On May 17, Cred Holding Co.Ltd(600890) ( Cred Holding Co.Ltd(600890) . Sh, hereinafter referred to as ” Cred Holding Co.Ltd(600890) “) was delisted by Shanghai Stock Exchange (hereinafter referred to as “Shanghai Stock Exchange”) because the audited net profit in 2020 and 2021 was negative and the operating income was less than 100 million yuan.
At present, Cred Holding Co.Ltd(600890) is suspended. On May 19, the reporter of Huaxia times called China Real Estate Co., Ltd. on the impact of the suspension of listing on the future development of the company, how Cred Holding Co.Ltd(600890) will adjust the real estate business in the current market environment, and whether it will consider re listing in the future. The answering staff stressed that the company has no special person to connect with the media for the time being, and most employees are inconvenient to contact at home and work due to the epidemic. If the reporter needs to know, it is suggested to pay attention to the company’s recent announcement.
on May 25, 5, it entered the delisting consolidation period
Cred Holding Co.Ltd(600890) was eliminated from the A-share market due to the financial delisting index of Shanghai Stock Exchange.
On May 17, Cred Holding Co.Ltd(600890) issued the announcement on terminating the listing of Cred Holding Co.Ltd(600890) shares (hereinafter referred to as the announcement), pointing out that 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 April 6, 2021.
The announcement further pointed out that in 2021, Cred Holding Co.Ltd(600890) the audited operating income 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 the non recurring profit and loss was -30457000 yuan.
The above circumstances belong to the termination of the listing of shares as stipulated in article 9.3.11 of the stock listing rules of Shanghai Stock Exchange. According to relevant provisions, the Shanghai Stock Exchange decided to terminate the listing of China real estate shares, and from the next trading day (i.e. May 25) after the expiration of five trading days after the announcement of this decision, China real estate shares will enter the delisting and consolidation period. The delisting consolidation period is 15 trading days. There is no limit on the rise and fall of the first trading day, and the rise and fall of other trading days is limited to 10%; The Shanghai Stock Exchange delisted Cred Holding Co.Ltd(600890) shares within 5 trading days after the expiration of the delisting period, and the listing of the company’s shares was terminated.
The reporter of Huaxia Times noted that Cred Holding Co.Ltd(600890) has long been in the delisting crisis, and has issued risk warning announcements that may be terminated for several times in the past two years.
For example, on April 28 this year, Cred Holding Co.Ltd(600890) announced that it had received the prior notice of Shanghai Stock Exchange on the proposed termination of Cred Holding Co.Ltd(600890) stock listing on the same day. The Shanghai Stock Exchange will make a decision to terminate the listing of the company’s shares in accordance with article 9.3.14 of the stock listing rules.
Earlier, on January 24, Cred Holding Co.Ltd(600890) announced that it had received the supervision letter on matters related to urging Cred Holding Co.Ltd(600890) to hire 2021 annual audit accountants from the second Department of management of listed companies of Shanghai Stock Exchange, which revealed that up to now, the company has not hired 2021 annual audit accountants, and the company’s shares are at risk of being terminated from listing due to failure to disclose periodic reports.
On January 28, Cred Holding Co.Ltd(600890) released the performance forecast for 2021, saying that the company expects the net profit of 2021 to be negative and the operating revenue to be less than RMB 100 million as in 2020. If the relevant financial indicators of the audited financial and accounting reports of the listed company for the last two consecutive fiscal years touch the financial compulsory delisting stipulated in the stock listing rules of Shanghai Stock Exchange (revised in January 2022), the listing of the company’s shares will be terminated after the disclosure of the 2021 annual report.
main business has long been “hollow”
In fact, Cred Holding Co.Ltd(600890) this delisting is not surprising.
According to the official website, China Real Estate Co., Ltd., formerly known as “Changchun Changling Industrial Co., Ltd”, was a joint-stock limited company established through restructuring in 1993. In 2003, the former major shareholder Changchun Changling Group Co., Ltd. transferred its 29.78% equity to China Real Estate Development Group Corporation (hereinafter referred to as “China real estate group”), which became the largest shareholder of the company; In September 2003, the company’s name was changed to ” Cred Holding Co.Ltd(600890) “.
