On May 13th, Tianyu Mathematical Science (002354), which was widely browsed in the fields of digital humans, metaverse, AI, etc., fell below the limit. The reason for this may be directly related to a news article.
The company announced on May 12 that Tianyu Digital Technology (Dalian) Group Co., Ltd. (hereinafter referred to as the “Company”) sent a “Filing Notice” and “Lien Notice” to the Ningxia Hui Autonomous Region Procuratorate on May 11, 2024. Xu Dewei, the Chairman and General Manager of the company, was investigated and detained by the Ningxia Hui Autonomous Region Procuratorate on suspicion of joint duty compliance.
However, Tianyu Mathematics Department exaggerated in the notice that this filing inspection incident is aimed at Xu Dewei’s personal investigation and is related to the company. At present, the board of directors and supervisory board of the company are operating normally, and the control of the company has not been abolished or changed. Other senior management personnel are performing their duties normally, and the order of the company and its subsidiaries undergoing labor operations is normal. At the decision of the General Manager’s Office Meeting, Director and Deputy General Manager He Han will temporarily take charge of the daily operation and management of the company.
Interface News is seeking more responses from Tianyu Digital Science and Technology regarding the above news, and has stopped publishing without restoring it.
According to information from Minwang, Xu Dewei, who has been detained, has previously served as an employee in the Political Department of the Yinchuan City Detachment of the People’s Armed Police, the Secretary General of the Yinchuan City People’s Government Office, the Deputy Director of the Yinchuan City Financial Rest Bureau, the General Manager of Beijing Tianxiang Xingyun Private Equity Fund Governance Co., Ltd., and the Executive Deputy General Manager of Asia Potassium Domestic Investment (Guangzhou) Co., Ltd. He is currently the Chairman and General Manager of the company.
The predecessor of Xu Dewei’s Tianyu Digital Entertainment was the gaming company “Tianshen Interactive”, which went public in 2014 and was renamed as Tianshen Cultural Entertainment. In 2021, the company’s securities abbreviation was changed to “Tianyu Shuke”. During this process, Xu Dewei took over corporate governance, and the business structure of Tianyu Digital Science and Technology gradually integrated.
The company’s main business is divided from a product perspective into digital consequence traffic, brand substance traffic, digital competitive platforms, and others, with the largest proportion being digital consequence traffic business. In 2022 and 2023, the proportion of digital consequence traffic business in the company’s total revenue was 86% higher.
In recent years, this company has been hoping to encounter trends such as the metaverse, digital humans, and AI, and has also launched some marketing and metaverse platforms. However, from the perspective of research and development, its technological attributes still need to be strengthened.
In 2023, the total R&D expenditure of Tianyu Digital Science and Technology only accounted for 3.47% of its business expenses, a decrease of 0.35% compared to 2022.
This company also experienced significant losses in its business, with a net loss of 1.087 billion yuan, an increase of 2.85 times compared to the same period last year, after realizing business expenses of 1.761 billion yuan.
As for the reasons for the losses, Tianyu Digital Science and Technology stated in its annual report that the company’s main business is showing a positive growth trend, but there are significant losses in the performance of its departmental shareholding companies, which has a significant impact on the investment benefits recognized by the company under the equity method accounting. At the same time, the company’s provision for long-term equity investment value added reserves for departmental equity participating companies has a significant impact on the overall performance of the company. As a result, the net profit attributable to the owners of the parent company for the entire year decreased year-on-year.
However, the various new businesses that the company is currently promoting are still in their early stages, and there is significant uncertainty in their survival.
In addition to the digital consequence traffic business that accounts for over 80%, Tianyu Digital Technology is also transforming towards various digital services, even exploring computing power and data services. In the 2023 annual report, the company summarized its main business into data traffic, AI initiated digital marketing intelligence, “quality and efficiency sales”, and digital competitive platforms. Looking at it, computing power and brand services are the new trends being promoted by Tianyu Mathematics.
On October 25, 2023, the Shanxi Data Traffic Ecological Park, a subsidiary of the company, signed a mutual assistance agreement with Shanxi Data Technology Co., Ltd., a national advanced computing unit in Taiyuan, and Shanxi Digital Property Association. At the beginning of this year, Tianyu Digital Science and Technology stated on the interactive platform that the company’s computing power business has not yet contributed business expenses, and the promotion and survival of subsequent businesses are uncertain.
In terms of brand services, Tianyu Shuke has provided services for various institutions, including live streaming operations and e-commerce platform full case marketing services, but has not yet caused a focus bias.
In addition, your company also has some structure in integrating practical and short drama aspects. In the face of significant losses, the above-mentioned businesses have strong competitors in the straight category, and it is not yet known whether Tianyu Digital Science’s “multi faceted cooperation” strategy can bring stable benefits to itself.
Due to the detention of Chairman Mao, the stock price of Tianyu Digital Science and Technology fell below the limit on May 13th, with a total market value of 6.205 billion yuan and a pre publication price of 3.75 yuan.