Securities code: China Security Co.Ltd(600654) securities abbreviation: St Zhong’an Announcement No.: 2022041 bond Code: 136821 bond abbreviation: 16 Zhong’an consumer
Announcement on the delisting risk warning and suspension of the company’s shares
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important:
1. Stock abbreviation after delisting risk warning: ST Zhongan; Stock Code: China Security Co.Ltd(600654) (unchanged); The daily rise and fall of stock prices is limited to 5%
2. China Security Co.Ltd(600654) (hereinafter referred to as “the company”) will suspend trading for one trading day on May 5, 2022, resume trading from the opening of the market on May 6, 2022, and implement special treatment of delisting risk warning
3. After the implementation of risk warning, the shares will be traded on the risk warning board
1、 Stock type, abbreviation, securities code and the starting date of delisting risk warning
1. Stock type: A-share stock, abbreviated from “St Zhong’an” to ” ST Zhong’an”
2. Stock Code: the stock code remains unchanged and remains ” China Security Co.Ltd(600654) “
3. Starting date of delisting risk warning: May 6, 2022
2、 Application of delisting risk warning
The audited net assets of the company at the end of the year 2021 are negative. According to article 9.3.2 of the Listing Rules of Shanghai Stock Exchange, “if a listed company has one of the following circumstances, the exchange will implement delisting risk warning for its shares: (II) the audited ending net assets of the latest fiscal year are negative, or the ending net assets of the latest fiscal year after retroactive restatement are negative.” The company’s shares are subject to special treatment of delisting risk warning ( st) after the disclosure of the 2021 annual report.
3、 Other risks of warning implementation
Dahua Certified Public Accountants (special general partnership) has audited the financial statements of the company in 2021 and plans to issue an unqualified audit report with explanatory notes. The paragraphs of the report on the significant uncertainty of continuous operation are as follows: we remind the users of the financial statements to pay attention to that, as described in note IV and 2 in section X of this report, the loss of China Security Science and Technology Co., Ltd. in 2021 was 1495357100 yuan, and on December 31, 2021, the accumulated undistributed profit of China Security Science and Technology Co., Ltd. was -3891848900 yuan, the net asset was -1445124700 yuan, and the asset liability ratio was 135.92%, The current liabilities are 2176316700 yuan higher than the total current assets, with a current ratio of 53.13%. The principal and interest of matured outstanding bonds and loans from financial institutions total 477655900 yuan. These events or circumstances, together with other important events shown in note 14 to the financial statements, indicate that there are major uncertainties that may lead to major doubts about the sustainable operation ability of China Anke company. Although China Security Technology Co., Ltd. plans to take the improvement measures described in note 4 and 2 in section X of this report, there are still major uncertainties about the effective implementation of the improvement measures. Users of financial statements should pay attention to note IV and 2 Disclosure of going concern. This matter does not affect the audit opinion issued. According to article 9.8.1 of the Listing Rules of Shanghai Stock Exchange, “if a listed company has one of the following circumstances, the exchange will implement other risk warnings for its shares: (ⅵ) the lower of the net profit before and after deducting non recurring profits and losses in the last three consecutive fiscal years is negative, and the audit report of the financial accounting report of the latest fiscal year shows that the company’s ability to continue operation is uncertain.” The company’s shares will continue to implement other risk warnings.
4、 Tips on the implementation of risk warning
According to the regulations of the Shanghai Stock Exchange, the trading of the company shall be suspended from February 30, 2024 to May 30, 2025 in accordance with the legal holiday of the stock exchange.
After the delisting risk warning was implemented for the company’s shares, the daily rise and fall of the stock price was limited to 5%. After the delisting risk warning is implemented, the company’s shares will be traded on the risk warning board.
5、 Opinions and main measures of the board of directors of the company on striving to revoke the delisting risk warning
1. Increase the collection of accounts receivable, continue debt optimization and obtain cash flow from operation and finance. The collection of accounts receivable has been greatly improved in 2021. In 2022, the company will continue to increase the collection of accounts receivable and set up a special collection team for long-term projects. On the one hand, normal project payment collection is coordinated with performance objectives to strengthen the awareness of payment collection. At the same time, timely tracking and timely control are achieved from the overall operation level of the group to ensure the smooth development of payment collection; On the other hand, the projects with difficult payment collection adopt various means to fully promote the payment collection process. In addition, a special group for collection of accounts receivable and a group for disposal of non-performing assets were established to ensure that “special personnel are assigned with specific responsibilities”.
