Guosheng Technology warns of risks after four consecutive increases: expected losses in performance, uncertainties in acquisitions, and solid-state battery project loan funds not yet received

On the evening of March 11, Guosheng Technology (603778), which had experienced four consecutive days of gains, issued a stock trading risk warning announcement. The company’s stock price closed with a limit-up on March 11, with a closing price of 20.82 yuan per share. During March 6, 9, and 10, the stock’s closing price deviation exceeded 20% for three consecutive trading days.

Guosheng Technology’s latest price-to-book ratio in the electrical machinery and equipment manufacturing industry is 3.53, while the company’s own ratio is 17.09, higher than the industry average. After self-examination, the company reports no significant changes in its main business or fundamentals.

The company warns of performance risks, estimating that net profit attributable to shareholders of the listed company for 2025 will be between -650 million and -325 million yuan.

On October 14, 2025, the company disclosed an announcement regarding external investments and related-party transactions. Its secondary controlling subsidiary, Anhui Guosheng New Energy, plans to invest 230 million yuan in Tieling Global and subsequently develop an intelligent manufacturing project for the solid-state battery industry chain.

However, this matter faces multiple risks. The announcement states that the funding for this external investment will mainly come from bank loans, which will increase the company’s liabilities and pose liquidity risks. The project loans have not yet been secured, and the project’s progress and commercialization prospects are uncertain.

Additionally, Tieling Global has not yet engaged in actual production or operations and may face management and business risks in the future.

Furthermore, Guosheng Technology also highlights risks related to the acquisition of equity interests. On November 25, 2025, and January 15, 2026, the company disclosed announcements regarding the acquisition of 100% equity of Fuyue Technology Co., Ltd. in Tongling City. The company intends to acquire this equity for 241 million yuan, transferring shares held by Zhenghao Technology and Lin Qin.

Currently, the merger and acquisition loan is still under approval. The payment conditions for the first phase of the equity purchase and some prerequisites for the transaction have not yet been met. There is a risk that the acquisition loan may not be approved, and the transaction may not be completed.

The target company mainly engages in the research, production, and sales of high-precision new lithium battery structural components. The company plans to integrate the target through various aspects such as technology and team, but the effectiveness of this integration is uncertain.

At the same time, Guosheng Technology states that the target company’s revenue mainly depends on its top two clients, resulting in high revenue concentration. After the transaction, the company’s consolidated balance sheet is expected to record approximately 220 million yuan in goodwill.

Guosheng Technology also notes that as of the disclosure date, its controlling shareholder, Guosheng Energy Co., Ltd., holds 108,295,827 shares, accounting for 16.49% of the total shares. The total pledged shares amount to 63,900,000, representing 59.01% of its holdings and 9.73% of the total share capital. The pledge ratio of the controlling shareholder’s shares is relatively high.

Public information shows that Guosheng Shian Technology Co., Ltd. is a high-tech enterprise focusing on ecological governance and new energy as its dual main businesses. Guosheng Technology entered the new energy field in 2022, planning to build a full industry chain from silicon materials, crystal pulling, ultra-thin N-type silicon wafers, high-efficiency heterojunction cells, to large-sized modules.

Source: Du Chuang Finance
(Original source: Shenzhen Business Daily)