Farsensor clarifies that there is no restructuring situation after two consecutive limit-up days

On the evening of March 15, Far Sheng (000890) issued an announcement regarding unusual stock price movements. The company’s business does not involve “special optical fiber” or “optical fiber,” and there are no situations of “restructuring” or “backdoor listing.” If the company’s stock price continues to rise further in the future, the company may apply to the Shenzhen Stock Exchange for trading suspension and investigation.

On March 13, Far Sheng opened with a rapid surge and hit the daily limit, achieving two consecutive trading halts. The announcement shows that the company’s stock price closed with a cumulative deviation of 22.62% on March 12 and March 13. Since February 6, the company’s stock has increased by 107.68%, and the price volatility has seriously diverged from the company’s fundamentals.

Far Sheng stated that the company’s stock price has also significantly deviated from the overall market index and industry index, with short-term fluctuations greatly diverging from market trends. According to Shenwan industry classification, the metal products industry index increased by 1.54% during the same period, the environmental protection industry index increased by 7.37%, and the Shenzhen Composite Index increased by 1.91%. Excluding overall market factors, the actual stock price fluctuations are large, indicating serious market overheating and irrational speculation, with a risk of rapid decline in the future.

Far Sheng reminded that the sale of a 10% stake in its associate company, China Bekaert Steel Cord Co., Ltd., was completed on March 10. This transaction is expected to reduce the company’s net assets by 17.1028 million yuan in 2025. It does not affect the company’s operating income, profits, or other indicators, nor will it change the company’s main business. The company’s main business remains metal products and environmental protection. Metal products account for about 72% of the company’s revenue, and there are no plans or arrangements to divest this business. The funds from the transaction are mainly used to repay interest-bearing debt and supplement working capital, with no plans to acquire other assets.

Regarding market rumors of “backdoor listing” and other false information, Far Sheng also denied these rumors. The mentioned subsidiaries, Jiangsu Far Sheng Optical Communication Technology Co., Ltd. and Jiangsu Far Sheng Optoelectronic Technology Co., Ltd., are controlled by the company’s major shareholder and have no equity or business dealings with the listed company. As of the announcement date, there are no plans to restructure these two companies.

Jiangsu Far Sheng Optical Communication Technology Co., Ltd. mainly produces and sells communication optical rods and optical fibers. In 2024, its revenue was 173 million yuan, with a net loss of 33.6388 million yuan, indicating a small scale of operations and ongoing losses. Jiangsu Far Sheng Optoelectronic Technology Co., Ltd. mainly produces and sells optical fibers and components, as well as security monitoring system integration, related software research and development, production, and services. In 2024, its revenue was 86.84 million yuan, including military product revenue of 8.3963 million yuan; net profit was 15.3611 million yuan. Overall, its revenue and profit scale are small.

Far Sheng stated that the market rumors about Putian Far Sheng Optical Communication Co., Ltd. (hereinafter “Putian Far Sheng”) are false. Putian Far Sheng, in which the company holds a 19% stake, mainly produces communication optical preforms, optical fibers, and cables, and is not involved in “special optical fiber” or “fiber sensing” businesses. China Electronics Technology Group indirectly holds a 6% stake in Putian Far Sheng. The company’s shareholding is small, and there have been no plans, negotiations, intentions, or agreements regarding asset restructuring. From 2022 to 2024, Putian Far Sheng’s net profits were -60.955 million yuan, -51.9575 million yuan, and -18.8178 million yuan, respectively, indicating ongoing losses. The company’s low stake in it has little impact.