In 2022, the first major illegal compulsory delisting stock appeared!
On March 2, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) announced that it had recently received the decision on administrative punishment from the CSRC. According to the facts identified in the decision and the company’s 2020 annual report, there are false records in Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 2018 and 2019 annual reports. After retroactive adjustment, the company’s operating revenue for three consecutive fiscal years from 2018 to 2020 is less than 10 million yuan.
Source: Shanghai Stock Exchange
That night, the Shanghai Stock Exchange promptly issued a regulatory work letter and a notice of intention to terminate the listing to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and the trading of the company’s shares was suspended from the opening on March 3. The Shanghai Stock Exchange said that the financial indicators of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 20182020 have actually touched the situation of major illegal compulsory delisting stipulated in the original measures for the implementation of major illegal compulsory delisting of listed companies of Shanghai Stock Exchange. According to relevant rules, the Shanghai Stock Exchange will implement major illegal compulsory delisting of its shares in accordance with the stock listing rules of Shanghai Stock Exchange.
It is reported that the Shanghai Stock Exchange will make a decision to terminate the listing of shares within 15 trading days after the suspension of trading of the company’s shares.
financial fraud is subject to major illegal compulsory delisting
A letter of decision on administrative punishment announced the final fate of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) will be forcibly delisted.
On March 2, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) announced that it had recently received the decision on administrative punishment from the CSRC. The CSRC found that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) had two illegal facts: false records and major omissions.
In terms of false records, there are false records in Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 2018 and 2019 annual reports. Specifically, the company falsely increased its operating revenue of 133854 million yuan and total profit of 1.2911 million yuan in 2018, accounting for 100% of the disclosed operating revenue and 5.24% of the absolute value of total profit in that year; Falsely increased the operating revenue, non operating revenue and total profit of 2019 by 5.7236 million yuan, 75.9 million yuan and 792482 million yuan, accounting for 55.13% and 253.78% of the disclosed operating revenue and total profit respectively.
After retroactive adjustment, the operating income of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) i 2018 and 2019 was less than 10 million yuan for two consecutive years, and the profit was turned into loss in 2019. In 2020, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) only achieved a revenue of 3.4587 million yuan, which means that the company’s operating revenue was less than 10 million yuan for three consecutive years in 2018, 2019 and 2020, which has touched the situation of major illegal compulsory delisting.
In fact, as early as last October, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) had received the notice of administrative punishment from the CSRC. At that time, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has indicated in the announcement that it may touch the major illegal delisting situation that the operating income is less than 10 million yuan in three years. Since then, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) according to relevant regulations, disclose the risk warning announcement that the listing may be terminated in case of major illegal compulsory delisting every five trading days. As of February 26, the company has made public announcements of delisting risks.
According to relevant rules, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) should start to suspend trading when receiving the decision on administrative punishment. Because the company did not issue the announcement of applying for suspension, the Shanghai Stock Exchange suspended the trading of ST Xinyi company’s shares, and the subsequent stock exchange will make a decision to terminate the listing of the company’s shares within the specified time according to the review opinions of the listing committee.
investors who have not quit
there are also trading opportunities in delisting consolidation period
Public information shows that over the years, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) main business has become empty shell, corporate governance is chaotic, and violations have occurred frequently.
For example, the audit opinions of the company’s annual reports over the years are non-standard opinions such as qualified opinions, and the accountants question the authenticity of the company’s income, the occupation of funds by related parties, the ability of sustainable operation and other matters. Since 2015, the company and relevant responsible persons have been administratively punished by the CSRC for 3 times and disciplined by the Shanghai stock exchange for 5 times. Violations include failure to disclose regular reports such as 2018 and 2019 annual reports within the statutory time limit, and non disclosure of major issues such as major debts, related party transactions and related party guarantees. At present, Huang Wei, the actual controller of the company, has been banned from the market. Tacheng Public Security Bureau has filed a case for investigation on the crime of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Huang Wei suspected of illegal disclosure and non disclosure of important information.
The reporter read the company’s early announcement and found that the Shanghai Stock Exchange paid close attention to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) for a long time and frequently sent letters to inquire about the company. According to the data, since 2018, the Shanghai Stock Exchange has sent about 50 inquiry letters to the company, including about 10 inquiry letters on the post audit of periodic reports, which have repeatedly reminded the market that there are significant risks in the authenticity of the company’s business and capital transactions.
Faced with the chaotic fundamentals of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , investors have long voted with their feet. Since October 22, 2021, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) share price has fallen by 52.09%. As of the closing on March 2, the lowest share price in the two cities of A-Shares is Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , and the latest closing price is 1.03 yuan / share (excluding the suspended shares).
According to the data, by the end of September 2021, the total number of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) shareholders was 24087. It is worth noting that for investors who need to exit before delisting, the rules give 15 trading days of delisting and finishing trading opportunities, and the delisting will be officially delisted upon expiration.
cracking down on financial fraud
In July 2021, the general office of the CPC Central Committee and the general office of the State Council issued the opinions on strictly cracking down on illegal securities activities according to law, which clearly pointed out that illegal acts such as false statements and financial fraud should be investigated and dealt with strictly, quickly and severely according to law. The administrative punishment of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) this time once again demonstrates the CSRC’s firm attitude of “zero tolerance” against financial fraud, which is of great significance to optimize the allocation of resources and protect the legitimate rights and interests of investors.
A senior market expert said that as early as November 2018, the Shanghai and Shenzhen Stock Exchange issued the measures for the implementation of major illegal compulsory delisting of listed companies, which defined four major illegal delisting situations, namely, fraudulent issuance of initial listing, fraudulent issuance of reorganization listing, fraud of annual report to avoid delisting and other situations recognized by the exchange. Then, in the delisting system reform in 2020, the delisting standard of “amount of fraud + proportion of fraud” was added on the premise of retaining the original major illegal delisting standard. The major illegal delisting rule system is becoming more and more mature, which has a very obvious signal to crack down on financial fraud.
“In this context, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) is still committing crimes against the wind, trying to increase business income and avoid financial delisting indicators by constructing businesses such as trade, leasing and property management. The above illegal acts of financial fraud seriously disrupt the market order and damage the rights and interests of investors. It is suggested that investors can rationally claim shareholders’ rights through legal channels.” The above experts said.
In the view of the industry, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) will be forcibly delisted by the exchange in violation of major laws, which fully shows the determination of the regulatory authorities to practice the policy of “system construction, non intervention and zero tolerance”, firmly maintain the seriousness and authoritative regulatory attitude of the delisting system, and “retreat as much as possible” for companies that seriously disrupt the market order and touch the delisting situation.
