$China Tianrui Cement (01252)$

The fabricated story goes something like this:

In 2011, Tianrui was listed in Hong Kong, and its stock price was lukewarm. In the second half of 2017, Boss Muzi began manipulating the stock himself, driving the price above 5 yuan and maintaining a P/E ratio far higher than that of Conch Cement and China National Building Material. Since its main business is concentrated in Henan Province, its largest clients by usage are Henan Jianye, Country Garden, and Evergrande Real Estate. The current situation of these three companies is already an open secret, resulting in billions of receivables in 2023 going unanswered. Subsequently, new residential construction in Henan has dropped to less than one-third of previous years, and various government infrastructure projects have basically halted.

The glamorous facade of Boss Muzi's stock manipulation could no longer be sustained, forcing him to choose the most extreme solution: leveraging the remaining financial support for upstream real estate companies to secure an additional 10 billion yuan in loans, then siphoning off funds through methods like prepayments. The company's CFO had no idea how to explain the annual report, so they simply didn’t.

(By the way, this isn’t the first time Boss Muzi has hollowed out a listed company and let it delist.)

Then, yesterday, the bomb dropped. The stock price plummeted 90% from 5 yuan in a straight line. Some naive investors refused to believe it could fall further and bought the dip—only for it to drop another 90%. Others still didn’t believe it could go lower and bought again. Fortunately, the market closed. I also don’t believe it will fall further because the company announced a temporary trading halt.

Unless something unexpected happens, 01252 will remain suspended until delisting. Trust Boss Muzi—he will absolutely not return the 10 billion yuan. In his playbook, the stock code 01252 has already fulfilled its historical mission.