Securities code: Sichuan Western Resources Holding Co.Ltd(600139) stock abbreviation: St Xiyuan Announcement No.: Lin 2022066
Sichuan Western Resources Holding Co.Ltd(600139)
With regard to the announcement of delisting risk warning and temporary suspension of trading 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 integrity of its contents.
Important content tips:
Sichuan Western Resources Holding Co.Ltd(600139) (hereinafter referred to as “the company”) shares will be suspended for one day on May 5, 2022.
Starting date of delisting risk warning: May 6, 2022
Stock price warning: after delisting, the stock price is still limited by 6005%.
After the delisting risk warning is implemented, the company’s shares will continue to be traded on the risk warning board.
1、 The abbreviation of stock type, securities code and the starting date of implementing other risk warnings
(I) stock types and abbreviations
The abbreviation of A-Shares is changed from “St Xiyuan” to ” ST Xiyuan”
(II) the stock code is still ” Sichuan Western Resources Holding Co.Ltd(600139) “
(III) starting date of delisting risk warning: May 6, 2022
2、 Application of delisting risk warning
Because the net profit before and after deducting non recurring profit and loss in 2021 is negative, the operating income irrelevant to the main business and without commercial substance in 2021 is less than RMB 100 million, and the net assets at the end of 2021 are negative; At the same time, the company’s 2021 financial and accounting report was issued with an audit report that could not express an opinion.
According to the provisions of article 9.3.2 (I), (II) and (III) of the stock market rules of Shanghai Stock Exchange, the company’s shares will be subject to delisting risk warning.
3、 Tips on the implementation of risk warning
According to article 9.3.4 of the Listing Rules of Shanghai Stock Exchange, the trading of the company’s shares will be suspended for one day on May 5, 2022, and other risk warnings will be implemented from May 6. After the delisting risk warning is implemented, the daily rise and fall limit of the stock price will still be 5%.
After the delisting risk warning is implemented, the company’s shares will continue to be traded on the risk warning board.
4、 Opinions and main measures of the board of directors of the company on striving to revoke the delisting risk warning
The board of directors of the company attaches great importance to it. In order to eliminate the delisting risk and strive to revoke the delisting risk warning, the management is required to actively take effective measures in combination with the actual situation of the company, strive to properly solve the matters involved, actively develop business, strengthen operation and management, try its best to eliminate adverse effects and strive to revoke other risk warnings.
On February 28, 2022, the company completed the re-election of the board of directors, the board of supervisors and the management. The management team has fully carried out the promotion of relevant businesses, and successively communicated with a number of investors about asset injection, striving to resolve the delisting risk of the company.
1. Timely promote the work related to reorganization
In view of the problems and risks faced by the company, the company is actively studying the feasibility and relevant plans of reorganization, plans to promote the work related to reorganization in due time, actively introduce industrial and financial investors to promote the company’s reorganization and rescue, resolve the company’s debt crisis, improve the company’s operating conditions, promote the resumption of production and work of the company’s existing mines and restore the company’s all-round sustainable development through reorganization and capital investment.
The largest creditor’s rights held by the development investment group is the biggest risk factor for the company to successfully complete bankruptcy reorganization. At present, the company has set up a special legal working group to carefully sort out and study the creditor’s rights, and will safeguard the interests of listed companies to the greatest extent through legal channels; It is maintaining communication with the controlling shareholder Beijing Meitong and other asset management companies, demonstrating the feasibility of resolving the debt crisis by acquiring the creditor’s rights of the development investment group, and has held many consultations with creditors; It is proposed to solve the debt problem at one time through legal procedures, such as extension, debt retention and debt repayment with shares. The specific scheme will be determined through consultation with the development investment group in the reorganization procedure. At present, no agreement has been reached.
2. Restart stagnant business and revitalize stock assets
In order to reverse the current operating difficulties, the company will restart the stagnant business, continue to handle and improve the corresponding certificates of mining rights of subsidiaries, and ensure the sustainable and healthy development of the company.
