On January 18, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) closed below the limit, and the share price fell below 1 yuan, becoming the first stock delisting below 1 yuan in 2022.
According to the current regulations, if the daily closing price is lower than 1 yuan for 20 consecutive trading days, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) will be terminated from listing, or become the first company to be delisted due to “1 yuan” in 2022.
fell below the delisting “life and death line”
At the opening of trading on January 18, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) shares fell by the limit to close at 0.97 yuan / share, falling below the “life and death line” of delisting of 1 yuan. This has been the company’s limit for three consecutive trading days since January 14. For the stock price falling below 1 yuan, on January 18, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) issued a risk warning announcement about the possible termination of the listing of the stock. The announcement prompted the specific provisions of the Listing Rules of the exchange on RMB 1 delisting. The company said that it is trying to stabilize and improve the fundamentals of the company’s operation and provide favorable guarantee for subsequent operation.
In addition to “RMB 1 delisting”, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has other delisting risks. On January 14, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) issued the 13th risk warning announcement on the termination of the listing of stocks that may involve major illegal compulsory delisting.
On the same day, the company received the case filing notice sent by Xinjiang securities regulatory bureau. Tacheng Public Security Bureau has filed and investigated the case of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and Huang Wei, the actual controller of the company, suspected of illegal disclosure and non disclosure of important information.
Source: company announcement
With regard to Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and Huang Wei’s case filed by the public security organ, the Shanghai Stock Exchange issued a supervision letter to the company on January 14, believing that the matter had a significant impact on the company, requiring it to disclose immediately, explain the impact on the company, and fully remind the risk. Shanghai stock exchange requires the company and all directors and supervisors to attach great importance to the above matters, timely report relevant progress and treatment results to them, and fulfill the obligation of information disclosure as required.
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) said that the company and Huang Wei would actively cooperate with the investigation, carefully evaluate the impact on the company and its actual controllers, and fulfill the obligation of information disclosure in strict accordance with relevant laws, regulations and regulatory requirements.
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) also said that up to now, the company’s production and operation are normal, and the company has not received a formal punishment decision. The company will actively exercise its legal rights such as hearing or making statements and pleadings, safeguard the rights and interests of the company and the majority of investors, and fully cooperate with the relevant work of the CSRC, And timely perform the obligation of information disclosure in strict accordance with the requirements of relevant laws and regulations.
once fell by the limit for 8 consecutive words
Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) and Huang Wei, the actual controller of the company, were put on file for investigation, which can also be traced back to the false increase of income of the company during 2018 and 2019 and major omissions in information disclosure in 2020.
According to the announcement disclosed on Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) October 22, 2021, the CSRC found that the company falsely increased revenue of 13.3854 million yuan and the total falsely increased profit of 1.2911 million yuan in 2018, accounting for 100% of the disclosed operating revenue and 5.24% of the absolute value of the total profit in that year; In 2019, the company falsely increased its operating income by 5.7886 million yuan, non operating income by 75.9 million yuan and total falsely increased profit by 79.3121 million yuan, accounting for 55.76% and 253.99% of the disclosed operating income and total profit of the current year.
The CSRC said that after retroactive adjustment, the operating income may be less than 10 million yuan for three consecutive years in 2018, 2019 and 2020. According to relevant regulations, the company may be involved in major illegal compulsory delisting.
In addition, after investigation, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has major omissions in information disclosure during 2020.
Based on the above violations, the CSRC warned and fined * ST Xinyi and relevant personnel. At the same time, the CSRC has taken lifelong market access ban measures against Huang Wei, the actual controller of the company, Li Yongqi, the chief supervisor of the company and the person in charge of the subsidiary.
Affected by this, * ST Xinyi’s share price has fallen for eight consecutive one word limits since the first trading day after the announcement.
audit institutions are to blame
The auditors of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) will also be punished. The CSRC plans to impose an administrative penalty of “six penalties for each case” on Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) audit institution Shenzhen Tangtang accounting firm (hereinafter referred to as “Tangtang office”), and the suspected crime of relevant subjects will be transferred to the public security organ.
It is reported that Tangtang office, knowing that the audit business of Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) annual report has been “rejected” by other accounting firms, signed an agreement with Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , promised not to issue “unable to express opinions” or “negative opinions” in the audit report, and required that Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) should be compensated if punished by the regulatory authorities.
The CSRC pointed out that the audit independence of Tangtang office is seriously lacking, there are many defects in the audit procedures, there are false records and major omissions in the audit report, and there is a lack of due professional ethics and bottom line. The proposed administrative punishment of “six penalties for no one” will be transferred to the public security organ if the relevant subjects are suspected of committing a crime.
Without the audit institution, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) on January 17, because the 2021 annual audit accountant was not employed, the supervision letter of Shanghai Stock Exchange was received. The Shanghai stock exchange requires it to hire an audit institution as soon as possible and actively cooperate, disclose the annual report on schedule, and ensure that the information disclosure is true, accurate and complete.
