In order to ensure that “all returns should be made”, in addition to issuing a letter of concern or inquiry, the regulatory authorities also supplemented on-site inspection to implement “zero tolerance”.
Local securities regulatory bureaus strengthen the supervision and reminder of listed companies and audit institutions before the disclosure of annual reports.
The audit verification opinions issued by audit institutions have become an important starting point for the supervision of financial delisting.
With the normalization of the delisting mechanism of “export side”, the speculative arbitrage of St sector is declining day by day. Concern is that this year will produce the first delisting companies under the new delisting regulations, and the number of “leaving” companies may be higher than in the past.
Asking questions quickly and deeply shows the strength of the regulatory authorities. The reporter noted that after a group of * ST companies released the annual performance forecast or delisting risk warning announcement in January this year, the Shanghai and Shenzhen Stock Exchange will quickly send a letter of concern or inquiry to relevant companies on the same day or the next day, and even directly ask whether the company has avoided delisting.
\u3000\u3000 “In the previous stage, the centralized issuance of inquiry letters and attention letters to * ST companies should only be the beginning, which can be seen as a clear signal sent by the regulatory authorities. The regulatory authorities have made delisting supervision the top priority of the regulatory line of listed companies this year, and the regulatory authorities at all levels will also concentrate their energy and resources to ensure that they” should retire as much as possible “, achieve” retreat down and stable “, and make every effort to play a good role in delisting Regulatory battle. ” Insiders told reporters that investors must be cautious in their investment in St sector.
“* ST” shell preservation difficulty
At a time when life and death are at stake, in order to win a glimmer of vitality, some * ST companies still try to take the shortcut of protecting the shell by dressing up their performance. In this regard, the regulatory authorities launched a fireline attack, pointing to the problem of “seven inches”.
On the first working day of the year of the tiger (February 7), Bus Online Co.Ltd(002188) , Shenzhen Danbond Technology Co.Ltd(002618) , Lead Eastern Investment Co.Ltd(000673) and other companies received inquiry letters or attention letters from the regulatory authorities for relevant shell preservation matters.
With the assistance of the controlling shareholders, Bus Online Co.Ltd(002188) released its annual report on January 29, showing that the company has turned losses into profits. Thanks to the 100% equity of Zhongtian Meihao service given by the controlling shareholder, Bus Online Co.Ltd(002188) property management revenue accounted for 88.13% of the annual revenue in 2021. Confident Bus Online Co.Ltd(002188) immediately submitted an application to Shenzhen Stock Exchange to revoke the delisting risk warning.
However, the Shenzhen stock exchange sent the annual report inquiry letter to the company and raised 11 sharp questions, among which Bus Online Co.Ltd(002188) is required to explain whether there is a situation of sudden trading at the end of the year to adjust profits or cross period recognition of income, and whether there is a situation of avoiding termination of listing.
Looking at Shenzhen Danbond Technology Co.Ltd(002618) , the company announced on January 29 that it expects the operating revenue to be 110 million yuan to 120 million yuan in 2021. Although the company’s net profit in the same period was still a loss, its revenue crossed the “red line” of 100 million yuan, and its intention to protect the shell was very obvious.
In the face of the “sudden” sharp increase in revenue in the fourth quarter of last year, the latest attention letter of Shenzhen stock exchange requires the company to explain in detail the reasons and rationality of the changes in financial indicators such as operating revenue and net profit in the fourth quarter of 2021, whether the sharp increase in revenue in the fourth quarter is in line with industry laws, and whether there is a situation that the total amount method is used to replace the net amount method to confirm revenue, etc. At the same time, the company is clearly required to explain whether there is a situation of adjusting income to avoid termination of listing. It is worth mentioning that in November 2021, before the preparation of the annual report, Shenzhen Danbond Technology Co.Ltd(002618) due to the imminent change, the audit institution received a letter of regulatory concern.
A total of 321 million yuan of equity and cash assets donated by the actual controller may make the net assets at the end of Lead Eastern Investment Co.Ltd(000673) 2021 positive. The old-fashioned shell protection tactics quickly attracted the attention of the regulatory authorities. Shenzhen stock exchange requires the company to explain whether it is necessary and reasonable for the controlling shareholders to donate assets.
In fact, for a number of “old and difficult” companies in the st camp, the regulatory authorities have always maintained a key focus. On the evening of January 28, Hna Innovation Co.Ltd(600555) released the performance forecast for 2021, in which the expected operating revenue was 109 million yuan to 123 million yuan, just “crossing the line”.
Within less than one hour after Hna Innovation Co.Ltd(600555) disclosed the performance forecast, the Shanghai stock exchange immediately issued an inquiry letter to the company, requiring the company to explain the reasons and rationality of the significant increase in operating revenue in 2021, and fully prompt the possible risk of termination of listing.
some companies are in danger
The financial indicators set by the new delisting regulations are a hard threshold for zombie enterprises. Among them, the life of Chunghsin Technology Group Co.Ltd(603996) and other companies that trigger the financial portfolio delisting standard is hanging on the line.
