On the same day, six companies were forcibly delisted and two companies announced that they would be delisted, which is rare in the A-share market.
On May 17, Lawton Development Co.Ltd(600209) , Cred Holding Co.Ltd(600890) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Baotou Tomorrow Technology Co.Ltd(600091) , Shanghai U9 Game Co.Ltd(600652) , Hubei Wuchangyu Co.Ltd(600275) , the Shanghai Stock Exchange decided to terminate the listing of the company’s shares. The start date of the delisting consolidation period is May 25 and the final trading date is expected to be June 15. On the same day, delisting Zhongxin and delisting lashia announced that the delisting consolidation period had ended on May 17 and would be delisted by the Shanghai Stock Exchange on May 24.
On May 18, Easy Visible Supply Chain Management Co.Ltd(600093) announced that it would enter the delisting consolidation period on May 26, and the final trading date is expected to be June 16.
This may be the epitome of this year’s delisting tide. After the disclosure of the annual report in 2021, more than 40 companies in Shanghai and Shenzhen stock markets touched compulsory delisting, setting an all-time high for a shares. More than 90% of them involved financial delisting. In addition to the above eight companies, at present, five companies are in the delisting consolidation period, and two have been delisted.
This means that in addition to the companies that have been sentenced to death, a number of companies are in the process of waiting for a judgment on whether to terminate the listing. According to incomplete statistics, at present, 26 companies have received the advance notice of the exchange to terminate listing.
For some companies with violations of laws and regulations, delisting is not the end. Even if delisting, illegal accountability is not a retreat.
Some market participants said that with the increasingly smooth export of the capital market, investors should adjust their investment philosophy in time, do not carry speculative psychology, hype stocks with high delisting risk, and avoid becoming the “last catcher” in the game of “beating drums and passing flowers”. In the environment of normalization of delisting, investors should uphold the concept of value investment, abandon the wind of “small speculation” and stay away from companies with delisting risk.
6 companies are forced to delist simultaneously
The above six companies were forced to delist because they touched on financial delisting.
Among them, Cred Holding Co.Ltd(600890) , Hubei Wuchangyu Co.Ltd(600275) , Shanghai U9 Game Co.Ltd(600652) 3 companies touch delisting because their revenue is less than 100 million yuan for two consecutive years and their net profit after deduction is negative.
Specifically, Shanghai U9 Game Co.Ltd(600652) the game business has shrunk in recent two years, and the revenue mainly comes from the advertising business. According to the announcement, Shanghai U9 Game Co.Ltd(600652) because the audited net profit in 2020 is negative and the operating income is less than 100 million yuan, the delisting risk warning of the company’s shares has been implemented since April 30, 2021. On April 30, 2022, the company disclosed its 2021 annual report. The operating income of the year was 158273 million yuan, the operating income after deducting the business income irrelevant to the main business and the income without commercial substance was 105666 million yuan, and the audited net profit was -758199 million yuan.
Hubei Wuchangyu Co.Ltd(600275) similarly, due to the negative audited net profit in 2020 and the operating income of less than 100 million yuan, the company’s shares have been subject to delisting risk warning since May 6, 2021. At the end of 2021, the company carried out soybean outsourcing processing and sales business. Due to the low gross profit margin of relevant business, simple processing process and no stable business model, the amount of relevant income after deduction is less than 100 million yuan, and the net profit after deduction is -356886 million yuan.
Cred Holding Co.Ltd(600890) is because the real estate development business has basically stagnated, lost hematopoietic capacity, and the operating revenue and net profit have continued to decline. The revenue in recent two years is less than 100 million yuan, and the net profit is negative. The announcement shows that because the audited net profit in 2020 is negative and the operating income is less than 100 million yuan, the delisting risk warning of the company’s shares has been implemented since April 6, 2021. The audited operating income in 2021 was 2.6929 million yuan, the operating income after deducting the business income irrelevant to the main business and the income without commercial substance was 308300 yuan, and the audited net profit after deducting non business income was -30457000 yuan.
Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Lawton Development Co.Ltd(600209) , Baotou Tomorrow Technology Co.Ltd(600091) touched two financial delisting indicators Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) because the fundamentals did not improve in 2021, the net assets continued to be negative and the accountant issued a non-standard audit opinion Baotou Tomorrow Technology Co.Ltd(600091) , Lawton Development Co.Ltd(600209) not only the revenue is less than 100 million yuan and the net profit after deduction is negative, but also the accountant issued a non-standard audit opinion.
