“Stock reform nail households” Giti Tire Corporation(600182) ( Giti Tire Corporation(600182) ) announced on April 5 that the company’s shares may be subject to delisting risk warning. This also means that Giti Tire Corporation(600182) “wearing a hat” may be “Beatles”.
Although Giti Tire Corporation(600182) made an appointment to disclose the 2021 annual report on April 29 and the annual review is still in progress, the company revealed the risks more than 20 days in advance – the opinion type of the annual report audit is expected to be “unable to express opinions”, which is also the reason why Giti Tire Corporation(600182) or the delisting risk warning is implemented.
it is expected that the 2021 annual report will be issued with “unable to express opinions”
According to the announcement, in view of the preliminary opinions issued by YONGTUO certified public accountants in the first draft of the company’s 2021 annual financial statement audit report, Giti Tire Corporation(600182) it is expected that the 2021 annual financial report will be issued with an audit report that cannot express opinions.
According to the relevant rules of Shanghai Stock Exchange, the financial and accounting report of the latest fiscal year is issued with an audit report that cannot express opinions or negative opinions, and the company’s shares may be warned of delisting risk.
As for the “reasons and basis for expressing opinions that cannot be expressed” by the annual audit institution, the first draft of the special statement of audit opinions shows that the basis for forming the opinions is mainly the related party transactions of Giti Tire Corporation(600182) .
YONGTUO certified public accountants pointed out that the estimated total amount of daily related party transactions in Giti Tire Corporation(600182) 2020 and 2021 is 4.656 billion yuan and 4.466 billion yuan respectively, and the actual total amount of daily related party transactions in 2020 and 2021 is 3.771 billion yuan and 3.915 billion yuan respectively. Moreover, the daily connected transactions of the company have not been deliberated and approved by the general meeting of shareholders for two consecutive years, and the company still carried out connected transactions in violation of the resolutions of the general meeting of shareholders. Therefore, the event has a significant and extensive impact on the financial statements. At present, the company has failed to provide evidence of related party transactions approved by the general meeting of shareholders, so it is unable to obtain sufficient and appropriate audit evidence to judge the impact on the financial statements.
Due to the compliance of connected transactions, Giti Tire Corporation(600182) also received the decision on administrative supervision measures from Heilongjiang regulatory bureau of CSRC in January this year.
The reporter noted that since the 2003 annual report, YONGTUO certified public accountants has provided annual audit services for Giti Tire Corporation(600182) for 19 consecutive years.
during this period, Giti Tire Corporation(600182) was issued with “unqualified opinion with emphasized items” in the 2003 annual report and 2010 annual report, the 2020 annual report was issued with “qualified opinion”, and the 2021 annual report is expected to be issued with “unable to express opinion”. The types of audit opinions in other years are standard unqualified opinions
“nail household of share reform” still has no definite plan
In the capital market, the biggest label of Giti Tire Corporation(600182) is “nail household of share reform” – the only listed company in the A-share market that has not completed the share reform.
Previously, the two share trading reform plans of Giti Tire Corporation(600182) 2016 and 2017 failed to pass the deliberation of the general meeting of shareholders. In June 2020, the company announced again that it planned to suspend the trading of share trading reform. However, less than a month later, the company announced that it would terminate the planning because it could not form a relatively mature share reform plan and it was difficult to continue to promote the share reform. Since then, the company’s split share structure reform has not made substantive progress.
In the company’s monthly “one meeting” announcement on the progress of share reform, Giti Tire Corporation(600182) made the latest announcement on March 25. The company cannot disclose the share reform plan in recent one month. Investors are reminded to pay attention to investment risks.
The announcement shows that at present, there are 0 shareholders of non tradable shares who have agreed to the share reform in writing, and their total shareholding accounts for 0% of the total number of non tradable shares, which has not reached the limit of two-thirds stipulated in the measures for the administration of split share structure reform of listed companies. In addition, the reason for the failure of share reform is that there is no definite share reform plan.
