In 2022, as the key year to implement the normalized delisting mechanism, 42 listed companies have sounded the delisting alarm so far, including delisting Lvting, delisting Xishui, de’ao delisting and other companies have entered the delisting consolidation period, waiting to be delisted. With the decline of speculative arbitrage in the st sector, the radical investment concept of “seeking wealth and risk” of some investors is being reversed by tragic cases and alerted by bleak delivery orders.
With Shandong Jintai Group Co.Ltd(600385) and other “immortal birds” moving towards the “terminal” of delisting, A-Shares are also saying goodbye to the era of “immortal birds”.
“From more than 8 yuan in November last year to more than 1 yuan, the delisting Lvting share price has fallen by 80% and continued to fall after entering the delisting consolidation period, which is another painful day for me.” An unfortunate “stepping on thunder” shareholder sighed to the reporter, “real gold and silver go in and watch the money turn into waste paper.” The K-line chart of delisting Lvting shows that on the first trading day after the resumption of Trading (May 17), the company’s share price fell by 70% at the opening, from 1.7 yuan to 0.52 yuan, and there was no significant rebound in the following trading days.
Lucky investors have suffered the heaviest blow this year. In 2022, as the key year to implement the normalized delisting mechanism, 42 listed companies have sounded the delisting alarm so far, among which many companies such as de’ao delisting, delisting Lvting and delisting Xishui have entered the delisting consolidation period and are waiting to be delisted. With the decline of speculative arbitrage in the st sector, not only ordinary retail investors, but also private placement, niusan and institutions with rich investment experience fail to invest. Some investors’ radical investment view of “seeking wealth and risk” is being reversed by tragic cases and alerted by bleak delivery orders.
“The market environment has changed. It is no longer possible for ‘small speculation’ to have excess returns! This is a very clear trend.” Senior investment bankers told reporters that the number of delisting companies will reach a new high this year, which has great warning and educational significance for the market.
The source believes that the implementation of the new delisting policy has broken the abnormal state of “only entering but not going out” in the early market, and the purpose is to keep the market in a reasonable state of spitting out the old and embracing the new and dynamic balance. Under the clear signal of strict supervision, it will be a “useless work” for listed companies to avoid delisting through various means, and the number of delisting companies is expected to rise further in the future. With the gradual construction of a new ecology of “in and out, survival of the fittest” in the capital market, investors should adjust their investment philosophy in time and abandon the trend of “speculation of small and poor”.
private placement halberd
“After frying ST shares for so many years, I didn’t expect such strict supervision this year. The loss is too heavy.” Li Yong (pseudonym) is the executive partner of a private placement company in Shanghai. Last October, he bought Ningbo Sunlight Electrical Appliance Co.Ltd(002473) . As Ningbo Sunlight Electrical Appliance Co.Ltd(002473) is struggling to reach the “terminal”, Li Yong and several friends around him lost nearly 20 million yuan.
“In the past, it was inevitable that there were miscalculations and losses, but such serious losses rarely occurred.” Li Yong sighed to the reporter that in October 2021, after seeing the news of the change of major shareholders of the company disclosed by Ningbo Sunlight Electrical Appliance Co.Ltd(002473) disclosure, he instantly ignited his confidence in the stock and decided to bet heavily.
In Li Yong’s view, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) although the burden of history is not light, the introduction of power transmission and distribution equipment business in April last year, “new business” and “new owner” is obviously a posture of vigorously protecting the shell. On the eve of the news of the change of ownership, the Ningbo Sunlight Electrical Appliance Co.Ltd(002473) share price rebounded strongly, which strengthened Li Yong’s determination to invest in Ningbo Sunlight Electrical Appliance Co.Ltd(002473) shares. But at the beginning of March this year, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) said to change the annual audit accounting firm. At that time, he suddenly felt that something was wrong. “But I always believe that Qin Hui is the capital boss. Earlier, Qin Hui spent more than 1 billion yuan to take over the offer. The company is also actively improving the fundamentals. There must be no problem in protecting the shell.” Li Yong said that the company’s revenue in 2021 is expected to exceed 100 million yuan. From October last year to March this year, the stock price has remained popular, and the new owner Ma Lu continued to enter the market… All kinds of “prosperity” scenes have made him firmly optimistic about Ningbo Sunlight Electrical Appliance Co.Ltd(002473) .
It was not until early April, when Ningbo Sunlight Electrical Appliance Co.Ltd(002473) received the regulatory inquiry issued by the local securities regulatory bureau, that Li Yong realized that something was wrong. However, at this time, the Ningbo Sunlight Electrical Appliance Co.Ltd(002473) share price fell by the limit one after another, and there was no chance to escape.
“Now we don’t expect to recover the investment loss. We just hope that the regulatory authorities can strictly investigate Ningbo Sunlight Electrical Appliance Co.Ltd(002473) . Is the company’s new business and change of ownership true? We should give our shareholders a final conclusion.” Li Yong said that for small and medium-sized investors, the way to understand the real situation of listed companies is quite limited, and the announcement of listed companies is the most important and key clue for investors to make decisions. I hope the regulatory authorities can more strictly urge listed companies to disclose information truthfully and objectively and strictly investigate violations.
