The disclosure deadline of the annual report in 2021 is getting closer and closer, and ST company has ushered in a life and death moment.
In order to win a glimmer of vitality, some companies tried to “protect the shell” by dressing up their performance before the disclosure of the annual report, and the regulators rushed out to point to the problem of “seven inches”.
At noon on April 28, Dalian Morningstar Network Technology Co.Ltd(002447) announced that the company received a letter of concern from the Shenzhen Stock Exchange, and the accountant hired by the company believed that the paper business income should be regarded as “business income unrelated to the main business” and as a deduction of the operating income in 2021. After deduction, the company’s shares may touch the situation of financial termination of listing. The Shenzhen stock exchange requires the company to fully remind the risk of possible termination of listing of shares and remind investors of rational trading.
The financial indicators set in the new delisting regulations streamline the delisting process. Analysts pointed out that as the deadline for the disclosure of the annual report in 2021 approaches, more companies may touch the indicators of termination of listing and will be eliminated. Investors must not take advantage of the fire and take chances.
paper business is considered “irrelevant to the main business”
Dalian Morningstar Network Technology Co.Ltd(002447) it is expected that the 2021 annual report will be disclosed on April 30, but before the disclosure of the annual report, the Shenzhen Stock Exchange issued a letter of concern to the company in advance.
Dalian Morningstar Network Technology Co.Ltd(002447) once disclosed the performance forecast of 2021 on January 29 this year. The company expects to realize the net profit attributable to the shareholders of the listed company from -113 million yuan to -75 million yuan in 2021 and the operating revenue from 105 million yuan to 140 million yuan.
It is worth mentioning that Dalian Morningstar Network Technology Co.Ltd(002447) once mentioned in the letter of concern to the exchange that Luoxiu technology, a wholly-owned subsidiary of the company, achieved sales revenue of 51.53 million yuan in 2020 and about 101.39 million yuan in 2021, accounting for the vast majority of the company’s revenue. At the same time, although the company’s net profit is in a state of loss, there is still hope to protect the shell with a revenue of more than 100 million.
In this regard, the regulatory communication between Shenzhen Stock Exchange and the annual audit accountant Zhitong accounting firm hired by the company learned that based on the audit work carried out by Zhitong on the audit of the company’s 2021 financial statements, Zhitong accounting firm believes that the company’s paper business has the following situations:
1. Although the company formulates product standards and technical indicators, it does not master relevant technologies and has no processing capacity. The paper business processing activities are relatively simple and have a weak effect on the promotion of the value of paper products. The company’s paper processing activities are completely outsourced and cannot be completed independently. Although the company can choose processing manufacturers independently, this channel is not stable and there are no barriers. The company’s upstream suppliers and downstream customers can “cross” the company’s independent entrusted processing, and the company’s paper trademark has no influence on downstream customers.
2. The company is newly involved in the paper field, does not have relevant industry experience, and has significant dependence on suppliers, processing manufacturers and customers, so it is difficult to be sustainable. The company itself has no experience in the paper product industry, and the investment in product promotion, marketing system construction and talent reserve during the reporting period is small.
According to the accountant’s opinion, according to the relevant provisions on matters related to the deduction of operating income in Article 4.2 of the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 – business handling, the company’s paper business has not yet formed a stable business model, and the company’s paper business income in 2021 should be regarded as “business income unrelated to the main business” and as the deduction of operating income in 2021.
Based on this, the Shenzhen Stock Exchange said that the company should deduct the operating income generated by the company’s relevant businesses in accordance with the relevant provisions of Article 4.2 of the stock listing rules (revised in 2022) and the self regulatory guide for listed companies of Shenzhen Stock Exchange No. 1 – business handling.
Dalian Morningstar Network Technology Co.Ltd(002447) self rescue “shell preservation” failed
After the paper business is deducted from the company’s revenue, the company’s annual revenue in 2021 is almost zero according to the minimum budget, and the subsequent delisting risk is also significantly increased.
After receiving the attention letter from Shenzhen Stock Exchange, Dalian Morningstar Network Technology Co.Ltd(002447) ‘s share price directly fell by the limit from this afternoon, and as of press time, there were more than 1.8 million hand selling orders on the disk. By the end of the third quarter of 2021, the number of shareholders of the company was 44900.
Dalian Morningstar Network Technology Co.Ltd(002447) mainly engages in Internet games, E-sports and other businesses through its wholly-owned subsidiary Haoxin Internet, but the e-sports business and blockchain business have not formed a scale, and the company has suffered performance losses for consecutive years. In 2018, Dalian Morningstar Network Technology Co.Ltd(002447) net profit attributable to shareholders of the parent company lost 614 million yuan and 950 million yuan in 2019.
