuan.

This is another recent daily limit for the stock. Data shows that over the past 10 trading days (March 24 to April 7), Xineng Taishan’s stock price experienced sharp fluctuations, recording 8 daily limits and 2 daily declines, exhibiting typical “phenomenal stock” characteristics.

Regarding the abnormal stock price fluctuations, a staff member from Xineng Taishan’s securities department responded that all information the company should disclose has been disclosed, and stated, “This is purely market behavior.” Additionally, Xineng Taishan issued announcements on March 26 and April 6 regarding abnormal trading fluctuations, stating that after self-examination, the company does not have any violations of information disclosure fairness.

Image source: Tonghuashun

Market analysis generally believes that Xineng Taishan’s recent strong performance mainly stems from its classification into the actively traded optical fiber concept sector by the market.

However, Wind Finance reporters noticed that Xineng Taishan has clarified on interactive platforms that the company currently has no optical fiber business. Its controlling subsidiary, Shandong Luneng Taishan Qufu Cable Co., Ltd., mainly produces optical fiber composite overhead ground wire, all-dielectric self-supporting optical cable, conventional layered communication optical cable, and mining optical cables. This differs from market expectations.

Screenshot from Shenzhen Stock Exchange Interactive Platform

Losses for nearly 900 million yuan over five consecutive years

Public information shows that Xineng Taishan was established in 1994 and listed on the Shenzhen Stock Exchange in 1997. The company’s controlling shareholder is China Huaneng Energy Transportation Industry Holding Co., Ltd. (“Energy Transportation Company”), with China Huaneng Group Co., Ltd. (“Huaneng Group”) as the actual controller.

As a platform for Huaneng Group’s listed companies, Xineng Taishan’s main business includes the production of electrical wires and cables, industrial park development, and comprehensive asset operation. From a business structure perspective, the company’s performance is highly dependent on the wire and cable business. In 2024, this segment achieved revenue of 1.08B yuan, accounting for 93% of the company’s total revenue; in the first half of 2025, the revenue share from cables further increased to about 95%.

Despite backing from a strong state-owned enterprise, Xineng Taishan’s operational pressure has become increasingly apparent in recent years. From 2021 to 2024, the company’s operating revenues were 4.18B yuan, 3.98B yuan, 1.46B yuan, and 1.16 billion yuan, respectively, showing a continuous decline; during the same period, net profits attributable to shareholders of the parent were -94 million yuan, -134 million yuan, -66,000 yuan, and -132 million yuan, accumulating losses exceeding 400 million yuan.

The performance downturn further worsened in 2025. According to Xineng Taishan’s disclosed earnings forecast, the company expects a net loss attributable to shareholders of 385 million to 500 million yuan for the full year of 2025. Xineng Taishan explained that this mainly results from provisions for inventory impairment related to the industrial park construction projects, which impacts performance.

Regarding the company’s recent performance difficulties, the aforementioned staff only said, “Please pay attention to the announcements.”

“Where is the new growth point?”

In recent years, Xineng Taishan has repeatedly mentioned “seeking new growth points” in various periodic reports and investor communications.

In the mid-year and annual reports of 2024, the company stated, “According to the established transformation development direction, actively paying attention to market and industry changes and the opportunities they bring, conducting special research on asset integration, and continuously seeking new growth points.”

On May 8 and 15, 2025, during investor relations activities, investors also expressed concerns about “whether there are new business growth points in the future” and “whether there are specific ideas for transformation and development.” In response, the company said, “The company will focus on transformation development and management, conduct special research on asset integration, continuously seek new growth points, enhance the company’s intrinsic value, and improve its competitiveness.”

Screenshot from Xineng Taishan’s investor relations activity record released on May 8, 2025

However, the company has not yet disclosed any substantive transformation projects or new growth businesses. Financial data shows that in the first half of 2025, the company’s investment was only 593k yuan, a year-on-year decrease of 35.70%, with limited investment in business expansion, technological upgrades, or new project layouts.

Image source: 2025 semi-annual report

It is worth noting that amid ongoing performance pressure, the company’s financial situation has also attracted attention. On January 29, 2026, Xineng Taishan announced that to meet the funding needs of production, operation, and project construction, its controlling shareholder, Energy Transportation Company, and subsidiaries planned to provide a loan of up to 500 million yuan to the company, with a term of no more than one year.

Written by / Wind Finance Reporter Zhang Tingwang

Edited by / Wind Finance Editor Tian Liang