another three A-share companies are on the verge of delisting
On March 30, Chunghsin Technology Group Co.Ltd(603996) ( Chunghsin Technology Group Co.Ltd(603996) ), Xinjiang La Chapelle Fashion Co.Ltd(603157) ( Xinjiang La Chapelle Fashion Co.Ltd(603157) ) and Northeast Electric Development Company Limited(000585) ( Northeast Electric Development Company Limited(000585) ) disclosed the 2021 annual report and the risk warning announcement that the listing may be terminated. There are some differences among the three stocks in the situation of delisting. Among them, Chunghsin Technology Group Co.Ltd(603996) announced that its audited net profit in 2021 was negative, its operating income was less than 100 million yuan, its audited net assets at the end of the period were negative, and the financial and accounting report was issued with an audit report that could not express an opinion Xinjiang La Chapelle Fashion Co.Ltd(603157) also announced that its audited ending net assets in 2021 were negative, and the financial and accounting reports were issued with qualified audit reports Northeast Electric Development Company Limited(000585) said that the company’s net profit after deducting non-profit in 2021 was negative, its operating income was less than 100 million yuan, and its net assets for the period were negative… The trading of the shares of the three companies was suspended since the opening of the market on March 31.
According to the reporter of securities times · e company, Chunghsin Technology Group Co.Ltd(603996) , Xinjiang La Chapelle Fashion Co.Ltd(603157) are the first stocks that touch the financial delisting index in Shanghai stock market in 2022. On the evening of March 30, the Shanghai Stock Exchange has sent the notice in advance and supervision letter to Chunghsin Technology Group Co.Ltd(603996) , Xinjiang La Chapelle Fashion Co.Ltd(603157) to terminate the listing of shares. Subsequently, the Shanghai Stock Exchange will convene the Listing Committee for deliberation within 15 trading days after the company discloses the annual report, and make the corresponding decision to terminate the listing according to the review opinions of the listing committee. Within five trading days from the date of the suspension of Northeast Electric Development Company Limited(000585) a shares, the Shenzhen Stock Exchange will issue a prior notice to the company of its intention to terminate the listing of a shares.
Facing the delisting risk of more and more companies, some market observers pointed out that with the increasingly smooth export of the capital market, investors should adjust their investment philosophy in time, never hype stocks with high delisting risk with speculative psychology, and avoid becoming the “last catcher” in the game of “beating drums and passing flowers”. In the environment of normalization of delisting, investors should uphold the concept of value investment, abandon the wind of “small speculation” and stay away from companies with delisting risk.
company’s share price voted by investors with their feet
From the market performance, as of the closing on March 30, the share prices of the three companies had been voted by investors with their feet, and had fallen to near 1 yuan, a record low.
From the fundamental situation, the three companies have lost the ability of sustainable operation and become the clearing object of the new delisting regulations. For example, Chunghsin Technology Group Co.Ltd(603996) and Xinjiang La Chapelle Fashion Co.Ltd(603157) have not been listed for a long time. After listing, the performance of both companies has declined year after year and the stock price has been depressed. Specifically, Chunghsin Technology Group Co.Ltd(603996) was listed on the Shanghai Stock Exchange in December 2015, and its main business is the R & D, manufacturing and sales of smart electronic products such as smart TV, commercial display, notebook computer and tablet computer. Since 2019, due to the occupation of funds by related parties and illegal guarantee, the company has difficulty in financing and tight funds, the receivables of overseas customers can not be recovered, the risk has erupted in an all-round way, the operating revenue has shrunk sharply, and there have been continuous losses. Since the beginning of 2020, the company has been in the state of shutdown, stagnation of main business and loss of sustainable operation ability.
