Roman Shares: The company may face risks that new business expansion may not meet expectations

On February 26, Romann Shares (605289.SH) issued an announcement regarding abnormal stock trading fluctuations and risk warning. The company’s stock price closed with a cumulative deviation of over 20% in three consecutive trading days. According to the relevant provisions of the Shanghai Stock Exchange Trading Rules, this constitutes an abnormal fluctuation in stock trading.

In response to the abnormal trading of the company’s stock, the company conducted an investigation into the matter. After self-examination, the company’s production and operation are normal, with no significant fluctuations in production costs or sales. There have been no major changes in the market environment or industry policies. Additionally, after self-checking and confirming through written inquiries with the controlling shareholder, actual controller, and their concerted parties, as of the date of this announcement, the company, controlling shareholder, actual controller, and their concerted parties have no undisclosed material information that should be disclosed. Furthermore, the company has not found any media reports or market rumors that require clarification or response, nor has it identified any other media reports, market rumors, or hot topics that could significantly impact the company’s stock trading price.

The company especially reminds investors to pay attention to related risks. First, the company’s stock price has risen sharply in the short term, deviating significantly from the Shanghai Composite Index and industry indices. The latest price-to-book ratio is substantially higher than that of listed companies in the same industry, indicating a risk of overheated market sentiment and irrational speculation. Second, the company’s controlling subsidiary, Wutong High-tech, was established relatively recently, with a smaller scale of business and lower market share. If future macroeconomic fluctuations, changes in industry policies, or shifts in the competitive environment occur, there may be risks of underperforming in new business development, which could impact the company’s and subsidiary’s future performance with uncertain outcomes.