After Great Wall International Acg Co.Ltd(000835) became the first financial delisting company in 2022, some companies faced delisting risk due to touching financial delisting indicators.
On March 30, March 30, March 30, March 30, March 30, March 30, March 30, March 30, as a number of listed companies that are “hooded” revealed the 2021 annual report, among which, the 2021 annual report was disclosed by a number of listed companies that are “hooded” listed companies, including ‘s Chunghsin Technology Group Co.Ltd(603996) riskwarning announcement that the stock may be delisted.
However, some companies have made great efforts to turn the tide and turn losses into profits in 2021, so as to meet the standard of “taking off the hat” Xinjiang Bai Hua Cun Pharma Tech Co.Ltd(600721) 3 on March 30, it was announced that the company had checked the delisting situation of the exchange item by item against the financial delisting situation of the exchange, and the situation involving delisting risk warning and other risk warnings of the company had been eliminated, and other delisting risk warnings and other risk warnings were not touched.
Institutional analysis points out that the gradual normalization of A-share delisting in recent years 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.
another company faces delisting risk
With the annual report disclosure of listed companies gradually entering the peak period, a group of “hooded” listed companies disclosed the annual report of 2021 on the evening of March 30.
It is worth noting that Chunghsin Technology Group Co.Ltd(603996) , Northeast Electric Development Company Limited(000585) , Xinjiang La Chapelle Fashion Co.Ltd(603157) and other companies also disclosed the risk warning announcement that the company’s shares may be delisted while disclosing their annual reports.
Chunghsin Technology Group Co.Ltd(603996) disclosed that the annual report of 2021 shows that the audited net profit of the company in 2021 is still negative, the operating income is less than 100 million yuan, and the net assets at the end of the period are still negative. Meanwhile, the company’s 2021 financial report continues to be issued with non-standard audit opinions.
According to the rules of the exchange, if the company touches the situation of termination of listing, the trading of the company’s shares will be suspended from March 31, 2022, and the listing of the company’s shares may be terminated by Shanghai Stock Exchange.
If the company’s shares are forced to terminate the listing by Shanghai Stock Exchange, the trading will resume on the next trading day after the expiration of five trading days after the announcement of the decision to terminate the listing, enter the delisting consolidation period, and be marked with “delisting” in front of the stock abbreviation. The delisting period is 15 days.
Chunghsin Technology Group Co.Ltd(603996) because the audited net profit in 2020 is negative, the operating income is less than RMB 100 million, the audited net assets at the end of the period are negative, the financial and accounting report is issued with an audit report that cannot express opinions, and the company’s shares have been warned of delisting risk. In 2021, the company’s finance was still not improved. The annual revenue was only 804200 yuan, the net profit loss was 429 million yuan, the net assets at the end of the period was -2.389 billion yuan, and the financial report of 2021 was issued with non-standard audit opinions.
On March 30, Chunghsin Technology Group Co.Ltd(603996) share price fell by the limit to 0.96 yuan, with a total market value of only 288 million yuan. By the end of 2021, the number of shareholders of the company had 16500, an increase of 4486 compared with the end of the third quarter. Many investors bought the company’s shares in the fourth quarter and gambled on Chunghsin Technology Group Co.Ltd(603996) “taking off the hat”, which may face large losses.
Coincidentally, Xinjiang La Chapelle Fashion Co.Ltd(603157) , Northeast Electric Development Company Limited(000585) , and Xinjiang La Chapelle Fashion Co.Ltd(603157) .
Among them, Xinjiang La Chapelle Fashion Co.Ltd(603157) announced that due to the negative audited net assets in 2020, the company’s A-share shares have been warned of delisting risk by Shanghai Stock Exchange and have not been eliminated yet. The audited net assets in the financial accounting report of 2021 are still negative, and the audit report with qualified opinion is issued by Dahua Certified Public Accountants (special general partnership). According to articles 9.3.12 and 9.3.14 of the Listing Rules of Shanghai Stock Exchange, Shanghai Stock Exchange will suspend the trading of the company’s A-share shares from the date of disclosure of the company’s 2021 annual report, and make a decision on whether to terminate the listing of the company’s shares within 15 trading days after the start date of the suspension of the company’s shares. The trading of A-Shares of the company will be suspended from March 31, 2022.