In the annual report of 2003, Cred Holding Co.Ltd(600890) pointed out that in order to make the company bigger and stronger, after a series of capital operations such as asset replacement, acquisition and sale, all the assets belonging to motorcycles of the company have been placed into excellent real estate assets, and the main business has changed from the original motorcycle manufacturing industry to the real estate industry, which has brought new vitality and development to the company.
However, the good times are not long. Since 2008, Cred Holding Co.Ltd(600890) ‘s real estate development business has been in a stagnant state: in 2008, the company’s revenue was 32 million yuan, a sharp drop of 88.20% compared with 2007. Not only that, the company is also deeply involved in several lawsuits. The reporter of Huaxia times saw that the 2008 annual report mentioned that “the board of directors and management of the company have fully recognized the current situation of insufficient sustainable operation ability” and will “revitalize the stock assets, promote the progress of the project, actively look for new projects and improve the passive situation of the main real estate industry”.
Nevertheless, after selling 55% of the equity of Xuzhou Tianjia Real Estate Development Co., Ltd. in 2009, Cred Holding Co.Ltd(600890) has no new real estate development business, and the main revenue is only the stock commercial rent income and investment income. Before “wearing hats” on April 6, 2021, because Cred Holding Co.Ltd(600890) the audited net profit disclosed in the annual report was negative in 2007 and 2008, the company’s shares were subject to special treatment of delisting risk warning from April 21, 2009, and “Zhongfang shares” was changed to “St Zhongfang” from July 19, 2010. It was not until August 24, 2012 that the company’s stock abbreviation returned to “Zhongfang shares”.
In 2010, China real estate group was merged into China Communications Construction Group. Later, in order to solve the problem of horizontal competition, China real estate group transferred its Cred Holding Co.Ltd(600890) 1896% equity to Jiayi (Tianjin) Investment Management Co., Ltd. in May 2013. Since then, Cred Holding Co.Ltd(600890) ‘s performance has been depressed.
After the dismal operation in 2020 and 2021, on April 28 this year, Cred Holding Co.Ltd(600890) released the operation briefing, which showed that in the first quarter of 2022, the company had no new real estate land reserve, no new construction and completed projects, and no commercial housing sales; By the end of the first quarter of 2022, the total area of the company’s leasable property was 302482 square meters. In the first quarter, there was no rental income due to the withdrawal of the original tenant.
It is worth noting that Cred Holding Co.Ltd(600890) also sold shells to Liaoning Zhongwang Group Co., Ltd. (01333. HK, hereinafter referred to as “China Zhongwang”) twice, but both ended in failure.
According to public information, Zhongwang is the second largest R & D manufacturer of industrial aluminum extrusion products in the world and the largest in Asia. On March 18, 2016, Cred Holding Co.Ltd(600890) announced that the company was communicating with China Zhongwang on the purchase of assets, forming a major restructuring. However, in the following three years, there was almost no substantive progress in the major asset restructuring between the two sides. On August 27, 2019, Cred Holding Co.Ltd(600890) announced that the previous restructuring resolution has been nearly three years, the market environment and the operation of relevant subjects have changed, and the agreement between the two sides will not be renewed after it expires on September 21, 2019.
On March 21, 2020, Cred Holding Co.Ltd(600890) also announced that 100% equity of Zhongwang group was planned to be injected into the listed company at a price of 30.5 billion yuan. After the completion of the transaction, China Real Estate Co., Ltd. will be transformed from a real estate enterprise into an aluminum extrusion enterprise, and Liu Zhongtian, the actual controller of Zhongwang group, will become the new actual controller of the listed company. However, on August 11, 2021, Cred Holding Co.Ltd(600890) said that in view of the current market environment and other reasons, the company decided to terminate this major asset restructuring.
