Egls Co.Ltd(002619) : Egls Co.Ltd(002619) notice on the risk of delisting the company’s shares

Securities code: Egls Co.Ltd(002619) securities abbreviation: Egls Co.Ltd(002619) Announcement No.: 2022017 Egls Co.Ltd(002619)

Notice on the risk of termination of listing of the company’s shares

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

Special risk tips:

At present, the daily closing price of the company’s shares has been lower than 1 yuan for 11 consecutive trading days; Meanwhile, the company’s 2020 audit report is a non-standard audit opinion and some related matters cannot be eliminated. The 2021 audit report will be issued with a non-standard audit opinion. According to the relevant provisions of the stock listing rules of Shenzhen Stock Exchange (revised in 2022), the company’s shares will touch the termination of listing and trading. Please be sure to follow the announcement of the company, invest rationally and pay attention to investment risks.

1. Face value delisting risk

According to the relevant provisions of the stock listing rules of Shenzhen Stock Exchange (revised in 2022), for companies that issue only A-Shares or only B shares in the exchange, the daily closing price of shares for 20 consecutive trading days through the trading system of the exchange is lower than 1 yuan, and the listing and trading of the company’s shares may be terminated by Shenzhen Stock Exchange. As of March 18, 2022, the closing price of the company’s share price is 0.87 yuan, and the closing price of the company’s shares has been lower than 1 yuan for the 11th consecutive trading day. Please keep rational investment and pay attention to investment risks.

2. Financial indicators and types of audit reports delisting risk

On March 16, 2022, the listed company disclosed the second amendment announcement of 2021 annual performance forecast (Announcement No.: 2022014), which was confirmed by the company and the annual audit accountant:

(1) In 2021, the performance net profit of listed companies after the second correction is still negative, and the operating income is still less than 100 million yuan;

(2) At the same time, the company’s 2021 financial report will issue non-standard audit opinions on operating income, accounts receivable, equity transfer, foreign investment, capital occupation and other matters, and the company will be issued with non-standard audit opinions by the annual audit accountant in 2020 and 2021.

According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange (revised in 2022), if the company has one of the six situations specified in article 9.3.11 of the Listing Rules of Shenzhen Stock Exchange (revised in 2022) in 2021, the listing and trading of the company’s shares will be terminated by Shenzhen Stock Exchange. Please keep rational investment and pay attention to investment risks.

3. Business stagnation risk

In June 2021, the listed company no longer operates the original game business, and the relevant game R & D department has been dissolved; At present, the new trading business has also been suspended, and all businesses of the company are at a standstill. Please keep rational investment and pay attention to investment risks.

1、 About the delisting risk warning and other risk warnings of the company’s shares

Egls Co.Ltd(002619) (hereinafter referred to as “the company”) disclosed the announcement on delisting risk warning and other risk warning and suspension of stock trading on April 29, 2021 (Announcement No.: 2021038). The company’s financial and accounting report in 2020 was issued with an audit report that could not express an opinion, which touched the situation specified in article 14.3.1 “(III) the financial and accounting report in the latest accounting year was issued with an audit report that could not express an opinion or negative opinion” of the stock listing rules of Shenzhen Stock Exchange (revised in 2020). The company’s shares were implemented with a “delisting risk warning” from April 30, 2021.

In addition, in 2020, the company was given a negative internal control assurance report, provided funds to the controlling shareholders or provided external guarantees in violation of the prescribed procedures, and the situation was serious, It touches on the provisions of article 13.3 of the stock listing rules of Shenzhen Stock Exchange (revised in 2020) “(IV) the company has been issued an internal control audit report or assurance report that cannot express opinions or negative opinions in the latest year” and “(V) the company provides funds to the controlling shareholder or its affiliates or provides external guarantee in violation of the specified procedures, and the situation is serious”, The company’s shares have been subject to “other risk warning” since April 30, 2021.

