The first financial delisting company emerged during the year.
After Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) became the first company involved in major illegal delisting during the year and Egls Co.Ltd(002619) delisted in advance, on March 28, Great Wall International Acg Co.Ltd(000835) announced that the company had received the “prior notice” issued by the Shenzhen Stock Exchange, and the company’s shares touched the situation of the termination of listing of financial stocks of the Shenzhen Stock Exchange. Before the exchange makes a decision, the company may apply for a hearing.
It should be noted that with the disclosure of annual reports of listed companies entering the peak period, companies that have touched the warning of financial delisting risk may face greater delisting pressure if their performance has not improved in 2021.
Institutional analysis believes that in the past, the number of delisting of A-Shares was small and mostly active, resulting in the occupation of listing resources. In recent years, A-share delisting has gradually normalized, and “zero tolerance” has been implemented for financial fraud and other acts. The delisting system matches the comprehensive registration system to speed up the metabolism of a shares.
the first financial delisting company in years emerged
On March 25, Great Wall International Acg Co.Ltd(000835) released the annual financial report for 2021, which showed that the audited net profit of the company in 2021 was -453595400 yuan, the operating income was 2371200 yuan and the net assets were -1033822000 yuan. In addition, the accounting firm issued an audit report with no opinion on the annual financial and accounting report of the company in 2021.
This is the first annual report of Great Wall International Acg Co.Ltd(000835) stock trading after delisting risk warning was implemented. The report shows that the audited net profit of the company is negative and the operating income is less than 100 million yuan, the audited net assets at the end of the period are negative, and the financial and accounting report of the company has been issued an audit report with no opinion by the accounting firm. The company touches on the situation of stock delisting stipulated in article 9.3.11 of the stock listing rules (revised in 2022) of Shenzhen Stock Exchange.
According to the reporter of the securities times, at present, Great Wall International Acg Co.Ltd(000835) is the first company that may be delisted due to financial delisting indicators during the year. Shenzhen Stock Exchange has issued the “prior notice”, and the company has the right to apply for a hearing before the exchange makes a decision.
Great Wall International Acg Co.Ltd(000835) will be suspended from March 25, 2021. After receiving the notice of termination of listing, the company may apply for a hearing, make statements and defend in accordance with the provisions. The Shenzhen Stock Exchange shall be deliberated by the Listing Committee on whether to terminate the listing of the company’s shares, and make a decision on whether to terminate the listing of the company’s shares according to the examination opinions of the listing committee.
If the Shenzhen stock exchange decides to terminate the listing of the company’s shares, the trading shall be resumed on the next trading day after five trading days from the date when the Shenzhen Stock Exchange announces the decision to terminate the listing of the company’s shares, and the trading shall enter the delisting consolidation period. During the delisting consolidation period, the company’s securities code remains unchanged, and the stock abbreviation is preceded by the withdrawal logo to enter the risk warning board trading. The trading period of delisting consolidation period is 15 trading days.
Great Wall International Acg Co.Ltd(000835) because the audited net profit attributable to the shareholders of the listed company before and after deducting non recurring profits and losses in 2020 is negative, the operating income after deducting business income irrelevant to the main business and income without commercial substance is less than 100 million yuan, the audited net assets at the end of the period are negative, and the annual financial and accounting report of the company in 2020 is an audit report with no opinion issued by the accounting firm; Meanwhile, the opinion type of the company’s internal control audit report in 2020 is negative, the lower of the company’s net profit before and after deducting non recurring profits and losses in the last three fiscal years is negative, and the audit report of the last year shows that there is uncertainty in the company’s sustainable operation ability. Since April 30, 2021, Shenzhen Stock Exchange has implemented “delisting risk warning” for the company’s stock trading and superimposed “other risk warning”.
Great Wall International Acg Co.Ltd(000835) previously, it was also a bull stock in the A-share market. During the bull market in 2015, the company’s share price once soared to nearly 25 yuan, but since the end of 2015, the company’s share price has continued to fluctuate and fall, and the lowest price fell to 1.04 yuan on March 24, with a decline of more than 90%.
