With the disclosure of annual reports of A-share listed companies, many listed companies have handed over high-quality “transcripts” in 2021. At the same time, some financial reports have been issued with non-standard opinions and announced that the company’s shares may be delisted. The reporter is concerned that since the implementation of the new delisting regulations, the number of companies touching the delisting early warning line has increased significantly. Some insiders believe that the number of A-share delisting enterprises will continue to increase in the future, and investors should carefully choose the stocks with delisting risk warning.
more than 10 listed companies have issued non-standard opinions on their financial reports
On April 12, Beijing Zodi Investment Co.Ltd(000609) applied to cancel the warning of delisting risk of the company’s shares. It is reported that the company was dealt with by “delisting risk warning” because the lower net profit before and after deducting non recurring profits and losses in 2020 was negative and the annual operating income was less than 100 million yuan. However, not every company is so lucky in the centralized disclosure season of its annual report.
According to the reporter’s incomplete statistics, at present, the financial reports of more than 10 listed companies in Shanghai and Shenzhen have been issued with non-standard opinions, including unqualified opinions with emphasis, qualified opinions, etc. Taking Great Wall International Acg Co.Ltd(000835) as an example, the content of the non-standard opinion issued by its audit institution shows that the company’s personnel are seriously lost and its business is basically at a standstill; The total operating income of the company in 2021 was 2.3712 million yuan, and the net profit attributable to the parent company was -453595400 yuan, which has been in loss for four consecutive years; As of December 31, 2021, the total equity attributable to the shareholders of the parent company was -1033822 million yuan, and there were 9511284 million yuan of debt principal and interest overdue; Due to overdue debts and other matters, the company involved in many lawsuits, some bank accounts and the equity of some subsidiaries were frozen by the judiciary, and said that “it is impossible to obtain sufficient and appropriate audit evidence to judge whether the financial statements prepared by Great Wall animation on the basis of going concern assumption are appropriate”. Immediately, Great Wall International Acg Co.Ltd(000835) announced that if the company touches the relevant termination provisions of the Shenzhen Stock Exchange, the listing of the company’s shares may be terminated.
Chunghsin Technology Group Co.Ltd(603996) and other companies are similar to Great Wall International Acg Co.Ltd(000835) and their financial reports are provided with audit reports that cannot express opinions, while the Shanghai Stock Exchange has sent Chunghsin Technology Group Co.Ltd(603996) a prior notice and a supervision letter of the intention to terminate the listing of shares, and will make a corresponding decision to terminate the listing within 15 trading days.
since the implementation of the delisting new regulations, the number of companies touching the delisting early warning line has increased
The Shanghai Stock Exchange Stock Listing Rules and Shenzhen Stock Exchange Stock Listing Rules revised in January this year show that compulsory delisting is mainly divided into trading compulsory delisting, financial compulsory delisting, normative compulsory delisting and major illegal compulsory delisting. In fact, since the implementation of the new delisting regulations, the number of listed companies touching the delisting early warning line has increased significantly. At present, more than 200 listed companies have touched the delisting early warning line, of which nearly 70% have touched the normative delisting indicators.
For example, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , the first delisted stock of this year, which was forcibly delisted due to major violations, the decision on administrative punishment of the CSRC shows that the company falsely increased its operating income in 2018 and 2019. After deducting the falsely increased operating income, the actual operating income of the company for three consecutive fiscal years in 2018, 2019 and 2020 was less than RMB 10 million, and the financial and accounting report of 2020 was issued with qualified audit report. The company’s shares entered the delisting consolidation period on March 30, and the final trading date is expected to be April 21.
In addition to the above Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , recently Egls Co.Ltd(002619) also touched trading delisting because the closing price of Egls Co.Ltd(002619) has been lower than 1 yuan for 20 consecutive trading days; In addition, Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) said that there was a risk of major illegal compulsory delisting of the company’s shares Xin Jiang Ready Health Industry Co.Ltd(600090) april 12 announced that the closing price of the company’s shares on April 11 was 0.96 yuan / share, lower than 1 yuan. According to relevant regulations: if the daily closing price of the company’s shares for 20 consecutive trading days is lower than 1 yuan, the listing of the company’s shares will be terminated and the trading will be suspended at present.
carefully select stocks with delisting risk warning
Investors familiar with the A-share market know that the mandatory delisting of trading is mainly to touch the closing price of less than 1 yuan for 20 consecutive trading days, and the total closing market value of stocks for 20 consecutive trading days is less than 300 million yuan; The main indicators of financial compulsory delisting are that the net profit of the latest annual report is negative and the operating income is less than 100 million yuan. In addition, the mandatory delisting of normative type mainly involves major errors and false statements in the financial report, failure to disclose the semi annual report and annual report according to the specified time requirements, more than half of the directors cannot guarantee the authenticity, accuracy and integrity of the semi annual report and annual report, and fraudulent issuance and illegal disclosure of major information are the main indicators of mandatory delisting of major illegal types.
“Over the past 20 years, more than 100 A-share listed companies have withdrawn from the market. In the past three years, the number of mandatory delisting listed companies has increased significantly, and more than 30 mandatory delisting listed companies from 2019 to 2021.” Some industry insiders believe that the capital market will become more mature in the future, and the number of A-share delisting enterprises will continue to increase. Investors should carefully choose stocks with delisting risk warnings.
