The first delisting stock of A-Shares is scheduled in 2022.
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. The trading of the company’s shares will resume on March 30 and enter the delisting consolidation period, which is 15 trading days. It means that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) will become the first delisting share of A-Shares in 2022.
That night, Yihua Healthcare Co.Ltd(000150) also sounded the delisting alarm, which warned in the announcement that if the audited ending net assets of the company in 2021 were negative, the delisting risk warning might be implemented for the company’s stock trading.
In addition, since this year, Xin Jiang Ready Health Industry Co.Ltd(600090) , Xinjiang La Chapelle Fashion Co.Ltd(603157) , Easy Visible Supply Chain Management Co.Ltd(600093) , Huaxun Fangzhou Co.Ltd(000687) , Great Wall International Acg Co.Ltd(000835) , Chunghsin Technology Group Co.Ltd(603996) , Baotou Tomorrow Technology Co.Ltd(600091) and other listed companies have also disclosed the risk warning announcements of stock delisting for many times. The shares of these companies have touched on a variety of delisting situations and the delisting risk is high.
2022 the first delisted stock was born
On the evening of March 22, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) announced that the company received the decision on terminating the listing of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) shares from Shanghai Stock Exchange on March 22, 2022, and Shanghai Stock Exchange decided to terminate the listing of the company’s shares.
The decision to terminate the listing shows that according to the facts identified in the decision on administrative punishment (No. [2022] 4) of the CSRC, it is found that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) falsely increased the operating revenue and total profit of RMB 133854 million and RMB 1.2911 million in 2018, accounting for 100% of the disclosed operating revenue and 5.24% of the absolute value of the total profit in the current 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 deducting the falsely increased operating income, the actual operating income of the company for three consecutive fiscal years in 2018, 2019 and 2020 was less than RMB 10 million, and the financial and accounting report of 2020 was issued with qualified audit report.
Therefore, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) the above-mentioned financial fraud led to the fact that the company’s financial indicators from 2018 to 2020 have actually touched the terms of major illegal compulsory delisting stipulated in the original measures for the implementation of major illegal compulsory delisting of listed companies on Shanghai Stock Exchange.
In fact, as early as March 2, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) once announced the delisting warning. At that time, the company received the administrative punishment decision of the CSRC. Due to the false increase of income in 2018 and 2019, after retroactive adjustment, the operating income was less than 10 million yuan for three consecutive years from 2018 to 2020, which touched the mandatory delisting index of major violations, and will enter the delisting procedure.
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) facilitates the suspension of trading from March 3. According to relevant regulations, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) shares will resume trading on March 30 and enter the delisting consolidation period, which is 15 trading days. Within 5 trading days after the expiration of the delisting period, the Shanghai Stock Exchange shall delist the company’s shares and terminate the listing of the company’s shares.
chairman fined 12 million yuan
That night, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) disclosed the decision on administrative punishment issued by the CSRC. Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) had problems such as false records and major omissions. The means of financial fraud were bad and the amount involved was large.
The CSRC pointed out that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) Huang Wei, then chairman, chief financial officer and Secretary of the board of directors, was the person in charge directly responsible for the above violations; As the supervisor of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) at that time and the legal representative of the subsidiary Yiyuan Huijin, Li Yong is the person directly responsible for the above illegal acts of information disclosure. At the same time, Huang Wei, the actual controller of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has organized and instructed Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) to carry out illegal information disclosure through various means, and his behavior has constituted the situation described in paragraph 3 of Article 193 of the securities law of 2005 and paragraph 2 of article 197 of the securities law.
Therefore, it is decided to give a warning to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and impose a fine of 8 million yuan; Huang Wei was given a warning and fined 12 million yuan. Li Yong was given a warning and fined 3 million yuan. Meanwhile, Huang Wei and Li Yong were banned from entering the securities market for life.
On January 14, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) received the notice of filing a case from Xinjiang securities regulatory bureau. Tacheng Public Security Bureau informed Xinjiang securities regulatory bureau that the case of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and the actual controller Huang Wei suspected of illegal disclosure and non disclosure of important information, which Tacheng Public Security Bureau believed met the filing standard, and has been filed for investigation.
In addition to financial fraud, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has long been notorious in A-Shares and was once known as the most tenacious “nail household” of a shares. It experienced a 54 month suspension from December 7, 2015 to June 29, 2020, once setting the longest suspension time record in the history of Chinese securities.
Behind the long-term suspension is the competition for the interests of management and minority shareholders. On November 16, 2015, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) due to heavy liabilities and serious lack of debt repayment funds, plans to introduce investors to obtain debt repayment funds.
The restructuring plan given by major shareholders shows that it is planned to increase 1.113 billion shares with capital reserve, which will be transferred by 11 investors with a payment of 1.447 billion yuan, which will be used to pay off the company’s debts.
As soon as the plan came out, it was strongly opposed by minority shareholders. Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) ‘s reorganization plan was voted against by 70.05% and 64.65% respectively, and was rejected twice.
The anxious major shareholder applied to the Tacheng intermediate court of Xinjiang for “compulsory Adjudication”, which was quickly approved. The minority shareholders did not compromise and chose to appeal to the Xinjiang High Court. The ruling of the Xinjiang High Court was delayed again and again, resulting in a suspension of trading for up to 54 months.
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) ‘s “shell protection” road is also extremely difficult. Looking back on 2011, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) ‘s operating profit has suffered losses for 10 consecutive years.
However, the company frequently used non recurring profits and losses to avoid the delisting red line of “loss for three consecutive years” of net profit. Under the background of 10-year loss of operating profit, the key assessment index of delisting: net profit, but there has never been loss for three consecutive years.
According to the announcement disclosed by the CSRC, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) “shell protection” is behind the means of falsely increasing income and financial fraud. Finally, it touches the major illegal compulsory delisting provisions and enters the procedure of terminating the listing.