The company has two mines, Sanshan mining gold mine and Kailong mining Copper Mine, which still have mining capacity and profit possibility, have certain scale and market competitive advantages, and can resume production with only a small amount of cash flow, so as to create stable operating income and profits for the company.
At present, the company has preliminarily estimated the capital demand for the resumption of production of Kailong mining, and has successively contacted the intended investors and preliminarily communicated with the controlling shareholder Beijing Meitong. It plans to raise some funds to revitalize Kailong mining, is organizing and promoting its resumption of work and mining, and is establishing a special working group to speed up the approval process of relevant departments, and has hired a third-party audit and evaluation institution to carry out the evaluation of the two mineral resources, Fully carry out pre mining preparations. At present, most of the extension of mining rights has been completed, and the site selection of tailings pond and the technical transformation design of concentrator have been started to make preliminary preparations for subsequent mining.
Due to the low grade of Sanshan gold mine, arsenic content, low recovery rate and large investment amount of fixed assets, no suitable investor has been found for joint mining at the current gold price. After the company’s operation and capital situation improve, Sanshan mining will choose an opportunity to revitalize Sanshan mining. At present, the continuation of mining rights is being handled normally.
3. Extend the downstream of the industry and cultivate new profit points
In order to reverse the current operating difficulties and break through the bottleneck of single business, the company plans to extend to downstream industries on the basis of the original mineral resources business, establish a joint venture with a team with experience and resource advantages in the field of mineral products supply chain, and actively expand the bulk trade supply chain business of mineral products and other commodities.
Due to the change of the controlling shareholder and equity structure of an investor, the company plans to adjust the investor. At present, the specific adjustment scheme has not been agreed. After confirmation, the company will actively promote the business related to mineral product supply chain as planned and cultivate new profit points for the company.
4. Choose the opportunity to purchase assets and add new profit sources
After preliminary communication, Beijing Meitong said that it would make full use of its industrial resource advantages, choose the opportunity to provide loans to the company, purchase high-quality third-party assets that meet the company’s main business and have sustained and stable income, help the company reshape its main business, add new profit sources, resolve the delisting crisis of the company, provide guarantee for the company’s income and profits, and fundamentally solve the uncertainty of sustainable operation.
In January 2022, in order to supplement the working capital and maintain the daily operation, the company signed the maximum loan contract with the new controlling shareholder Beijing Meitong, and planned to apply for an interest free maximum loan of RMB 30 million, which was provided to the company in separate tranches. The loan term was one year, and the company did not provide any mortgage or guarantee. As of the approval date of this report, the company has received a loan of 9.6843 million yuan.
5、 Risk warning that the company’s shares may be suspended or terminated from listing
1. According to article 9.3.11 and other relevant provisions of the Listing Rules of Shanghai Stock Exchange, if the company is subject to delisting risk warning due to the circumstances specified in article 9.3.2, the listing of the company’s shares may be terminated under any circumstances in article 9.3.11.
2. As of the closing on April 29, 2022, the closing price of the company’s shares was 1.49 yuan, close to the face value of 1 yuan. According to the relevant provisions of mandatory delisting for trading in the stock listing rules of Shanghai Stock Exchange, if the daily closing price of the company’s shares is lower than RMB 1 for 20 consecutive trading days, the listing of the company’s shares may be terminated.
6、 During the implementation of delisting risk warning, the contact information of the company for investor consultation is as follows:
(I) Tel.: (028) 85917855
(II) contact address: 16th floor, China Canada International, No. 256, Bisheng Road, Industrial Development Zone, Jinjiang District, Sichuan Province
(III) fax number: (028) 859102028160
(IV) E-mail: Sichuan Western Resources Holding Co.Ltd(600139) @scxbzy.com.cn.
The information released by the company is based on the designated media China Securities News, Shanghai Securities News, securities times, securities daily and the website of Shanghai Stock Exchange (www.sse. Com. CN) The announcement published shall prevail. Please pay attention to the investment risks.
It is hereby announced
Sichuan Western Resources Holding Co.Ltd(600139) board of directors
May 5, 2022
