The first “1 yuan delisting” stock was born this year.
On March 25, Egls Co.Ltd(002619) share price continued to fall by the limit, closing at 0.68 yuan / share, with a total market value of 1.255 billion yuan. Since March 4, Egls Co.Ltd(002619) share price has been below 1 yuan. From March 4 to 25, the share price has been below 1 yuan for 16 consecutive trading days.
Egls Co.Ltd(002619) announced that after calculation, the daily closing price of the company’s shares is lower than 1 yuan for 20 consecutive trading days, which has touched the relevant trading delisting provisions of the stock listing rules of Shenzhen Stock Exchange (revised in 2022), and the listing and trading of the company’s shares will be terminated by Shenzhen Stock Exchange.
even if the limit rises for four consecutive days, it is difficult to return more than 1 yuan
According to the regulations, if the share price of a listed company is less than 1 yuan for 20 consecutive trading days, the company will face delisting. Based on the closing price of 0.68 yuan / share on Egls Co.Ltd(002619) 25, even if the share price of Egls Co.Ltd(002619) rises continuously in the next four trading days, it is difficult for the company’s share price to return to more than 1 yuan.
According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange (revised in 2022), there is no delisting consolidation period for trading delisting. If the condition of less than 1 yuan for 20 consecutive days is touched, the trading of the company’s shares will be suspended. After the exchange issues the decision to terminate the listing, the shares will be delisted directly.
In other words, next week will be the “closing performance” of Egls Co.Ltd(002619) a-share career.
Since late July 2021, the total number of shareholders of Egls Co.Ltd(002619) has continued to decrease. The data show that on October 29, 2021, the total number of shareholders of Egls Co.Ltd(002619) was about 54700, a decrease of 16000 compared with September 30, 2021.
Since this year, investors have accelerated their flight. Statistics show that Egls Co.Ltd(002619) share price has fallen by 54.67% since 2022.
With the deepening of the reform of the registration system, A-share delisting has gradually normalized. In 2021, four stocks in Shanghai and Shenzhen were delisted because their share prices were lower than their face values. Another dozen stocks were delisted due to continuous losses and other reasons.
On March 23, 2022, the Shanghai Stock Exchange announced the decision to terminate the listing of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) which was also the first compulsory delisting company of A-Shares in 2022 Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) because of financial fraud for two consecutive years in 2018 and 2019, it finally touched the situation of major illegal compulsory delisting.
Haitong Securities Company Limited(600837) pointed out that the delisting rate of A-Shares has accelerated significantly since 2019. The number of delisting companies from 2019 to 2021 was 10, 16 and 20 respectively, with a year-on-year growth rate of 100%, 60% and 25% respectively. The number of delisting companies in these three years alone accounted for 31% of the total number of delisting of a shares.
Haitong Securities Company Limited(600837) believes that the delisting system is an important supporting system for the implementation of the registration system, which helps to ensure that the market ecology under the registration system can realize the self purification of the survival of the fittest and realize the dynamic balance of the number of A-share listed companies.
M & A case of jimaodi
Egls Co.Ltd(002619) formerly known as Julong pipe industry, was listed on A-Shares in September 2011.
From 2014 to 2015, Julong pipe industry planned to increase the acquisition of eigras and make every effort to transform the game field. With the help of a series of capital operations and the popularity of game concept stocks in the secondary market at that time, the company’s share price continued to rise to 15.05 yuan / share, with the highest market value of about 27.7 billion yuan.
In the following two years, the company successively acquired the game industry related assets such as Hangzhou search film and thumb play. Like the acquisition of glass at that time, the transaction was completed at a very high premium, bringing a large amount of goodwill to the listed company.
In July 2017, Julong pipe industry announced that it plans to change its full name and securities abbreviation, saying that the company’s main business has been changed to Internet information services, software services and cultural industries. The changed securities are abbreviated as agoras.
During the commitment period from 2015 to 2018, the game assets acquired by eigras completed their performance, and after the commitment period, the performance changed immediately.
The company’s net profit loss in 2019 was 2.56 billion yuan, deducting non net profit loss of 3 billion yuan, including goodwill impairment of 2.96 billion yuan and bad debt loss of receivables of 79.28 million yuan.
In 2020, after the huge loss in 2019, there was another large loss, and the main reason for the loss was the impairment of goodwill caused by the non-standard performance of many previously acquired companies.
Now, Egls Co.Ltd(002619) said in the latest announcement that in June 2021, the listed company itself no longer operated 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.
Moreover, the financial accounting report of Egls Co.Ltd(002619) 2020 was issued with an audit report that could not express an opinion, so the “delisting risk warning” was implemented from April 30, 2021. In addition, due to the fact that the company was given a negative internal control assurance report in 2020, provided funds to the controlling shareholders or provided external guarantees in violation of the prescribed procedures, and the situation was serious, Egls Co.Ltd(002619) was also implemented with “other risk warning” on the same day.
On November 17, 2021, Egls Co.Ltd(002619) received the advance notice of administrative punishment and market entry ban from the CSRC, pointing out that Agras was suspected of not disclosing the guarantee matters of the holding subsidiary in the semi annual reports and annual reports of 2018 and 2019, and there were major omissions; The company did not disclose the non operational occupation of funds by related parties in the 2019 annual report, with major omissions; The company twice used the false certificate of time deposit account opening and recorded it in the account, resulting in the false increase of other current assets and profits in the 2019 annual report, the first quarter report of 2020, the semi annual report and the third quarter report.
On the evening of January 25, Egls Co.Ltd(002619) disclosed that it is estimated that the annual net profit loss in 2021 will be 756688 million yuan to 114 million yuan. On February 15, the announcement was revised to: it is estimated that the annual net profit loss in 2021 will be 460 million yuan to 562 million yuan. On March 16, Egls Co.Ltd(002619) issued the second revision announcement of the performance forecast, further lowered the performance expectation and revised the annual net loss to 730 million-892 million yuan.
Egls Co.Ltd(002619) in the latest announcement, it was confirmed by the company and the annual audit accountant that the net profit of the company’s performance after the second revision in 2021 was still negative and the operating income was still less than 100 million yuan. The matters that cannot be expressed in the company’s 2020 audit report cannot be eliminated.