Xinjiang La Chapelle Fashion Co.Ltd(603157) was listed on the Hong Kong Stock Exchange in October 2014 and on the Shanghai Stock Exchange in September 2017, becoming the first a + H clothing company in China. But “listing is the peak”, after which the company entered the trough of development. After 2018, the company’s operating revenue continued to decline, stores contracted, asset sales and asset liability ratio increased year by year, and its performance suffered continuous large losses. Until 2020, the company’s risks broke out in an all-round way, with sharp decline in performance and closure of stores, involving large amount of cumulative litigation. The company was affected by overdue debts, litigation, arbitration and execution cases, resulting in the freezing of several bank accounts, including the basic account, the sealing and freezing of the company’s assets and the equity of subsidiaries, and the serious impact on its production and operation business. At present, the company is insolvent, and there is significant uncertainty in its ability to continue operation.
it is worth noting that previously, Dea General Aviation Holding Co.Ltd(002260) , Great Wall International Acg Co.Ltd(000835) and Great Wall International Acg Co.Ltd(000835) of Shenzhen Stock Exchange have touched on financial delisting, and Shenzhen Stock Exchange has also issued a prior notice. In addition to the financial delicity category, which has become a set set of financial delidelidelidelicities: the ‘ Hongda Xingye Co.Ltd(002002) 260 , Cred Holding Co.Ltd(600890) , Huaxun Fangzhou Co.Ltd(000687) , Boomsense Technology Co.Ltd(300312) , Tempus Global Business Service Group Holding Ltd(300178) , Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) , Northeast Electric Development Company Limited(000585) , Egls Co.Ltd(002619) , and other listed companies’ performance forecasts for 2021 are prompted, There is a possibility that the listing may be terminated due to financial delisting indicators
many companies have not yet hired audit institutions
The reporter of securities times · e company also learned that in order to urge listed companies and annual report audit institutions to strictly implement the new delisting regulations, the Shanghai Stock Exchange interviewed 74 companies and audit institutions in the process of annual report audit supervision in the early stage, and sent 78 audit risk reminder letters to the audit institutions. Among them, for listed companies that may touch financial delisting indicators, the annual audit accountants are mainly reminded to pay attention to whether the company touches the deduction of operating income, The annual audit accountant is required to focus on the income generated by the company’s trade, factoring and other businesses, and verify the deduction of revenue. In addition, the Shanghai Stock Exchange issued the accounting supervision dynamics of the Shanghai Stock Exchange at the end of February, which further reminded the audit institutions of the annual report audit risks related to financial delisting.
At the same time, the exchange has issued performance notice inquiry letters to several ST companies, especially focusing on whether there is any behavior of evading delisting, such as Guizhou Changzheng Tiancheng Holding Co.Ltd(600112) , Lawton Development Co.Ltd(600209) , Hubei Wuchangyu Co.Ltd(600275) , Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , etc.
In the face of regulatory inquiries, many companies choose to postpone the reply, and a few companies that have replied also have the situation that accountants are unable to express clear opinions.
“Generally speaking, although some companies claimed that they would not touch the delisting situation in the performance forecast, there are still high delisting risks, and investors should not take such companies lightly.” Some market observers pointed out to the reporter of securities times · e company.
In addition, with only one month left before the legal deadline for the disclosure of the annual report, many companies have not yet hired an audit institution, and the risk of “dystocia” in the annual report has also attracted external attention. For example, among the companies in Shanghai stock market, Xin Jiang Ready Health Industry Co.Ltd(600090) , Shangying Global Co.Ltd(600146) , Hubei Wuchangyu Co.Ltd(600275) have not hired an audit institution. According to the relevant provisions of the stock listing rules of the Shanghai Stock Exchange, if the company fails to disclose the annual report of the latest year within the legal time limit after being warned of delisting risk due to financial indicators, it will touch the situation of financial delisting.
some insiders pointed out that the new delisting regulations have simplified the delisting process of financial delisting. In the first year, if financial indicators are touched, delisting risk warning will be implemented, and in the second year, various financial indicators will be cross applied. If any indicator fails to meet the standard, it will be delisted directly. In this context, investors must not take chestnut from the fire and have a fluke mentality