Among the private equity groups with relatively rich investment experience, the private equity products of Hangzhou Chunyang assets are unfortunately “recruited” to withdraw from the market. Due to the weak main business and poor performance, Shandong Jintai Group Co.Ltd(600385) has been wearing hats for many years, but it can always successfully protect the shell every time it is on the verge of delisting. It was once called the “immortal bird” of the stock market. In the first quarter of 2018, the newly established Hangzhou Chunyang asset sneaked into Shandong Jintai Group Co.Ltd(600385) , and then jumped to the second largest shareholder of the company. As of the first quarter of 2022, it still held 154363 million shares of the company, accounting for more than 10% of the total share capital.
But this time, there is no good luck. In the context of the implementation of the new delisting regulations, Shandong Jintai Group Co.Ltd(600385) 2021 had a revenue of less than 100 million yuan, and was issued an audit report with “non-standard” opinions, which touched the conditions for termination of listing. It is conceivable that if Hangzhou Chunyang assets fail to escape in time within the limited trading days in the second quarter, it will suffer huge losses.
Shanghai pangzeng investment “stepped on” the Lvjing Holding Co.Ltd(000502) , which is on the verge of delisting. As early as 2017, Shanghai pangzeng investment invested heavily in Lvjing holdings at that time, and became the second largest shareholder of the listed company with a shareholding ratio of 4.94%. Now, as Lvjing Holding Co.Ltd(000502) may withdraw from the A-share stage, the market value of the company’s shares held by Shanghai pangzeng investment has also fallen sharply, and the shares held for many years have only been exchanged for “chicken feathers”.
niusan missed
When it comes to st stock speculation, we have to mention the st stock specialist Niu San and Chen Qingtao. Similar to private placement Li Yong, Chen Qingtao also jumped into the “fire pit” of Ningbo Sunlight Electrical Appliance Co.Ltd(002473) . By the end of the first quarter of this year, it held Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 1394000 shares.
Chen Qingtao had a sweet taste in investing in ST shares earlier. Because he was keen on “stamp collecting”, ST shares were concerned by the market and became the spokesman of St investment model. According to the investigation, as of the first quarter of this year, in addition to Ningbo Sunlight Electrical Appliance Co.Ltd(002473) , Chen Qingtao also had a number of stocks in his hands, such as deao withdrawal, Kelin Environmental Protection Equipment Inc(002499) , Tempus Global Business Service Group Holding Ltd(300178) , Shandong Jintai Group Co.Ltd(600385) , delisting Zhongxin and so on.
Among them, Germany Austria delisting, China Singapore delisting, Shandong Jintai Group Co.Ltd(600385) etc. are on the verge of delisting.
Due to the stimulating and hazy arbitrage attribute, the restructuring expectation of ST shares can always arouse the expectation of sudden wealth of some speculators, and gradually become an independent sector in the A-share market. Since 2016, chenqingtao has published articles on a official account called “St value”, which focuses on discussing the investment value and investment experience of ST shares, and has gained many fans. As early as 2019, he once said: “many people think that people who invest in St have gambler psychology. In fact, they don’t see the value of St.”
At that time, due to Chen Qingtao’s gambling on ST shares, some retail investors regarded him as the “guiding light” of St share investment. In the early years, a reporter from Shanghai Securities News saw that Chen Qingtao was pushed to the podium by many small and medium-sized investors to replace the company’s board of directors and help listed companies find the target of reorganization. The scene was funny and outrageous.
In the history of the development of A-share market, due to the few delisting stocks over the years, active mergers and acquisitions, long-term agitation of speculative capital, and the “rigidity and immortality” of shell companies, there are a large number of investors keen to bet on ST shares in the market. In 2016, at the shareholders’ meeting of a ST company, an investor who came from other places told reporters: “I basically only buy ST shares.”
Times have changed. Under the background of the reform of registration system and the tightening of delisting supervision, Chen Qingtao’s investment philosophy has also changed. In the middle of December 2021, he once sent a document saying that the capital of minority shareholders is limited and they all hope to buy cheap and high-quality stocks, but it may lead to the result that the cheap and low-quality stocks are not beautiful. Therefore, we should choose promising stocks for long-term investment. Now, with many of the invested stocks being “cleared”, perhaps Chen Qingtao’s understanding should be more profound.
In addition to Chen Qingtao, Shanghai niusan, Zhou Renzhen and Cai Liping fell on Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) . In the first quarter of this year, Cai Liping just settled in this stock, holding 4703000 shares. In the same period, Zhou Renzhen held 13852000 shares, which is the largest shareholder of Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) company. However, only a few months later, a “non-standard” opinion in the 2021 annual report made Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) , who had tried his best to increase income and protect the shell, stand on the edge of the delisting cliff again. If they fail to get out in time, the investment of Zhou Renyu and Cai Liping will face the risk of “drifting”.