As of December 31, 2021, the company still has 27300 shareholders. Among them, the largest shareholder is continental Entertainment Co., Ltd., which holds 14.12% of the shares of the company. China Greatwall Technology Group Co.Ltd(000066) Asset Management Co., Ltd. became the third largest shareholder of the company in the fourth quarter of 2021, accounting for 3.98%.
companies or financial delisting indicators
According to the financial delisting under the new delisting regulations, after the delisting risk warning is implemented for the company’s financial non-compliance in the first year, if the financial indicators still do not meet the standards in the second year, it will be forcibly delisted. This means that “shell” and “zombie” enterprises only need two fiscal years from identification to delisting, and 2022 will be a year in which the effectiveness of the new delisting regulations will be concentrated.
According to the statistics of the reporter of the securities times, since this year, 70 “star wearing and hat” companies have issued the announcement that they may be terminated from listing. Many companies may be terminated from listing due to continued losses in performance. Among them, there are relatively many companies that have disclosed the announcement of “possible delisting” since March, including Ccoop Group Co.Ltd(000564) , Easy Visible Supply Chain Management Co.Ltd(600093) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Shanghai U9 Game Co.Ltd(600652) , Yunnan Jinggu Forestry Co.Ltd(600265) , etc. (for details, please click: attention to 200 million shareholders! The delisting risk of these A-share companies is high. Please “lightning protection” (list) in advance)
Most companies hit the warning situation of financial delisting risk in 2020, but it may not be eliminated in 2021. Among them, most companies are facing delisting risk due to continuous losses or negative net assets.
For example, Shanghai U9 Game Co.Ltd(600652) 3 announced on March 26 that the audited net profit of the company in 2020 was negative and the operating income was less than 100 million yuan, and the company’s shares had been treated with “delisting risk warning”. According to the preliminary calculation of the company’s financial department, the company’s performance in 2021 will continue to suffer losses, and the operating income is less than 100 million yuan. According to relevant regulations, the company’s shares will face the risk of being delisted.
Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) also announced on March 26 that according to the preliminary calculation of the company’s financial department, the net profit attributable to the company’s shareholders in 2021 was – 5.4 billion yuan to – 7.2 billion yuan; The net profit attributable to the shareholders of the company after deducting non recurring profits and losses is – 1.6 billion yuan to – 2.1 billion yuan; As of December 31, 2021, the net assets attributable to the shareholders of the company were – 5.9 billion yuan to – 7.8 billion yuan. The company’s shares may be delisted after the disclosure of the 2021 annual report.
diversified delisting shows its power
Since the implementation of the new delisting regulations, the number of types of delisting cases has been increasing, and the power of diversified delisting has emerged.
In addition to financial index delisting companies, Egls Co.Ltd(002619) has also locked the face value delisting in advance.
As of March 24, the closing price of Egls Co.Ltd(002619) shares was 0.72 yuan, which was lower than 1 yuan for the 15th consecutive trading day. According to the calculation, even if the daily limit is reached for the next five trading days, Egls Co.Ltd(002619) share price is still lower than 1 yuan, thus touching the delisting rule that the closing price is lower than 1 yuan for 20 consecutive trading days
In addition, major illegal forced delisting shows its power. On March 22, the Shanghai Stock Exchange announced that it had decided to terminate the listing of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) company. According to the administrative punishment decision 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 actual operating income of the company was less than 10 million yuan for three consecutive fiscal years from 2018 to 2020, which touched on major illegal compulsory delisting, becoming the first delisting company of A-Shares in 2022.
Haitong Securities Company Limited(600837) said that in the past, the A-share delisting system was not perfect, the setting of delisting indicators was unreasonable, and the delisting process was long and inefficient, resulting in the inability to effectively clear out the companies that should have been delisted. These companies were gradually marginalized, resulting in a large number of small market value companies, occupying valuable market resources. In recent years, A-share delisting has gradually normalized, with “zero tolerance” for financial fraud and other acts, and A-share delisting has gradually normalized.
Haitong Securities Company Limited(600837) further pointed out 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, realize the dynamic balance of the number of A-share listed companies, alleviate the capital pressure brought by the issuance of listed companies to the market, and also help to optimize the resource allocation function of the capital market.
