Summary of Key Points
The stock price of Zaisheng Technology soared by over 300% within half a year due to false rumors that the company supplies materials to SpaceX, only to plummet by nearly 30% afterwards. After multiple warnings about the risks proved ineffective, the company decided to take legal action against those who spread the misinformation. Meanwhile, the company's performance has been declining in recent years, and senior executives have sold their shares, with a large number of retail investors rushing in to buy them.
1. SpaceX Rumors Driven Stock Price Surge, but Business Contribution Minimal
Some in the market claim Zaisheng Technology is the "leading stock related to SpaceX," but the company has clarified that it began supplying high-silicon oxide fibers (used for spacecraft insulation) to an international aerospace company in 2020. However, this revenue accounted for only 0.66% of total sales in 2025, and there are currently no ongoing orders, so it has little impact on the company's performance. Despite this, the stock price rose from around 5 yuan in December last year to 23.53 yuan in May this year, an increase of 368%. It was like the "Emperor's New Clothes" scenario—everyone bought in without caring about the actual financial fundamentals.
2. The Company Hits a Limit: From Risk Warnings to Legal Action
The company issued ten announcements regarding unusual stock price movements, repeatedly stating that this business was unprofitable and advising investors not to speculate on it. But the market continued to heat up. On May 28, the company finally reacted sharply, saying in an announcement that the stock price was like a "passing the ball in a game of drums" and could fall at any time, marking a turning point followed by three consecutive daily limit-downs. On June 2, the company took even more drastic action, announcing that it had evidence of the false information and would report it to the authorities if necessary to hold the rumor-mongers accountable. This is a rare and strong stance, indicating how much the false rumors had affected the company.
3. Yearly Performance Decline, with Stock Price Rise Based on Speculation
Zaisheng Technology's actual business situation is not good:
- Net profit has dropped from 249 million yuan in the past five years to 56 million yuan, and non-recurring net profit in 2025 was only 15 million yuan (a 73% decrease year-on-year).
- The gross margin of its "high-efficiency energy-saving materials," which were the subject of speculation, decreased from 24% in 2021 to 12.8% in 2025, making it less profitable.
- Revenue and net profit both declined in the first quarter of 2026, and cash flow is also poor.
In short, the significant increase in the stock price was entirely due to speculation, with no real financial performance behind it, so a drop was inevitable.
4. Diverse Actions by Senior Executives
During the stock price fluctuations, senior executives made different decisions:
- The controlling shareholder, Guo Mao, intended to transfer 6% of his shares for 344 million yuan but canceled the deal on January 5.
- Three deputy general managers announced their intention to sell shares at the end of April and completed the sale on May 27, cashing out approximately 6 million yuan in total. Investors questioned their timing, and the company responded that their actions were compliant and that no one could predict the stock price accurately, though the timing was somewhat suspicious.
5. Retail Investors Flood In, Possibly Becoming the Sufferers
When the stock price was rising, many retail investors bought in. The number of shareholder accounts increased from 59,500 in December last year to 219,400 in the first quarter of this year (more than tripling). Most of these investors entered the market at high prices, and now that the stock price has dropped by nearly 30%, many of them may be trapped. This is a typical scenario where a few people use rumors to drive up the price, and retail investors bear the consequences when it falls.
Conclusion: This stock price drama was essentially fueled by false information. The company's performance was poor, but its stock price was driven by speculation, with retail investors often being the ones who suffer in the end. By taking legal action, the company aims to send a message to the market that spreading false information comes with consequences.