The disclosure of the annual report has gradually entered the peak. Coupled with the recent market adjustment, the listed companies with poor annual report performance or the company’s share price hovering around 1 yuan will usher in the “delisting test”.
In 2022, the first A-share delisting company has announced that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) was forcibly delisted due to financial fraud. In addition, Egls Co.Ltd(002619) also locked out of the market in advance because the share price continued to be lower than 1 yuan. Next, with the annual report performance disclosure, there will be more companies “wearing stars and hats” facing delisting risk.
According to the statistics of the reporter of the securities times, since this year, among the companies that have been ST or ST, 70 have disclosed the announcement that the company’s shares may be terminated. Among them, since March, relatively many have issued the announcement that the company’s shares may be terminated. There are 41 companies, 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.
who will be next after Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145)
On March 22, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) issued the announcement of delisting, becoming the first delisted stock in 2022. The company has repeatedly reminded investors that the company’s shares may touch a major illegal forced delisting situation and be terminated from listing.
On the evening of March 2, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) announced that according to the administrative punishment decision of the CSRC, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) inflated income in 2018 and 2019. After retroactive adjustment, the operating income from 2018 to 2020 was less than 10 million yuan for three consecutive years, and the 2020 financial and accounting report was issued with qualified audit report, which touched the index of major illegal compulsory delisting.
Subsequently, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) shares will enter the delisting consolidation period on March 30. There will be no price limit on the first day of the consolidation period. The trading will be delisted after 15 trading days, and then transferred to the National SME share transfer system for share transfer.
At present, in addition to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Xin Jiang Ready Health Industry Co.Ltd(600090) also received the prior notice of administrative punishment from the CSRC for financial fraud. According to relevant facts, the company is also likely to be terminated from listing after receiving the decision.
Xin Jiang Ready Health Industry Co.Ltd(600090) march 26 issued the 22nd announcement that the company’s shares may touch major illegal forced delisting and be terminated from listing. It said that the company received the notice from the China Securities Regulatory Commission on October 24, 2021. According to the notice, the company inflated its net profit from 2017 to 2019. After deducting the inflated net profit, the company’s net profit from 2017 to 2020 was negative for four consecutive years. According to relevant regulations, the company may actually touch the situation of major illegal compulsory delisting.
companies that have announced “possible delisting” since this year
It is worth mentioning that with the annual report performance disclosure of listed companies entering the peak, if the fundamentals have not improved, the delisting pressure is self-evident. According to the statistics of the reporter of the securities times, since this year, 70 companies have issued the announcement of “possible delisting”, and many companies may be delisted 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.
According to the statistics of the reporter of the securities times, most companies touch the warning situation of financial delisting risk in 2020, but it may not be eliminated in 2021. Among them, most companies face 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.
“hat wearing” risk is worthy of vigilance
The disclosure peak of the annual report is approaching, and the operating risk caused by the loss of enterprises is the most common case of being hooded and starred. After the company’s shares are “hooded”, they often continue to fall sharply, and investors need to pay attention to such risks in advance.
According to the rules of the exchange, there are mainly seven cases of being st, involving production and operation, bank account number and other matters, while the cases of being ST are divided into two directions: financial and normative. The financial category involves the company’s net profit, net assets and audit opinions, and the normative category includes information disclosure, changes in share capital and bankruptcy liquidation.
However, from the perspective of the companies currently being ST, they mainly focus on financial risk warnings.
overview of risk warning rules of the exchange
According to the rules of the exchange, if a listed company is expected to be subject to real-time ST for financial reasons, it shall issue a risk warning announcement that its shares may be subject to delisting risk warning within one month after the end of the corresponding accounting year, and issue at least two more risk warning announcements before the disclosure of the annual report.
According to the reporter of the securities times, up to now, 12 non ST and non ST shares have issued announcements that may be subject to delisting risk warning, including Poten Environment Group Co.Ltd(603603) , Huadian Energy Company Limited(600726) , Gi Technologies Group Co.Ltd(300309) , Souyute Group Co.Ltd(002503) , etc.
For example, 6033 announced on March 19 that according to the preliminary calculation of the company’s financial department, the net assets attributable to the shareholders of the listed company by the end of 2021 are expected to be -681013700 yuan to -984013700 yuan, and the company’s shares may be subject to delisting risk warning.
Suna Co.Ltd(002417) 3 announced on March 23 that the company’s financial department estimated (Unaudited) that the net profit attributable to the shareholders of the listed company in 2021 was expected to be a loss of 80 million yuan – 110 million yuan, after deducting non recurring profits and losses, the net profit attributable to the shareholders of the listed company was a loss of 81 million yuan – 111 million yuan, and the estimated operating income was 95 million yuan – 125 million yuan, After deducting the business income irrelevant to the main business and the income without commercial substance, the operating income is 95 million yuan – 125 million yuan.
After the disclosure of the 2021 annual report, the company’s stock trading may be subject to delisting risk warning (the abbreviation of the stock is preceded by ” ST”).
a-share delisting gradually normalized
Since the implementation of the new delisting regulations, ST shares that do not have the ability of sustainable operation are rapidly clearing out of the market.
In 2022, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) became the first delisting company of A-Shares Egls Co.Ltd(002619) because the continuous stock price is lower than 1 yuan, the par value has also been locked in advance for delisting.
Haitong Securities Company Limited(600837) said that in recent years, Chinese regulators have severely punished illegal acts such as financial fraud, and the number of companies delisting due to financial fraud is also increasing. From 2019 to 2021, there were 5, 9 and 10 A-share companies delisting due to financial fraud, showing a gradual increasing trend.
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, 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.
However, in order to avoid the “surprise announcement” of the company’s annual report or delisting, some of the company’s assets were placed in order to avoid the supervision.
Bus Online Co.Ltd(002188) previously disclosed the announcement that the company’s shares “may be delisted” Bus Online Co.Ltd(002188) because the audited net profit in 2020 is negative and the operating income is less than 100 million yuan; Meanwhile, the audited ending net assets in 2020 were negative, and Shenzhen Stock Exchange implemented “delisting risk warning” for the company’s stock trading.
After the disclosure of the financial report in 2021, the company’s shares may be subject to the risk of delisting. Bus Online Co.Ltd(002188) successively issued relevant risk warning announcements on January 18, 2022, January 20, 2022 and January 24, 2022.
However, by virtue of the invested assets, as of December 31, 2021, Bus Online Co.Ltd(002188) ‘s net assets at the end of the period were 515764 million yuan, an increase of 152.72% over the same period of the previous year, avoiding the situation that the net assets were negative for two consecutive fiscal years.
The regulatory annual report inquiry letter was issued immediately, requiring Bus Online Co.Ltd(002188) combined with the duration, production and operation conditions, future business development plan, etc. of various businesses that generate operating revenue in the reporting period.
In the investor interaction platform, Bus Online Co.Ltd(002188) said that the company had submitted an application to Shenzhen stock exchange for canceling delisting risk warning and other risk warnings for the company’s stock trading. The company’s application for canceling delisting risk warning and other risk warnings still needs the approval of Shenzhen Stock Exchange.
Open source securities research pointed out that the promotion of the registration system will continue to accelerate the marginalization trend of tail companies, so as to reduce the resistance to the operation of new delisting regulations. The efficient operation of the delisting system will strengthen the survival of the fittest in the market, in turn provide guarantee for the deepening reform of the registration system, and finally form a positive feedback of the capital market.
