The application of SZSE to resume listing for more than 1000 days (s002260}) was rejected by SZSE on February 16. To make matters worse, the company issued another announcement on the evening of February 17, which was filed for investigation by the CSRC on suspicion of illegal information disclosure.
The full name of Dea General Aviation Holding Co.Ltd(002260) is Dea General Aviation Holding Co.Ltd(002260) . Founded in 1993, it is engaged in the household appliance industry. It has successively cooperated with Sanyo of Japan, JCS of the United States and Toshiba of Japan to gradually establish the industry status of the company. It was listed on the Shenzhen Stock Exchange in 2008. In 2013, the company began to enter the civil aviation field, and took civil aircraft, engines (including parts), airborne equipment and systems as the focus of the company’s development.
However, due to the poor layout of the aviation field, high-level changes, poor management and other reasons, Dea General Aviation Holding Co.Ltd(002260) operation and capital situation are becoming increasingly difficult. The audited net assets of 2017 and 2018 were negative for two consecutive years. The listing of Dea General Aviation Holding Co.Ltd(002260) was suspended on May 15, 2019, and the trading has been suspended for nearly three years.
Meanwhile, the company has been promoting restructuring and trying to resume listing. Now in trouble, Dea General Aviation Holding Co.Ltd(002260) has little hope of re listing.
“Abandoned” by recommended securities companies
In June 2020, Dea General Aviation Holding Co.Ltd(002260) signed an agreement with the Federal Reserve securities to recommend the resumption of listing. In July of that year, Dea General Aviation Holding Co.Ltd(002260) submitted an application for resumption of listing to the Shenzhen Stock Exchange and was accepted.
One and a half years after submitting the application, on February 8, 2022, Dea General Aviation Holding Co.Ltd(002260) announced that the Federal Reserve securities sent a letter to the company saying that there were good reasons to believe that Dea General Aviation Holding Co.Ltd(002260) did not meet the conditions for resumption of listing and would no longer provide recommendation services for the resumption of listing of the company.
The Federal Reserve securities gives three reasons for this. The first is that the company is expected to continue to lose money in 2021, and there is great uncertainty in its ability to continue operating, which has failed to meet the conditions for resumption of listing. The other two points are that Dea General Aviation Holding Co.Ltd(002260) has a lawsuit involving 2.5 billion yuan and there is discord between the company’s reorganization and the introduction of investors.
However, Dea General Aviation Holding Co.Ltd(002260) later replied to the attention letter of the Shenzhen Stock Exchange, insisting that it had the conditions to resume listing.
Dea General Aviation Holding Co.Ltd(002260) said that some conclusions of the Federal Reserve securities did not have objective basis. Since the reorganization of the company, the product structure has been gradually optimized and adjusted, and the business structure has been improved; At the same time, after the new management is selected, the management level will be improved, the operation efficiency will be enhanced, and the profitability of the company will be improved. The company has a sound corporate governance structure and internal control system, and the operation is standardized. There are no false records in the financial and accounting reports.
However, the Shenzhen Stock Exchange’s response completely blocked the road of Dea General Aviation Holding Co.Ltd(002260) re listing and believed that the company did not comply with the provisions of the stock listing rules of Shenzhen Stock Exchange to resume listing.
The Shenzhen Stock Exchange pointed out that according to relevant regulations, after the company’s shares are suspended from listing, the application for resumption of listing of its shares shall be sponsored by the sponsor; The sponsor shall check the authenticity, accuracy and completeness of the application materials for the resumption of listing of the company’s shares, and issue a letter of recommendation for the resumption of listing on whether the company meets the conditions for the resumption of listing. The Federal Reserve securities no longer provides recommendation services for companies to resume listing. Therefore, the listing committee failed to pass the company’s application for resumption of listing.
Doubtful ability to continue as a going concern
Recalling the reason why the Federal Reserve securities terminated the recommendation, the final point is that Dea General Aviation Holding Co.Ltd(002260) does not have the ability of going concern.
From January to September in 2020 and 2021, Dea General Aviation Holding Co.Ltd(002260) net profits attributable to the owners of the parent company before and after deducting non recurring profits and losses, whichever is lower, are -26.9945 million yuan and -24.6929 million yuan respectively. It is expected that the company will continue to suffer losses in 2021, and there is great uncertainty in its ability to continue operating.
In November 2020, Guangzhou rural commercial bank also filed a lawsuit to require the company to assume the obligation to make up the difference with the loan principal, interest, penalty interest and other funds totaling about 2.5 billion yuan. At present, the case is still under trial, and the obligation of the company is still inconclusive and there are major uncertainties.
Although the company has been promoting restructuring, there are signs of discord between the introduced investors Cao Sheng and xuntu education, which has a great adverse impact on the operation of the company.
It is reported that on December 10 last year, 5.56% of the shares held by xuntu education, the major shareholder of the company, were frozen by the judiciary, and the applicant was Cao Sheng, the shareholder. Shortly after that, the company fell into a “dispute over official seal”. The lawyer’s letter transferred by Cao Sheng to the board of directors of the company showed that the official seal of xuntu education, the major shareholder, was under joint management, and the authenticity of the documents issued by xuntu education was in doubt. The internal strife of the company exposed by these disputes caused the dissatisfaction of many investors.
The above reasons for the termination of recommendation by the Federal Reserve securities once caused the Shenzhen Stock Exchange to send a letter of concern on February 8, asking the company to explain.
On February 17, a number of bad news came from the company: being filed for investigation, ordered to rectify, involving litigation, etc.
The 21st Century Business Herald reporter recently consulted the company on the specific matters of the letter Phi violations investigated by the company, but failed to dial the company’s phone as of press time.
Although Dea General Aviation Holding Co.Ltd(002260) was filed for investigation and did not explain the specific reasons, judging from the court summons it received, or there were problems in the previous reorganization allegations.
The announcement shows that Cao Sheng and other four were financial investors introduced during the company’s reorganization in 2020, but the four sued Dea General Aviation Holding Co.Ltd(002260) for concealing major debts during the reorganization and defrauding investors to participate in bankruptcy reorganization, resulting in losses. The case will be heard on March 23.
At the end of January, the first instance judgment of the lawsuit said that Shandong Xinchao Energy Corporation Limited(600777) (600777. SH), Zoje Resources Investment Co.Ltd(002021) (002021. SZ) and Dea General Aviation Holding Co.Ltd(002260) three companies should bear the liability for compensation, and the amount is not low. However, from the perspective of public information, 3 listed companies are planning to jointly appeal, and the final result is still unknown.
In addition to being filed for investigation by the CSRC, Guangdong securities regulatory bureau also issued a document for supervision and ordered Dea General Aviation Holding Co.Ltd(002260) rectification.
Guangdong Securities Regulatory Bureau requires the company to take measures to rectify, fulfill the obligation of information disclosure, conduct internal accountability for relevant responsible personnel, and submit rectification reports and internal accountability.
