Due to the financial delisting index, 6 companies announced delisting at the same time!
On the evening of May 17, Shanghai U9 Game Co.Ltd(600652) , Baotou Tomorrow Technology Co.Ltd(600091) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Cred Holding Co.Ltd(600890) , Hubei Wuchangyu Co.Ltd(600275) , Lawton Development Co.Ltd(600209) successively announced that the Shanghai Stock Exchange decided to terminate the listing of the company’s shares and will enter the delisting and consolidation period from May 25, and the final trading date is expected to be June 15. By the end of the first quarter of this year, the number of investors in the above six companies had exceeded 180000.
Since this year, many companies have decided to withdraw from the A-share market, Egls Co.Ltd(002619) , delisting Xinyi have been delisted and delisted; Delisting lashia and delisting Zhongxin have also completed the delisting consolidation period, waiting to be delisted; Long term dynamic withdrawal, Dongdian withdrawal, Germany Austria withdrawal, delisting Lvting, delisting Xishui, etc. have entered the delisting consolidation period.
In addition, many companies have received the prior notice or supervision letter before the exchange decides to delist, including Boomsense Technology Co.Ltd(300312) , Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) , Dynavolt Renewable Energy Technology (Henan) Co.Ltd(002684) , Dalian Morningstar Network Technology Co.Ltd(002447) , Shenzhen Danbond Technology Co.Ltd(002618) , etc.
Analysts pointed out that behind the announcement of delisting by many companies is the implementation of the “strictest delisting new regulations in history” for more than a year, and the expectation of normalized delisting of A-Shares has increased. Under the expectation of fully implementing the stock issuance registration system, the clearing of venture companies will be further accelerated, so as to effectively enhance the resource allocation capacity of the market and promote the stable operation of China’s securities market.
6 companies that touch financial delisting indicators are forced to delist
Following the delisting of Lvting and Xishui, another group of A-share companies announced delisting.
On the evening of May 17, Shanghai U9 Game Co.Ltd(600652) , Baotou Tomorrow Technology Co.Ltd(600091) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Cred Holding Co.Ltd(600890) , Hubei Wuchangyu Co.Ltd(600275) , Lawton Development Co.Ltd(600209) successively announced that after receiving the decision of the exchange to terminate the listing, the company’s shares will enter the delisting and consolidation period, starting on May 25 and the final trading date is expected to be June 15.
A reporter from the securities times combcombcombcombfound by a reporter from the Securities Times found that a reporter from the Securities Times found that six companies were forced out of the city by six companies that had touched financial class delidelicity indicators, 60065652 \ \the.
Shanghai U9 Game Co.Ltd(600652) because the audited net profit in 2020 is negative and the operating income is less than RMB 100 million, the company’s shares have been warned of delisting risk since April 30, 2021. On April 30, 2022, the company disclosed the annual report of 2021. The audited operating income in 2021 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, which touched the situation of delisting.
Baotou Tomorrow Technology Co.Ltd(600091) because the audited net profit in 2020 is negative, the operating income is less than 100 million yuan, and the financial and accounting report is issued with an audit report that cannot express opinions, the company’s shares have been warned of delisting risk since April 30, 2021. On April 28, 2022, the company disclosed the annual report of 2021. The audited operating income in 2021 was 177159 million yuan, the operating income after deducting the business income irrelevant to the main business and the income without commercial substance was 41700 yuan, and the audited net profit was -519415 million yuan. YONGTUO Certified Public Accountants (special general partnership) issued an audit report with no opinion on the company’s financial and accounting report in 2021. The above circumstances involve the termination of listing.
Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) 2021 disclosed the corrected 2020 annual report in November. After retroactive restatement, the company’s net assets at the end of 2020 were -482 million yuan, and the company’s shares were subject to delisting risk warning. On April 30, 2022, the company disclosed the annual report of 2021. The audited ending net assets of 2021 were -7.355 billion yuan. The special audit report issued by Zhongxi accounting firm for the year 2021 cannot be expressed. The above circumstances involve the termination of listing.
Cred Holding Co.Ltd(600890) because the audited net profit in 2020 is negative and the operating income is less than RMB 100 million, the company’s shares have been warned of delisting risk since April 6, 2021. On April 29, 2022, the company disclosed the annual report of 2021. The audited operating income in 2021 was 2.6929 million yuan, the operating income after deducting the income irrelevant to the main business and the income without commercial substance was 308300 yuan, and the audited net profit after deducting non recurring profits and losses was -30.457 million yuan. The above circumstances involve the termination of listing.
Hubei Wuchangyu Co.Ltd(600275) because the audited net profit in 2020 is negative and the operating income is less than RMB 100 million, the company’s shares have been warned of delisting risk since May 6, 2021. The company disclosed the annual report of 2021 on April 29, 2022. The audited operating income in 2021 was 1101655 million yuan, the operating income after deducting the business income irrelevant to the main business and the income without commercial substance was 145256 million yuan, and the audited net profit after deducting non recurring losses was -356886 million yuan. The above circumstances involve the termination of listing.
