On May 20, Boomsense Technology Co.Ltd(300312) and Xin Jiang Ready Health Industry Co.Ltd(600090) successively announced that due to the failure to disclose the annual report of 2021 within the specified time limit, the CSRC decided to file a case for investigation.
Both companies have received prior notice of the exchange’s decision to terminate the listing of their shares. At present, Boomsense Technology Co.Ltd(300312) and Xin Jiang Ready Health Industry Co.Ltd(600090) are suspended Boomsense Technology Co.Ltd(300312) the current share price is 142 yuan and the market value is 454 million yuan Xin Jiang Ready Health Industry Co.Ltd(600090) the current share price is 0.96 yuan and the market value is 1.382 billion yuan.
As of September 30, 2021, the number of Xin Jiang Ready Health Industry Co.Ltd(600090) shareholders is 50200 and the number of Boomsense Technology Co.Ltd(300312) shareholders is 21100.
CSRC filing investigation
On the evening of May 20, Boomsense Technology Co.Ltd(300312) announced that the company received the notice of filing a case from the CSRC on May 19. Due to the failure to disclose the 2021 annual report within the specified time limit, the CSRC decided to file a case against the company in accordance with relevant laws and regulations.
Source: company announcement
Boomsense Technology Co.Ltd(300312) said that according to the situation described in the notice of filing, the company preliminarily judged that the case filing and investigation event did not touch the situation described in Article 2, Article 4 or Article 5 of the measures for the implementation of major illegal compulsory delisting of Listed Companies in Shenzhen Stock Exchange.
That night, Xin Jiang Ready Health Industry Co.Ltd(600090) also disclosed that the CSRC decided to file a case against the company because the company’s 2021 annual report was not disclosed in time, which was suspected of illegal information disclosure.
Source: company announcement
Both companies said that they would actively cooperate with the investigation of the CSRC, continue to pay attention to the progress of the incident, and timely fulfill the obligation of information disclosure in strict accordance with relevant regulations.
Due to the “dystocia” of the annual report, the trading of Boomsense Technology Co.Ltd(300312) 5 has been suspended since May 5. Before the suspension, the share price continued to decline, which is only 142 yuan at present, and the market value is only 454 million yuan.
Xin Jiang Ready Health Industry Co.Ltd(600090) has been forcibly suspended since April 12. Before the suspension, Xin Jiang Ready Health Industry Co.Ltd(600090) rose for four consecutive trading days, but even so, the share price was still less than 1 yuan and the market value was only 1.382 billion yuan.
two companies’ annual report “dystocia”
Listed companies do not disclose their annual reports in time, which seriously affects investors’ comprehensive and timely access to relevant information of the company, and seriously damages investors’ right to know. Why did the two companies fail to disclose their annual reports?
In recent years, Boomsense Technology Co.Ltd(300312) has been hovering on the edge of delisting. In the first three quarters of 2021, the operating income of the company was only 100445 million yuan, but the net profit loss was as high as 757854 million yuan, and the net assets at the end of the period was – 276 million yuan. The pressure on the shell is hanging, and Boomsense Technology Co.Ltd(300312) made a big move on the last day of 2021: signed an asset gift agreement to transfer the assets of Chengdu nengdun Electronic Technology Co., Ltd. free of charge. As soon as the news came out, the share price immediately increased by 20cm, which also attracted the attention of the exchange.
Finally, the company failed to disclose the annual report and quarterly report as scheduled due to the failure to reach an agreement with the annual report auditor on the audit and evaluation of the assets of Chengdu nengdun Electronic Technology Co., Ltd. and other important matters.
Xin Jiang Ready Health Industry Co.Ltd(600090) there is another “story”. On April 5, Xin Jiang Ready Health Industry Co.Ltd(600090) suddenly issued an announcement and planned to change the accounting firm, but the change still needs to be approved by the general meeting of shareholders on April 22, which is only 8 days from the legal reporting date. According to the announcement, on April 5, the company also signed an audit engagement letter with Shenzhen Lianchuang Lixin certified public accountants, with a short time interval from the legal report date. Combined with the audit process and workload of the company’s annual report, the annual audit accountant could not complete the audit procedures before April 30.
stock exchange intends to terminate the listing of shares
Before the CSRC filed the case for investigation, the Shanghai Stock Exchange and Shenzhen Stock Exchange have issued advance notices on April 30 and may 5 respectively to make a decision on the termination of the listing of the two companies due to touching the conditions for the listing and termination of the listing of the shares on the exchange.
Since April, Boomsense Technology Co.Ltd(300312) and relevant parties have received three letters of concern, one letter of supervision, one letter of warning and one letter of decision on administrative supervision measures. On April 25, due to the non timely disclosure of illegal guarantee matters and the correction of major accounting errors, the Shenzhen Stock Exchange also gave disciplinary sanctions to five senior executives including the company and the chairman.
Xin Jiang Ready Health Industry Co.Ltd(600090) and relevant responsible persons have received three supervision letters, one disciplinary decision, administrative punishment decision and market entry prohibition decision from the exchange since April.
According to the letter of administrative punishment, from 6 Xinyangfeng Agricultural Technology Co.Ltd(000902) 017 to 2019, the net profits falsely increased by 701 million yuan, 608 million yuan and 299 million yuan respectively. After retroactive adjustment, the net profit of the company for three consecutive fiscal years from 2017 to 2019 was negative, and the net profit in 2020 was also negative, and the accounting firm issued an audit report that could not express an opinion.