Continue debt optimization and restore corporate credit. Based on the work results of previous years, the company continues to maintain active communication with creditors and reach an agreed plan, so as to alleviate debt and credit risks. At the same time, the company will actively maintain the existing financing cooperation and solve the financing problems through multiple channels. On the one hand, maintain the existing financing cooperation, tap the guaranteed potential and consolidate the existing financing scale; On the other hand, actively open up new financing channels to meet the incremental capital needs of business and alleviate the pressure of cash flow.
2. Consolidate the foundation and vigorously develop the main business
(1) Overseas business: seek new business opportunities while expanding the market share of stock business
Based on China and seizing the development opportunities of the the Belt and Road, the company has formed the development layout of countries and regions along the the Belt and Road, including Hong Kong, Thailand, Australia, New Zealand, Macao, etc.
In recent years, under the tight cash flow of the company, overseas business has maintained a relatively stable development, showing a relatively independent development pattern. On this basis, the company will stabilize the existing market and improve operation efficiency and find new sources of income through the implementation of business informatization. Continue to stabilize and expand the market share in security logistics, security technology and human security, and maintain the leading brand influence of relevant businesses in Hong Kong, Macao, Australia and Thailand.
The company will focus on developing the emerging market of electronic security, layout new industries such as aviation, and strive to create new business profit growth points. Accelerate the pace of electronic management of overseas business, improve operation service means through the application of big data, Internet of things, artificial intelligence and other technologies, further strengthen cost control and operation efficiency, introduce advanced security technology and management mode, and improve the profitability of enterprises with high-quality management.
The company will also continue to grasp the historic development opportunities brought about by the national “the Belt and Road” strategy. In the face of the growing demand of Chinese enterprises stationed abroad in the field of security, the company will actively participate in the “the Belt and Road” with its scarce qualifications and professional capabilities, help Chinese enterprises go global, provide a safe and intelligent working environment for the overseas development of Chinese enterprises, and ensure the life safety of employees stationed abroad and the safety of corporate property, Add wings to the national strategy.
(2) China business: divide sectors, integrate resources and give play to linkage advantages
China’s business mainly includes smart city system integration and intelligent manufacturing. After years of industry cultivation and extensive M & A, the company has formed a smart city system integration business segment with nationwide layout. By taking advantage of the platform and integrating the advantageous resources of various companies, the company is now focusing on the formation of three business segments: intelligent transportation, intelligent medical treatment and network security. The details are as follows:
Smart transportation: with the development trend of globalization and informatization in the world and the sustainable development of urbanization in China, the traditional traffic monitoring, operation and management technologies and means can no longer meet the needs of social and economic development. Intelligent transportation system is the inevitable choice for the development of transportation. The company has an experienced software and hardware R & D team in the intelligent transportation sector, complete qualifications and a number of core technologies and products with independent intellectual property rights, and has accumulated rich industry service experience over the years. The company will continue to consolidate and improve professional customized integrated design and service capabilities, provide customers with one-stop full chain services integrating design, R & D, procurement, construction and maintenance, and design, develop and effectively implement customized intelligent services suitable for customers according to customers’ needs, so as to drive the development and expansion of intelligent transportation business.
Smart medicine: the per capita level of medical resources in China is low and the division is uneven. The overall construction of information platform and his system will help to improve the service level and core competitiveness of hospitals, so as to create a more comfortable, convenient and efficient medical environment for medical workers and patients. In the face of the information construction of the medical industry after the epidemic, the company plans to integrate existing resources, update and improve the overall solution of intelligent medical treatment for hospital information construction, actively prepare for the construction of intelligent system of new hospitals and the upgrading, reconstruction and expansion project of existing hospitals, and make due contributions.