In order to get out of the dilemma, Dalian Morningstar Network Technology Co.Ltd(002447) cross-border acquired huixinchen, the main LCOS chip. At the same time, the company also established a wholly-owned subsidiary, Shanghai Luoxiu Technology Co., Ltd., which is mainly engaged in the comprehensive business of smart printing.
However, after a series of actions, the company still lost 71 million yuan in 2020. The revenue contributed by chip related business and paper business were 17.67 million yuan and 51.53 million yuan respectively, accounting for 16.79% and 48.96% respectively.
Obviously, the newly established Luoxiu technology has become the main source of the company’s revenue, accounting for nearly 50% of the company’s revenue in 2020. By 2021, Luoxiu technology’s revenue will reach 101 million yuan. According to the company’s expected minimum revenue of 105 million yuan, Luoxiu technology is almost all the revenue source of Dalian Morningstar Network Technology Co.Ltd(002447) 2021.
According to the company, Luoxiu technology was established in May 2020 with a registered capital of 10 million yuan. It was specially established by building a comprehensive business platform for smart printing and fully entering the engineering graphic industry.
According to the company’s strategic planning, the mature smart printing business will include “e mall” with the construction of smart graphic printing e-commerce platform as the main body, and multi-dimensional products such as special paper series products for engineering graphics, a variety of graphic production software products, printing equipment, pre press and post press matching equipment and comprehensive solutions for graphic services.
This means that Dalian Morningstar Network Technology Co.Ltd(002447) has actually become a paper production company, which is inconsistent with the business scope given by the company (Internet information service, technology development in the field of computer technology, graphic design and production).
After deducting the paper business, the delisting risk of the company increased significantly. The Shenzhen Stock Exchange said that if the audited net profit of the company in 2021 (whichever is lower) is negative after deducting the operating income formed by relevant businesses, and the operating income after deducting is less than 100 million yuan, the trading of the company’s shares will be suspended from the trading day next to the disclosure of the annual report. The Shenzhen Stock Exchange will issue a prior notice of the intention to terminate the listing of shares to the company within the specified period and make a decision to terminate the listing within the specified period.
these two companies have been suspended
In addition to Dalian Morningstar Network Technology Co.Ltd(002447) , on April 28, two ST companies have been suspended due to financial delisting after disclosing their annual reports.
Baotou Tomorrow Technology Co.Ltd(600091) announced that because the audited net profit in 2020 was negative and the operating income was less than 100 million yuan, and the financial and accounting report in 2020 was issued with an audit report that could not express opinions, the company’s shares had been warned of delisting risk.
The audited net profit in 2021 is still negative and the operating income is less than RMB 100 million. At the same time, the financial and accounting report in 2021 is issued with an audit report that cannot express an opinion.
According to article 9.3.11 (1) and 9.3.12 of the Listing Rules of Shanghai Stock Exchange, the listing of the company’s shares may be terminated by Shanghai Stock Exchange, and the trading of the company’s shares will be suspended from Thursday, April 28, 2022. Shanghai Stock Exchange will decide whether to terminate the listing of the company’s shares within 15 trading days after the company discloses the 2021 annual report.
ST Huaxun also announced that due to the negative net profit attributable to shareholders of Listed Companies in 2020, the operating income is less than 100 million yuan, and the negative net assets at the end of 2020, the company’s 2020 financial and accounting report was issued with an audit report that could not express opinions. The company has continued to implement delisting risk warning since the disclosure of the 2020 annual report on April 30, 2021.
According to the 2021 annual report of the company and the 2021 annual audit report issued by Shenzhen xutai Certified Public Accountants (general partnership), the audited net profit of the company in 2021 was negative and the operating income was less than 100 million yuan, the audited net assets at the end of 2021 were negative, and the 2021 financial and accounting report of the company was issued with an audit report of “unable to express opinions”.
If the company’s shares touch the termination of listing in (I), (II) and (III) of 9.3.11 of the stock listing rules (revised in 2022) of Shenzhen Stock Exchange, the company’s shares may be terminated. The trading of the company’s shares will be suspended from April 28, 2022. Within five trading days from the date of suspension of the company’s shares, the Shenzhen Stock Exchange shall issue a prior notice to the company of its intention to terminate the listing of the company’s shares. After receiving the notice of termination of listing, the company may apply for a hearing, make statements and defend in accordance with the provisions. The Shenzhen Stock Exchange shall be deliberated by the Listing Committee on whether to terminate the listing of the company’s shares, and make a decision on whether to terminate the listing of the company’s shares according to the examination opinions of the listing committee.