Specifically, since 2019, Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) risks have erupted in an all-round way, with large amount of illegal guarantees, broken capital chain, stagnation of Petrochina Company Limited(601857) natural gas trading business, sharp decline in revenue scale in recent years, large losses and insufficient sustainable operation ability. At the same time, the information disclosure of the company’s 2020 annual report was inaccurate, and the provision for bad debts was withdrawn in a low proportion, which was ordered to correct by the CSRC. After retroactive restatement, it touched the negative index of net assets (- 482 million yuan) and was warned of delisting risk. At the same time, the company’s fundamentals did not improve in 2021, its net assets continued to be negative (- 7.355 billion yuan), and it was unable to express an opinion issued by the accountant, so it touched the financial delisting.
Lawton Development Co.Ltd(600209) was originally engaged in hotel management and decoration. The control was changed in November 2020, and it is planned to transform to digital sports. The company’s original main business is generally operated, and the deduction of non net profit has been negative for many years. The digital sports with the intention of transformation has also failed to do large-scale research.
As the net profit attributable to the parent company in 2020 is negative and the operating income is less than 100 million yuan, Lawton Development Co.Ltd(600209) shares have been warned of delisting risk since March 22, 2021. In 2021, after deducting the business income irrelevant to the main business and the income without commercial substance, the operating income was 647873 million yuan, and the audited net profit after deduction was -540382 million yuan. And the accountant issued a qualified audit report.
Baotou Tomorrow Technology Co.Ltd(600091) originally, the main business was chemical industry, which was shut down by policy in 2011. Since then, no new transformation direction has been found, and a certain income scale has been maintained by relying on a small amount of trade business. In 2020 and 2021, the two indicators of “negative net profit after deduction + revenue of less than 100 million yuan” and the audit report issued by the accountant who is unable to express an opinion were reached.
It is worth noting that the above six companies were suspended on April 27, 28 and 29 this year, and their share prices fell continuously before the suspension. From April 1 this year to the date of suspension, the stock prices of Hubei Wuchangyu Co.Ltd(600275) , Lawton Development Co.Ltd(600209) , Cred Holding Co.Ltd(600890) all fell by more than 40%. The stock prices of Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Baotou Tomorrow Technology Co.Ltd(600091) fell by more than 30% and Shanghai U9 Game Co.Ltd(600652) fell by 8.11%.
there are still a number of companies involved in delisting waiting for the final judgment
After the disclosure of the annual report in 2021, more than 40 companies in Shanghai and Shenzhen stock markets touched compulsory delisting, setting an all-time high for a shares. This means that in addition to the companies that have been sentenced to death, a number of companies are in the process of waiting for a judgment on whether to terminate the listing.
At present, five companies, including Dongdian, Changdong, deao, Xishui and Lvting, are in the delisting consolidation period. Delisting Zhongxin and delisting lashia have ended the delisting consolidation period on May 17, 2022 and will be delisted by the Shanghai Stock Exchange on May 24 Egls Co.Ltd(002619) , delisting Xinyi was delisted on April 28 this year and withdrew from the A-share market.
In addition to the ‘ Boomsense Technology Co.Ltd(300312) \ \367 , Julong Co.Ltd(300202) , Huaxun Fangzhou Co.Ltd(000687) , Tempus Global Business Service Group Holding Ltd(300178) , Shandong Jintai Group Co.Ltd(600385) , Lanhai Medical Investment Co.Ltd(600896) , Shangying Global Co.Ltd(600146) Hna Innovation Co.Ltd(600555) and other companies have received the prior notice of the exchange to terminate listing.
The vast majority of the above companies involved in financial delisting. According to the analysis of the first financial reporter, after the introduction of the new delisting regulations at the end of 2020, if the financial reports of listed companies touch the relevant circumstances of the new delisting regulations, they will be implemented ST in 2021. If the financial delisting situation is still touched in 2021 and the suspension of listing is cancelled, the relevant companies will be directly delisted in 2022, This means that 2022 is a year in which the financial delisting indicators in the new delisting regulations focus on showing efficiency.
