With the disclosure of the performance forecast of Listed Companies in 2021, the power of financial delisting indicators appears, and companies that touch the delisting standard “surface”. According to the announcement of listed companies, 14 * ST companies are expected to terminate listing due to financial delisting indicators.
To this end, some * ST companies used “financial technology” to protect the shell, which was concerned and inquired by the Shanghai and Shenzhen Stock Exchange. Experts interviewed believe that listed companies mainly protect their shells through debt restructuring, impairment reversal, income regulation, related party transactions and other means. Audit institutions need to focus on the inquiry of the exchange and be a “gatekeeper”; Regulators need to crack down on illegal acts such as financial fraud to avoid delisting.
* ST fancy shell
great responsibility of audit institutions
According to the regulations of the exchange, * ST companies need to release the performance forecast of 2021 before January 31. Companies that have been implemented * ST due to touching the financial delisting indicators in the new delisting regulations also need to issue a risk warning announcement that their shares may be delisted.
According to the incomplete statistics of the announcement of listed companies, since this year, as of February 12, a total of 86 * ST companies have issued the announcement of termination of listing risk. Among them, 14 companies expect that the performance or net assets of 2021 will touch the financial delisting indicators, and the stock probability of the company will be terminated after the release of the annual report.
The reporter further combed and found that among the 86 * ST companies mentioned above, 16 are expected to have a negative upper limit of net profit after deduction, and the upper limit of operating income after deduction is between 100 million yuan and 150 million yuan, which has just crossed the “red line” of shell preservation.
For example, according to the 2021 annual performance pre loss announcement released by Hubei Wuchangyu Co.Ltd(600275) , the company is expected to achieve an operating revenue of 110 million yuan, which is 106 million yuan after deduction. The net profits before and after deduction are – 28.5 million yuan and – 34.5 million yuan respectively, and the net assets are about 8 million yuan, just keeping the shell.
In this regard, the Shanghai stock exchange requires the company to explain the recognition policies and basis of all kinds of income, and explain whether the relevant business of the company is a new trade business, whether the transaction price is fair, and whether there is any situation that has nothing to do with the main business or does not have commercial substance in accordance with the relevant provisions of operating income deduction one by one.
In addition, the Shanghai and Shenzhen Stock Exchange also focused on the conversion of net assets to positive by means of debt exemption and impairment reversal.
For example, Dynavolt Renewable Energy Technology (Henan) Co.Ltd(002684) , Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) are inquired by the exchange.
“The capital market provides brand value and financing convenience for listed companies. Delisting will affect multiple interests, so the company has strong momentum to protect the shell.” Wei Fengchun, chief economist of ChuangJin Hexin fund and director of macro strategy allocation department, said in an interview with Securities Daily that for listed companies, the best way to protect the shell is to improve the operating performance and make the company meet the listing standards again. However, if the company cannot improve its performance in the short term, it may use financial skills and external forces to protect the shell.
“When auditing, accountants need to pay attention to the abnormal financial data of listed companies. They should judge whether the debt exemption and impairment reversal of listed companies are ‘reliable’ according to comprehensive factors and explain them.” Liu Yan, Professor of Peking University Law School and director of the corporate finance and Law Research Center, said in an interview with the Securities Daily that the new delisting regulations have compacted the responsibilities of audit institutions, and audit institutions need to be “gatekeepers”.
* ST company delisting probability increased
experts say stay away from
Under the new delisting regulations, the delisting indicators are clearer, the efficiency is improved, and the implementation is strengthened. Tang Xin, a professor at the Law School of Tsinghua University, said in an interview with the reporter of Securities Daily, “the full implementation of the stock issuance registration system inevitably requires strict implementation, and the market has formed a deterministic expectation.”
In this context, how to protect the legitimate rights and interests of investors has become an important topic. In addition to the possible damage to the interests of the direct holders of relevant stocks, * ST sector investors may also be affected. Experts suggest that ordinary investors need to stay away from such stocks.
Yin Zhongli, deputy director of the Financial Market Research Office of the Institute of finance of the Chinese Academy of Social Sciences, said that the delisting of companies with poor performance is conducive to the long-term and healthy development of the capital market. However, with the delisting of a large number of companies, the st sector is also expected to fall sharply, and the interests of relevant investors may suffer great losses.
Wei Fengchun said, “at present, there are more than 4700 A-share listed companies, including a large number of high-quality enterprises. The companies that have been warned of delisting risk have problems in their business performance, and it is uncertain whether they can improve in the future. Therefore, for ordinary investors, the best way to avoid delisting risk is not to invest in ST shares.”
“For investors with many years of investment experience, the capital market ecology has changed under the registration system. Investors need to deeply realize that the number of delisting companies will increase, * ST company’s delisting risk will increase significantly, and investors need to change their investment concept and don’t speculate on small differences.” Liu Yan said that the formation of a capital market ecology of in and out and the survival of the fittest requires both the company’s objective evaluation of listing and investors’ full expectation of delisting.
crack down on illegal acts
support investors to protect their rights
In recent years, with the promotion of the deep reform of the capital market, the pattern of “large insurance” has been continuously improved. Experts believe that in order to achieve a stable retreat, regulators need to crack down on illegal acts taken to avoid delisting, send a “zero tolerance” signal to the market, repeatedly convey the correct investment concept to investors, and support investors with damaged rights and interests to claim through diversified rights protection mechanisms such as civil litigation.
For regulators, Tang Xin believes that to protect the legitimate rights and interests of investors in delisting, first of all, we should severely punish the performance fraud and false statements to avoid “financial delisting indicators” and the market manipulation to avoid “trading indicators” according to law; Secondly, require listed companies to strengthen risk warning and strictly implement the delisting consolidation system; Thirdly, we need to carry out investor education, tirelessly publicize policies and prompt risks; Finally, support and encourage investors of delisted companies to take up legal weapons and claim compensation through multiple mechanisms inside and outside the judiciary.
Wei Fengchun believes that the delisting process of listed companies will certainly lead to the loss of the interests of some investors. For the regulatory authorities, first of all, we should clarify the “three public” principle, improve the quality of listed companies’ information phi and realize information transparency; Secondly, the regulatory authorities need to crack down on intermediaries and implementers involved in financial fraud of listed companies, so as to improve the deterrence of supervision; Finally, when investors file a civil lawsuit, the regulatory authorities can cooperate with the court and provide professional support.