2、 Risk warning that the company’s shares may be delisted

1. According to the provisions of article 9.3.11 of the Listing Rules of Shenzhen Stock Exchange (revised in 2022): “in case of any of the following circumstances in the first fiscal year after a listed company is subject to delisting risk warning due to the circumstances in items (I) to (III) of paragraph 1 of article 9.3.1 of these rules, the exchange decides to terminate the listing and trading of its shares:

(I) the audited net profit is negative and the operating income is less than 100 million yuan, or the net profit of the most recent fiscal year after retroactive restatement is negative and the operating income is less than 100 million yuan;

(II) the audited ending net assets are negative, or the ending net assets of the latest fiscal year after retroactive restatement are negative;

(III) the financial accounting report is issued with qualified opinions, unable to express opinions or negative opinions;

(IV) failing to disclose the annual report guaranteed by more than half of the directors to be true, accurate and complete within the statutory time limit; (V) although it complies with the provisions of article 9.3.7, it fails to apply to the exchange for cancellation of delisting risk warning within the specified time limit;

(VI) because it does not comply with the provisions of article 9.3.7, its application for cancellation of delisting risk warning has not been examined and approved by the exchange. “

On October 26, 2021, the company announced the announcement of the resolution of the second (Interim) meeting of the Fifth Board of directors (Announcement No.: 2021084) and the announcement of the resolution of the second (Interim) meeting of the Fifth Board of supervisors (Announcement No.: 2021085). The directors and supervisors of the company gave tips on Relevant Issues in the report of the third quarter of 2021. On November 19, 2021, Shenzhen Stock Exchange issued the guidelines for business handling of listed companies of Shenzhen Stock Exchange No. 12 – matters related to operating income deduction. If one of the above six circumstances occurs in the audit results of the company in 2021 due to the above matters, the listing and trading of the company’s shares will be terminated by Shenzhen Stock Exchange. The company will disclose the risk warning announcement at least twice before the disclosure of the 2021 annual report. 2. On February 15, 2022, the company disclosed the revised announcement of 2021 annual performance forecast (Announcement No.: 2022005), which was confirmed by communication between the company and the annual audit accountant:

(1) The revised performance net profit of Listed Companies in 2021 is still negative, and the operating revenue is still less than 100 million yuan;

(2) At the same time, the company’s 2021 financial report will issue non-standard audit opinions on operating income, accounts receivable, equity transfer, foreign investment, capital occupation and other matters, and the company will be issued with non-standard audit opinions by the annual audit accountant in 2020 and 2021.

According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange (revised in 2022), if the company has one of the six situations specified in article 9.3.11 of the Listing Rules of Shenzhen Stock Exchange (revised in 2022) in 2021, the listing and trading of the company’s shares will be terminated by Shenzhen Stock Exchange. Please pay attention to investment risks.

3. On March 16, 2022, the listed company disclosed the second revision announcement of 2021 annual performance forecast (Announcement No.: 2022014). After further communication with accountants, the revised relevant financial data did not affect the matters that could not be expressed in the company’s 2020 audit report, which could not be eliminated, and the 2021 audit report was thrown into the accounting firm to issue non-standard audit opinions.

4. According to the relevant provisions of the stock listing rules of Shenzhen Stock Exchange (revised in 2022), for companies that issue only A-Shares or only B shares in the exchange, the daily closing price of shares for 20 consecutive trading days through the trading system of the exchange is lower than 1 yuan, and the listing and trading of the company’s shares may be terminated by Shenzhen Stock Exchange. As of March 18, 2022, the closing price of the company’s share price is 0.87 yuan. Please keep rational investment and pay attention to investment risks.

The information disclosure media designated by the company are securities times and cninfo( http://www.cn.info.com.cn. ), all the information of the company is subject to the information published in the above designated media. Please pay attention to the investment risk and invest rationally.

It is hereby announced.

Egls Co.Ltd(002619) board of directors March 18, 2022

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