Information security: the company has rich experience in the information security industry. At present, it has two security operation and maintenance platforms: Anqing data analysis platform and ansv threat management platform. Through the construction of the above two user stickiness platforms, the company has gradually established a national distribution platform of security products. In the future, the company will continue to make use of its own professional and technical advantages to make the information security industry bigger, stronger, specialized and excellent, create fist products, set a benchmark for pilot projects, strengthen independent R & D and innovation, and vigorously expand the market for R & D of network security related products, so as to lay a foundation for the comprehensive promotion in the later stage.
Intelligent Manufacturing: first, focus on product R & D, transformation and iterative upgrading, and integrate the intelligent manufacturing industry. Second, the office is transformed into agent sales, which can increase the business power of sales channels and drive the improvement of regional sales by adding and optimizing existing agents. Third, strengthen the expansion of the international market, help the three intelligent manufacturing companies go to the overseas market and tap the internal sales potential of the company with the help of the progressiveness of products and the existing overseas security market advantages of Wei’an.
3. Continue to explore new business
In order to enhance the company’s sustainable operation ability and profitability and make full use of overseas airport security and transportation management service resources, the company established zhongkaiyun international logistics (Shanghai) Co., Ltd. with its own funds in June 2021, mainly engaged in international freight forwarding and warehousing business. As of December 31, 2021, the development trend of relevant businesses is good and in the state of cultivation.
4. People oriented, improve the combat effectiveness of existing teams and increase talent reserves
High quality talents are the basic premise for the development and sustainable innovation of intelligent enterprises. In 2022, the company will continue to vigorously carry out talent training, including internal training and talent introduction. The company creates and provides a platform for talents to realize their personal value and development goals on the premise of meeting the overall development objectives of the company. It will further improve the salary and welfare system and clarify the career development channel of employees. Strengthen the internal training of employees, optimize the talent growth environment, formulate policies to encourage employees to learn actively and develop synchronously with the company; Formulate scientific standards for the evaluation and use of talents, make the best use of talents and talents, and encourage innovative talents to rise to the top and innovate independently. Create a positive and harmonious working environment to provide the basis and guarantee for employees’ physical and mental health.
The company continues to carry out all-round incentive mechanism. Implement the employment scheme and accountability system with clear rewards and penalties for Chinese business executives; Launch a reward system for business executives associated with performance objectives; Formulate other reward systems for relevant functional departments and employees with outstanding contributions; Actively explore equity incentives and other related incentives. In addition, the company will continue to strengthen the construction of corporate culture, so as to make the communication and cooperation between the group and its subsidiaries and between Chinese and overseas companies more smooth and effective, and improve the soft power of enterprise development.
5. Improve internal governance structure, strengthen self-management and realize cost saving
The company will continue to promote the optimization and adjustment of internal governance and further improve the management level of listed companies. Deeply analyze the business and personnel management mode of each subsidiary, and continue to adopt targeted subsidiary management schemes to improve the management efficiency of subsidiaries on the basis of scientization and standardization. At the same time, the company will further strengthen the management and control of system integration business, emphasize the operation management at the group level and strictly control engineering projects. Through early research and judgment, process tracking and other measures, timely assess risks and allocate funds to ensure the sound development of relevant businesses. In addition, the company will standardize internal control through regular audit.
6、 Risk warning that the company’s shares may be suspended from listing
After the delisting risk warning of the company’s shares is implemented, if there are relevant circumstances in article 9.3.11 of the Listing Rules of Shanghai Stock Exchange, the listing of the company’s shares may be terminated. Please pay attention to the investment risk
7、 Main ways for the company to accept investor consultation during the implementation of delisting risk warning
1. Contact Department: Securities Management Center
2. Tel.: 02161625175
3. Fax No.: 02161625157
4. Email: zqtzb@ China Security Co.Ltd(600654) .com.
5. Contact address: unit ABC, 6 / F, building 11, Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) financial services Plaza, No. 1217 Dongfang Road, Pudong New Area, Shanghai
The information disclosure media designated by the company are China Securities News, Shanghai Securities News and the website of Shanghai Stock Exchange (www.sse. Com. CN), The information publicly disclosed by the company shall be subject to the company’s announcement published in the above designated information disclosure media. Please invest rationally and pay attention to investment risks.
It is hereby announced.
China Security Co.Ltd(600654) board of directors
April 29, 2002