On March 30, Xinjiang La Chapelle Fashion Co.Ltd(603157) share price fell by the limit to 1.05 yuan, and the total market value of A-Shares fell to 575 million yuan. By the end of 2021, there were 12700 shareholders holding Xinjiang La Chapelle Fashion Co.Ltd(603157) and some investors bought Xinjiang La Chapelle Fashion Co.Ltd(603157) , gambled and delisted during the fourth quarter.
Northeast Electric Development Company Limited(000585) also announced on March 30 that the audited net profit after deducting non recurring profit and loss in 2020 was negative, the operating income was less than 100 million yuan, and the audited net assets at the end of the period were negative. Meanwhile, the net profit after deducting non recurring profit and loss in three consecutive fiscal years in 2018, 2019 and 2020 were negative, and the audit report in 2020 showed that there was uncertainty in the company’s sustainable operation ability, After the disclosure of the 2020 annual report on March 29, 2021, the company’s A-share shares continue to be subject to delisting risk warning ( st) after superposition.
According to the company’s 2021 audit report issued by Zhongshen Zhonghuan Certified Public Accountants (special general partnership), the company’s net profit after deducting non recurring profits and losses in 2021 is negative, the operating revenue is less than 100 million yuan, and the net assets in the period are negative, which touches the situation of stock delisting. The trading of A-Shares of the company has been suspended since the opening of the market on March 31, 2022.
On March 30, Northeast Electric Development Company Limited(000585) fell by the limit to 0.98 yuan, and the total market value of A-Shares fell to 860 million yuan. By the end of 2021, there were 48200 shareholders holding Northeast Electric Development Company Limited(000585) of which 87 were newly added in the fourth quarter.
delisting Xinyi delisting consolidation period fell 70% on the first day
The situation in Russia and Ukraine has improved significantly and improved market risk appetite. Today, A-Shares opened higher all day, and the gem index rose by 4%. Real estate stocks set off a wave of price limit, and securities, building materials and other sectors ushered in a surge.
But on the other side of the market, the delisting Xinyi, which entered the delisting consolidation period today, fell by more than 70% at the opening, and the share price directly fell below 1 yuan. As of the closing, delisting Xinyi fell 72.82% to 0.28 yuan, and the total market value fell to 417 million yuan.
Due to financial fraud, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) involves major illegal forced delisting. The company will trade for 15 trading days during the delisting consolidation period, and the listing will be terminated at the expiration of the trading period. There is no price rise or fall limit on the first trading day, and the daily rise or fall limit is 10% thereafter.
Within five trading days after the expiration of the delisting consolidation period, the Shanghai Stock Exchange will delist the company’s shares and terminate the listing of the company’s shares.
Previously, on March 2, delisting Xinyi received the supervision letter on matters related to the suspension and termination of the listing of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) company’s shares issued by the Shanghai Stock Exchange. It shows that the Shanghai Stock Exchange has issued a prior notice of the intention to terminate the listing of delisting Xinyi shares, and the subsequent decision to terminate the listing of the company’s shares will be made within the specified time according to the review opinions of the listing committee.
On the same day, the delisting Xinyi also issued an announcement to disclose the receipt of the decision on administrative punishment and the decision on banning market entry by the CSRC.
According to the decision on administrative punishment, there are false records in the annual reports of delisting Xinyi in 2018 and 2019:
Including inflated operating revenue of 133854 million yuan and total profit of 1.2911 million yuan in 2018, accounting for 100% of the disclosed operating revenue and 5.24% of the absolute value of total profit in the current year;
Falsely increased the operating revenue of 5.7236 million yuan, non operating revenue of 75.9 million yuan and total profit of 792482 million yuan in 2019, accounting for 55.13% and 253.78% of the disclosed operating revenue and total profit of the current year respectively.
a-share delisting gradually entered normal
After the new delisting rules, the normalized delisting mechanism of A-Shares is gradually taking shape. Since 2019, the delisting rate of A-Shares has accelerated significantly. From 2019 to 2021, the number of delisting companies were 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 delisting number of a shares.
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.
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.
According to the rules of the exchange, if a listed company’s shares are delisted, it shall make an announcement in advance before the financial report is announced. The reporter of the securities times also combed the companies that issued relevant announcements this year.
center / center
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.
