Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) ‘s A-share tour is coming to an end.
On the evening of March 22, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) announced that the Shanghai Stock Exchange decided to terminate the listing of the company’s shares, and Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) also became the first A-share delisting company in 2022. Subsequently, the company’s shares will enter the delisting consolidation period from March 30. There is no price limit on the first day of the consolidation period, and the trading will be delisted after 15 trading days.
Source: Announcement
According to the facts found out in the previous decision on administrative punishment of the CSRC, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 2018 and 2019 were two consecutive years of financial fraud. After retroactive adjustment, the company’s operating income was less than 10 million yuan for three consecutive fiscal years from 2018 to 2020, and finally hit a major illegal compulsory delisting situation.
In addition to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Xin Jiang Ready Health Industry Co.Ltd(600090) has also sounded the mandatory delisting alarm. A number of financial delisting companies are expected to appear this year. In January 2022, January 2022, January 2022, January 2022, January 2022, January 2022, January 2022, January 2022, after the Shanghai Board Companies in the Shanghai stock market released the performance pre notice. After the performance pre notice of the performance notice from the companies in the Shanghai board of the Shanghai board of the Shanghai board of the Shanghai board of the Shanghai board of the Shanghai stock market in the January of January, January 2022, January 2022022, January 2022022, January 202202202following the January January 2022, January 202following the January 202202january January, January 202202202202202following the January 202following the release of the performance pre notice from the performance notice of the companies in the Shanghai board of the Shanghai board of the Shanghai board of the main board of the Shanghai board of the Shanghai board of the first year of January, and the Poten Environment Group Co.Ltd(603603) Poten Environment Group Co.Ltd(603603) Chunghsin Technology Group Co.Ltd(603996) 0399 Chunghsin Technology Group Co.Ltd(603996) Chunghsin Technology Group Co.Ltd(603996) Chunghsin Technology Group Co.Ltd(603996) Duzhe Publishing&Media Co.Ltd(603999) 96 financialcompulsory delisting. In addition, many companies have been questioned to avoid delisting suspicion, and there is also delisting risk.
trigger “annual report fraud to avoid delisting”
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) was delisted due to major illegal delisting. What are the specific circumstances applicable to major illegal delisting?
The delisting system newly revised and implemented in December 2020 specifically includes five major illegal delisting situations of securities, namely, fraudulent issuance of initial listing, fraudulent issuance of reorganization listing, annual report fraud to avoid delisting, the quantitative index of major financial fraud delisting of “fraud amount + fraud proportion” and other situations recognized by the exchange Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) this is the case of triggering “annual report fraud to avoid delisting”.
According to the illegal facts found out by the CSRC, the actual operating income of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) 2018 and 2019 was less than 10 million yuan. Meanwhile, the company’s operating income in 2020 was 3.4587 million yuan. The actual operating income of the company has been less than 10 million yuan for three consecutive fiscal years, and the financial and accounting report of 2020 has been issued with qualified audit report.
According to the relevant provisions of the Shanghai Stock Exchange, after the new delisting regulations come into effect, the company that receives the prior notice of administrative punishment from the CSRC and may touch the situation of major illegal compulsory delisting has actually touched the situation of major illegal compulsory delisting specified in the implementation measures for major illegal compulsory delisting of the original listed company according to the facts identified in the subsequent decision on administrative punishment, The Shanghai Stock Exchange will implement major illegal compulsory delisting of its shares.
Therefore, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) because its revenue is less than 10 million yuan for three consecutive years, it no longer meets the listing conditions at that time, and there is no doubt that it has touched on major illegal delisting.
Some market experts said that the transition period arrangement of the new delisting regulations is to lock in the companies that should have been delisted but did not delisted through financial fraud to avoid the target of terminating the listing at that time. On the one hand, they return to the original facts, and on the other hand, they also reflect the severe crackdown of supervision on financial fraud.
investors who have not yet exited still have trading opportunities in delisting consolidation period
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) forced delisting due to financial fraud is not without warning.
On January 18, 2021, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) was filed for investigation by the CSRC. On October 22, 2021, the company announced that after receiving the prior notice of administrative punishment from the CSRC, the company has committed illegal acts of financial fraud such as falsely increasing its operating income, which may involve major illegal compulsory delisting. Since then, the company disclosed the progress of relevant matters every five trading days, and gave special risk tips on the possible implementation of major illegal compulsory delisting of the company’s shares. As of March 2, 2022, the company has received the letter of decision on administrative punishment, and the company has issued 18 risk warning announcements that the company’s shares may touch major illegal compulsory delisting and be terminated from listing.
At the same time, over the years, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) main business has become empty shell, corporate governance has been chaotic, and violations of laws and regulations have occurred frequently. 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 already voted with their feet. From October 22, 2021 to March 2, 2022 (the trading of the company’s shares has been suspended since the opening on March 3), Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) share price has fallen by 52.09% in total.
According to wind 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.
Although the company faces delisting, accountability will not stop. Some legal experts told reporters that investors who have suffered losses due to illegal information disclosure such as false statements on Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) can actively seek compensation from the company and its annual audit institution Shenzhen Tangtang accounting firm through judicial channels, and can entrust the investor protection institution to participate in the lawsuit as a representative.
Xin Jiang Ready Health Industry Co.Ltd(600090) may also be subject to major illegal compulsory delisting
After Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Xin Jiang Ready Health Industry Co.Ltd(600090) is likely to face the same outcome.
In October 2021, Xin Jiang Ready Health Industry Co.Ltd(600090) disclosed that it had received the notice of administrative punishment and market prohibition from the CSRC. According to the prior notice, the company falsely increased the net profit of 701 million yuan, 608 million yuan and 299 million yuan by fictitious sales and procurement business from 2017 to 2019, accounting for 120.65%, 107.61% and 226.52% of the net profit disclosed in the current period respectively. The actual net profit of the company from 2017 to 2019 was negative. Considering that the net profit disclosed by the company in 2020 is negative, the net profit of the company is actually negative for four consecutive years. If the facts identified in the subsequent administrative punishment decision of the CSRC are the same as those in the prior notice, according to the rules, the company will touch a major illegal compulsory delisting.
In addition, Xin Jiang Ready Health Industry Co.Ltd(600090) may also touch the delisting of transaction and finance. As of March 22, the closing price of the company’s stock was 1.03 yuan. For a long time, the company’s stock continues to struggle on the edge of delisting of 1 yuan. In addition, the company was unable to express its opinion because the 2020 financial and accounting report was issued, and the delisting risk warning of the stock continued to be implemented. If the 2021 annual report touches any financial index again, it will be delisted after the disclosure of the annual report. A senior financial expert said that since the company is unable to express its opinions and the matters involved have not been eliminated, the probability of the company will touch the financial delisting, and the cross application of financial indicators will greatly reduce the space to avoid delisting.
Since the implementation of the new delisting regulations, the normalized delisting mechanism is gradually taking shape, the concept of “retreat as much as possible” has been fully recognized, and a new market ecology of “in and out and survival of the fittest” has been gradually constructed. At the same time, as the export of the capital market is becoming more and more smooth, investors should also adjust their investment philosophy in time and abandon the trend of speculation, otherwise they are likely to face heavy losses.