“On the whole, the implementation of the new delisting regulations has achieved good results and further purified the capital market environment.” Shenwan Hongyuan Group Co.Ltd(000166) analysis said that this year, the number of compulsory delisting companies hit a new high over the years, a normalized delisting mechanism is taking shape, the concept of “retreat as much as possible” is gradually fully recognized, and a new market ecology of “advance and exit, survival of the fittest” is gradually constructed. The new delisting regulations will have a deterrent effect on listed companies and help encourage listed companies to adjust their business strategies in time to achieve steady operation.
From the perspective of A-share delisting, from 2001 to 2018, there were only 6 delisting companies every year, with an average annual delisting rate of 0.36%. Since 2019, the delisting rate of A-Shares has accelerated significantly. From 2019 to 2021, the number of delisting was 10, 16 and 20 respectively, with a year-on-year growth rate of 100%, 60% and 25% respectively.
At the end of 2020, the new delisting regulations were officially introduced. In terms of delisting standards, the combined financial indicators are used to replace the single financial indicators, the “face value delisting” indicator is changed to the “1 yuan delisting” indicator, and the new market value indicator, the new amount of fraud plus the quantitative indicator of the proportion of fraud, etc; At the same time, it simplifies the delisting process, cancels the suspension and resumption of listing, shortens the delisting consolidation period to 15 trading days, and cancels the setting of delisting consolidation period for transaction delisting.
Haitong Securities Company Limited(600837) chief economist and chief strategist Xun Yugen believes that the delisting system is an important supporting system for the implementation of the registration system, which helps to ensure that the market ecology under the registration system can realize the self purification of the survival of the fittest, realize the dynamic balance of the number of A-share listed companies, alleviate the capital pressure brought by the issuance of listed companies to the market, and also help to optimize the resource allocation function of the capital market.
violation accountability is not a refund
It is worth noting that even if some companies withdraw from the market, their violation facts are not written off due to their withdrawal from the market, especially the vicious violations such as financial information fraud, capital occupation and illegal guarantee. The damage to the interests of the company already exists and the loss to investors has been caused. The self-regulation will not be left unchecked due to their withdrawal from the market.
Delisting Hangtong, which was delisted on March 18, 2021, disclosed the disciplinary decision of the Shanghai Stock Exchange on May 13 this year.
According to the disciplinary decision, the Shanghai Stock Exchange made a disciplinary decision for the illegal behavior of the opposite party of the major asset restructuring transaction and the performance commitment compensation obligor who did not fulfill the performance compensation obligation, after retroactive adjustment of the performance fraud of smart Haipai Technology Co., Ltd., the subject of the major asset restructuring of delisting Hangtong, and huge losses for three consecutive years, which was significantly different from the promised performance.
“The acquisition of operating assets by a listed company is a major matter of concern to the market and may have a great impact on the company’s stock price and investors’ decisions. The performance commitment to perform the compensation obligation agreed on the acquisition of assets by the company is the commitment that the counterparty should abide by. The performance commitment compensation obligor shall make compensation in time as agreed when the performance of the subject matter of the transaction fails to meet the standard.” The Shanghai Stock Exchange said.
The Shanghai Stock Exchange believes that the counterparties Zou Yonghang, Zhu HanKun, Zhang Yi, Nanchang Wanhe IKEA equity investment partnership (limited partnership) (hereinafter referred to as “Wanhe IKEA”) as the performance commitment party and compensation responsible person of this transaction, have failed to perform the performance compensation obligation and seriously damaged the interests of the company under the condition of large losses after retroactive adjustment of the performance of the underlying assets and significant differences in the nature of profit and loss from the promised performance, It deviates from the reasonable trust of investors, and the circumstances are serious.
According to the announcement, due to the inability to contact the counterparty, the Shanghai Stock Exchange made an announcement and delivered it on October 29, 2021. When the announcement period expires, and the relevant responsible person fails to submit written objection or hearing materials, it shall be deemed that the relevant responsible person has no objection.
Therefore, according to relevant regulations, the Shanghai Stock Exchange made a disciplinary decision: publicly denounce Zou Yonghang, Zhu HanKun, Zhang Yi, Wanhe IKEA, the counterparties of the delisting Hangtong major asset restructuring.