According to the combined delisting index of “the lower of the net profit before and after deducting non recurring profits and losses is negative and the operating revenue is less than 100 million yuan”, if the annual report of “* ST” company continues to touch the delisting index in 2021, it will be delisted directly. According to the performance forecast released on the evening of Chunghsin Technology Group Co.Ltd(603996) January 17, the net profit of the company in 2021 may be negative, the operating revenue may be less than 100 million yuan, the net assets at the end of the period may be negative, and the delisting alarm has been sounded.
Due to the “face beating” of accounting firms, the way of protecting the shell of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is not optimistic. On January 28, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said while disclosing the performance pre increase announcement that “it has fully communicated with the accounting firm on matters related to the performance pre notice, and there is no difference with the accounting firm on the performance pre notice”. However, to the consternation of the market, the relevant accounting firm said that its “basis for positive net assets is insufficient”.
That night, the Shanghai Stock Exchange issued an inquiry letter to Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , requiring the company to strictly abide by the accounting standards and correct the performance forecast. After correction, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) net assets are expected to be negative. This means that when the 2021 annual report is disclosed, the listing of the company’s shares may be terminated. On February 7, the Shanghai Stock Exchange again issued an inquiry letter, requiring the company to correct the performance forecast as soon as possible and fully remind the risk.
Similarly, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) hovering on the edge of the delisting red line, tested the bottom line of revenue deduction rules with “0 yuan acquisition”. Therefore, the Shanghai stock exchange requires Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) to explain the reasons and rationality of the significant increase in operating revenue in 2021. In the fourth quarter of 2021, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) transferred the relevant equity of yixiangyuan at the price of 0 yuan, which attracted extensive attention from the outside world.
There is no final conclusion whether we can break through the “financial pass”. There is still a “major illegal delisting pass” hanging above Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) . It is disclosed that due to the false increase of income from 2018 to 2019, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) may touch on major illegal compulsory delisting. In addition, in January 2022, because Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and Huang Wei, the actual controller of the company, were suspected of illegal disclosure and non disclosure of important information, the public security organ has filed a case for investigation.
Zhimi delisting “supervision network”
In the view of market participants, 2022 is the key year to practice the normalized delisting mechanism. Under the clear signal of strict supervision, it will be a “useless work” for listed companies to avoid delisting through various means.
By the end of 2021, nearly a year after the release of the new delisting regulations, a total of 27 A-share listed companies had been delisted, including 17 mandatory delisting. At present, nearly 100 companies have been warned of delisting risks by the exchange.
“The ecosystem of capital market entry and exit and survival of the fittest is gradually taking shape. In order to establish a normalized delisting mechanism, the regulatory authorities have set clear work objectives.
”Some market participants told reporters.
The reporter noted that in order to ensure that “all returns should be made”, in addition to issuing a letter of concern or inquiry, the regulatory authorities also supplemented on-site inspection to implement “zero tolerance”. For example, in the inquiry letter issued to Shangying Global Co.Ltd(600146) and Hna Innovation Co.Ltd(600555) companies, the Shanghai Stock Exchange made it clear that if the company is suspected of not deducting the operating income as required to avoid the termination of listing, it will timely request to start on-site inspection and other regulatory measures after the disclosure of the company’s 2021 annual report, and impose disciplinary sanctions on the company and relevant responsible persons. “If, according to the final on-site inspection results, the company touches on the situation of terminating the listing after deducting the relevant impact, the exchange will make a decision on terminating the listing of the company in accordance with the law and regulations.”
In order to compact the “gatekeeper” responsibility of audit institutions, the new delisting regulations also clarify that the audit institutions of annual reports of listed companies need to express special verification opinions on whether the deduction of operating income of listed companies is appropriate. From the delisting supervision of Shanghai Stock Exchange in 2020, the audit verification opinions issued by audit institutions have become an important starting point for financial delisting supervision.
Local securities regulatory bureaus have also strengthened the supervision and reminder of listed companies and audit institutions before the disclosure of the annual report. On January 26, the Shanghai Securities Regulatory Bureau proposed that when conducting the annual report audit in 2021, accounting firms should pay close attention to whether listed companies avoid delisting through major unconventional transactions, including increasing profits through surprise confirmation of asset transactions and government subsidies; A debt relief agreement or asset donation that is obviously lack of commercial rationality and may be attached with preconditions was reached, so as to realize the accurate conversion of net assets.
On January 25, the Beijing Securities Regulatory Bureau held the “2021 annual report supervision meeting of listed companies under its jurisdiction”, which also stressed that listed companies should focus on the new delisting regulations, eliminate the use of accounting methods to adjust and avoid delisting, and should not falsely increase income, adjust profits and thicken net assets by using occasional business.
A virtuous circle capital market needs a healthy mechanism of in and out and the survival of the fittest. It can be predicted that under the background of the comprehensive registration system reform and the continuous irradiation of the strong light of supervision, the “confrontation” between delisting supervision and illegal shell protection this year will be more intense than ever before.