Lawton Development Co.Ltd(600209) since the net profit attributable to the shareholders of the listed company in 2020 is negative and the operating income is less than RMB 100 million, the company’s shares have been warned of delisting risk since March 22, 2021. On April 29, 2022, the company disclosed the annual report of 2021. The audited operating income in 2021 was 727887 million yuan, the operating income after deducting the income irrelevant to the main business and the income without commercial substance was 647873 million yuan, and the audited net profit after deducting non recurring profits and losses was -540382 million yuan. Tianjian Certified Public Accountants (special general partnership) issued a qualified audit report on the company’s financial and accounting report in 2021. The above circumstances involve the termination of listing.
irrelevant business deducted
listed companies have increased the difficulty of “protecting the shell”
Among the above six companies that announced delisting, the reporter observed that some companies actually had a revenue of more than 100 million yuan, but were still forcibly delisted. Behind this is that the difficulty of “shell protection” of companies with poor performance has increased significantly after the exchange issued operating income deducting business handling guidelines.
For example, Hubei Wuchangyu Co.Ltd(600275) disclosed that the revenue in 2021 was 1101655 million yuan, and the audited net profit was -356886 million yuan. The company still hopes to maintain its listing status before the irrelevant business is deducted. However, after the deduction of irrelevant business and non commercial income, the revenue of Hubei Wuchangyu Co.Ltd(600275) is only 145256 million yuan, plus the net profit loss of -356886 million yuan, which touches the situation of financial delisting.
According to the practice in previous years, ST company will generally try to save itself before delisting. “Good students” donation, assault trade, assault “consolidation”, assault new business… Are all common tricks. However, since the end of 2021, after the exchange issued the guidelines for deducting business from operating income, the business income irrelevant to the main business and the income without commercial substance are required to be deducted from the revenue, which can be described as a “fatal blow” to shell companies.
The exchange said that in terms of financial delisting indicators, the new delisting regulations added a combined financial indicator with a negative net profit before and after deduction and an operating revenue of less than 100 million yuan. The purpose is to more accurately describe the sustainable operation ability of listed companies and strive to clear shell companies. When applying this indicator, the new delisting regulations specify that the deduction of operating income is “business income irrelevant to the main business and income without commercial substance”, and require the company to disclose the deduction of operating income and the amount of operating income after deduction in the annual report when the audited net profit before and after deducting non recurring profits and losses is negative, whichever is lower, The annual audit accountant shall issue special verification opinions on whether the deduction of operating income is accurate.
2021 is a key year for the implementation of the new delisting regulations. After sorting out the shell companies that do not have the ability of sustainable operation, the exchange refined the common means for such companies to make use of their business income to protect the shell, and formulated relevant deduction standards with a clear aim in order to accurately crack down on shell companies and strive to achieve “retreat as much as possible”.
According to the operating income deduction business handling guide issued by the exchange, the operating income deduction includes business income irrelevant to the main business and income without commercial substance.
Specifically include: 1. Business income unrelated to the main business refers to all kinds of income that is not directly related to the normal business operation of the listed company, or although it is related to the normal business operation, but because of its special nature, contingency and temporary nature, it affects the users of the statement to make a normal judgment on the sustainable operation ability of the company.
2. Income without commercial substance refers to the income generated by various transactions and events without commercial rationality, such as no significant change in future cash flow.
3. Other income that has nothing to do with the main business or does not have commercial substance.
Analysts pointed out that unrelated revenue deductions have a great impact on listed companies, especially those on the edge of delisting. At the same time, they also sound the alarm for those who make large revenue and avoid delisting by means of surprise trade, surprise “consolidation”, surprise new business and donation.
many companies have received advance notice before delisting
In addition to the currently announced delidelidelidelicompanies, there are many ST companies that have received the prior notice or regulatory letter before the exchange decides to withdraw from the market, including the prior notice or regulatory letter before the exchange decides to withdraw from the market, including Boomsense Technology Co.Ltd(300312) 312 \ , Bode Energy Equipment Co.Ltd(300023) , Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) , Henan Kedi Dairy Co.Ltd(002770) , Neoglory Prosperity Inc(002147) , Lvjing Holding Co.Ltd(000502) , Hainan Dadonghai Tourism Centre (Holdings) Co.Ltd(000613) , Xiamen Overseas Chinese Electronic Co.Ltd(600870) , etc.
2021 is the first year for the implementation of the new delisting regulations. According to incomplete statistics by the reporter of the securities times, there will be more than 40 A-share delisting companies this year. According to the data released by the Shenzhen Stock Exchange, 24 companies have touched the delisting red line in 2022, reaching a record high. Among them, 8 companies touched the index of “operating revenue less than 100 million yuan + negative net profit”, and the effect of the new delisting regulations is obvious.
According to the data of Shanghai Stock Exchange, up to now, 21 delisting companies are expected. Among them, it is expected that 17 companies that touch the financial delisting index will be delisted, and 9 of them touch the financial portfolio index of “deducting non net profit + operating income”. In addition, delisting Xinyi touched major illegal delisting, and three companies including Anhui Andeli Department Store Co.Ltd(603031) and Guangdong Mingzhu Group Co.Ltd(600382) withdrew through diversified channels such as restructuring and active delisting.
“In the past, the A-share delisting system made it impossible to effectively clear the companies that should have been delisted. These companies were gradually marginalized and produced a large number of small market value companies, occupying valuable market resources.” Haitong Securities Company Limited(600837) strategy team believes that at present, with the continuous improvement of policies, the normalized delisting mechanism of A-Shares is gradually taking shape.
Shenwan Hongyuan Group Co.Ltd(000166) said that the delisting system is a necessary supporting system for the successful implementation of the registration system. Only when the survival of the fittest can the registration system play an important role in optimizing the subject quality structure, achieve the balance of investment and financing in the capital market, form a healthy endogenous cycle in the capital market, and improve the quality of listed companies.