From Cai Liping’s position in the past two years, this female niusan has a special preference for ST shares. There are seven companies with heavy positions, such as St mall and St Zhongfu. As of the first quarter of this year, in addition to Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) , Cai Liping also held Hy Energy Group Co.Ltd(600387) , Baotou Huazi Industry Co.Ltd(600191) , Shenwu Energy Saving Co.Ltd(000820) .
It is worth noting that Niu San, who used to be keen on gambling on shell companies, such as Wu Mingxiao and Zhang Shouqing, has significantly reduced their investment in ST companies and shell companies in recent years, which is also a signal of the decline of the investment model of ST shares. “Investment has path dependence. It is really not easy for private placement or individuals to completely change their investment philosophy and investment style.” “But from the market situation and regulatory changes in recent years, the value of shell companies is indeed declining all the way, and we have rarely participated,” a private placement person in Zhejiang told reporters
mechanism “stepping on thunder”
In the camp of delisting stocks in this round, institutional investors also made “miscalculation” in investment, such as Founder Securities Co.Ltd(601901) , which was forced to take over the equity of Great Wall animation (i.e. “Changdong retirement”). In 2021, due to the breach of stock pledge of Great Wall group (later renamed Zhejiang Qingfeng), the former major shareholder of Great Wall animation, its 22.79 million shares (accounting for 6.97% of the total share capital) were auctioned off for many times. At the end of March this year, the court ruled that the price of the above 2279 million shares was 526517 million yuan to Founder Securities Co.Ltd(601901) , and the transfer registration procedures were completed on April 12.
At this time, Great Wall International Acg Co.Ltd(000835) has decided to withdraw from the market, the share price has plummeted, and Founder Securities Co.Ltd(601901) decided to stop the loss by selling shares. On May 10, Founder Securities Co.Ltd(601901) reduced 1.4 million shares through block trading, with a price of only 0.3 yuan / share and a cash out of 420000 yuan. On the evening of May 12, the listed company announced again that Founder Securities Co.Ltd(601901) plans to reduce its holdings of no more than 18.2 million shares by means of centralized bidding or block trading, accounting for 5.57% of the total share capital of the company.
In the past, the stock abbreviation of Great Wall animation has changed to “long moving retreat”. According to the company’s announcement on the evening of May 12, the “performance” of Great Wall animation on the A-share stage has only the last few trading days, after which it will be terminated from listing. Since the resumption of trading on April 27 and entering the delisting consolidation period, the stock price has been hovering around 0.3 yuan, and the trading volume in recent days is about several million yuan. Based on the latest share price, these stocks priced at 526517 million yuan are now worth only more than 7 million yuan.
Great Wall Asset Management also “stepping on thunder” Great Wall animation. As of the first quarter of this year, it held 13 million shares, accounting for 4.29% of the total share capital. With the company’s share price falling all the way, Great Wall Asset Management also lost a lot.
Not only Chinese investment institutions, QFII, which has always given people the impression of stable investment, has also stepped on thunder one after another. Julong Co.Ltd(300202) , with the title of “the first share in the paper money sorting industry”, has been in trouble in recent years and the competitiveness of its main business has continued to decline. Recently, Julong Co.Ltd(300202) faces delisting risk because the company’s 2021 annual financial report is issued with an audit report that cannot express an opinion by the audit institution.
According to the investigation, among the top ten tradable shares of Julong Co.Ltd(300202) up to the end of the first quarter of 2022, two overseas investment institutions – UBS AG and France Industrial Bank Co.Ltd(601166) are impressively listed, holding 2394500 shares and 2044600 shares respectively.
French Industrial Bank Co.Ltd(601166) also holds Xiamen Overseas Chinese Electronic Co.Ltd(600870) , which is about to be delisted. Xiamen Overseas Chinese Electronic Co.Ltd(600870) is known as the “electronic king”, but for various reasons, the company has been on the verge of delisting for many years. In the fourth quarter of 2021, France Industrial Bank Co.Ltd(601166) newly purchased 5.4987 million shares, accounting for 1.05% of the total share capital. After a slight reduction in the first quarter of this year, it still held 5.3838 million shares at the end of the period.
It’s the end of going public in 1995, but now it’s the end of going public. According to the previous notice issued by Shanghai Stock Exchange, it is planned to terminate the listing of Xiamen Overseas Chinese Electronic Co.Ltd(600870) shares because the audited net profit of Xiamen Overseas Chinese Electronic Co.Ltd(600870) 2021 is negative and the operating income after deducting irrelevant to the main business is less than 100 million yuan. At present, the market value has fallen to 1.857 billion yuan for five consecutive trading days before the suspension. If the stock price continues to fall sharply after entering the delisting consolidation period, the investment of French Industrial Bank Co.Ltd(601166) will also shrink significantly.
“The risk characteristics of companies with delisting risk are very clear, which can be found from financial data and all kinds of public information. If individual or institutional investors still take the initiative to invest at this time, they must still take chances and think that the company can finally protect the shell.” Senior people said that it has been very difficult for the investment bank to withdraw from the fire for two years, but the result is very good
