Six companies have just announced their delisting, and another group of companies have received the decision to delist from the exchange.
On the evening of May 18th, *ST Huaxun and *ST Yijian issued an announcement saying that the company received the stock exchange’s decision to terminate the listing of the stock, and the company’s stock will enter the delisting consolidation period from May 26th. The delisting consolidation period is Fifteen trading days, the last trading date is expected to be June 16. As of March 31, 2022, the two companies have close to 90,000 shareholders.
This year is the second year of the implementation of the new delisting regulations, and it is also the year when the reform effects are concentrated.After the 2021 annual report was disclosed, more than 40 companies in the Shanghai and Shenzhen stock markets were forced to delist, setting a record high for A shares. More than 90% of them involved financial delisting. In addition to delisted and delisted *ST Iger and delisted Xinyi, there are currently 5 companies whose stocks are in the delisting consolidation period, and 2 companies have completed the delisting consolidation period and are waiting for the exchange to be delisted.
In addition to the above-mentioned companies that have been sentenced to delisting, there are still a group of companies that are in the process of waiting for a judgment on whether to terminate listing. According to incomplete statistics by reporters from the Securities Times, currently 25 companies have received prior notices from the exchanges that they intend to terminate their listings.
Two more companies were forced to delist
On the evening of May 18, *ST ECCOM announced that the company had received the Shenzhen Stock Exchange's "Decision on Termination of Listing of ECCOM Ark Co., Ltd.", and the Shenzhen Stock Exchange had decided to terminate the company's stock listing.
*ST ECCOM’s 2020 annual financial and accounting report was issued an audit report that could not express an opinion because the audited net profit in 2020 was negative, the operating income was less than 100 million yuan, and the audited net assets at the end of the period were negative. Stock trading will be subject to a delisting risk warning from April 30, 2021.
On April 28 this year, the first annual report (that is, the 2021 annual report) after the delisting risk warning of *ST Huaxun stock trading was implemented showed that the company's audited net profit in 2021 was -719 million yuan and its operating income was 35 million yuan, and the audited net assets at the end of the period were -2.132 billion yuan. The 2021 annual financial and accounting report was issued with an audit report that could not express an opinion, which touched the termination of listing of stocks stipulated by the Shenzhen Stock Exchange.
The Shenzhen Stock Exchange decided to terminate the listing of *ST ECCOM shares. The company's stock has entered the delisting consolidation period since May 26, and the Exchange will delist the company's stock on the trading day following the expiry of the delisting consolidation period. As of the end of the first quarter of this year, the company has more than 45,000 shareholders.
Coincidentally, *ST Yijian was forced to delist together with *ST ECCOM. On the evening of May 18, *ST Yijian announced that the company had received the Shanghai Stock Exchange's "Decision on the Termination of Listing of the Stock of Yijian Supply Chain Management Co., Ltd.", and the Shanghai Stock Exchange decided to terminate the company's stock listing.
*ST is easy to see that due to the negative value of the audited net assets at the end of the 2020 year and the financial accounting report being issued with an audit report that cannot express an opinion, the company's stocks will continue to be subject to delisting risk warnings from July 7, 2021. On April 27, 2022, the company disclosed the 2021 annual report, and the audited net assets at the end of the 2021 year were -4.972 billion yuan. Dahua Certified Public Accountants (Special General Partnership) issued an audit report with no opinion on the company's 2021 financial and accounting report. The above circumstances involve the termination of listing of stocks.
The Shanghai Stock Exchange decided to terminate the listing of *ST Yijian stock. The starting date of the company's stock entering the delisting arrangement period is May 26. The delisting arrangement period is 15 trading days, and the last trading day is expected to be June 16.
"Blockchain's first stock" 6-year revenue fraud exceeded 50 billion
*ST Yijian not only involves financial delisting situations, but also involves major illegal delisting situations.
On the evening of April 19, *ST Yijian announced that the company received the "Advance Notice of Administrative Punishment" issued by the China Securities Regulatory Commission. The company’s suspected illegal facts are: there were false records and major omissions in the periodic reports from 2015 to 2020; the 2020 annual report was not disclosed on schedule.
The "Notification" shows that from 2015 to 2020, the company's total inflated income from various false businesses was 4.441 billion yuan, 11.92 billion yuan, 12.004 billion yuan, 10.47 billion yuan, 10.987 billion yuan, and 6.429 billion yuan. The proportions of the total operating income disclosed in each year were 84.26%, 73.68%, 75.20%, 72.18%, 71.59%, and 66.16%, respectively, and the total falsely increased income in 6 years was 56.251 billion yuan.
The falsely increased profits in each year were 43 million yuan, 684 million yuan, 1.147 billion yuan, 1.121 billion yuan, 1.24 billion yuan, and 3.975 billion yuan (considering the bad debt provision that Yijian shares made on its own in 2020), accounting for each year’s disclosure. The proportions of the total profits were 9.49%, 69.33%, 96.46%, 110.06%, 142.94%, and 33.07%, respectively, and the falsely increased profits were 8.212 billion yuan in six years; after deducting the falsely increased profits, three consecutive years of losses from 2018 to 2020.
The company stated that at present, the company is verifying the company’s suspected illegal facts and financial data in the “Notice”. It is expected that the company’s net profit attributable to the parent from 2016 to 2020 will be negative, which may involve major illegal delisting situations. The company will Make retrospective adjustments to the financial statements from 2015 to 2020 as soon as possible.
*ST Yijian also failed to disclose the illegal facts of the 2020 annual report in a timely manner. On April 30, 2021, Yijian shares announced that the company could not disclose the audited 2020 annual report within the statutory time limit, and the company's stock will be suspended from May 6, 2021. On July 6, 2021, Yijian Shares disclosed its 2020 annual report.
In addition, *ST Yijian did not truthfully disclose the actual controller in the 2015 to 2018 annual report. From 2015 to September 2018, and from October 2018 to December 2018, the controlling shareholder of Yijian Co., Ltd. was Jiutian Group, and the actual controller was Leng Tianqing. Yijian Co., Ltd. did not truthfully disclose the actual controller.
*ST Yijian was once hailed as the "first blockchain stock" of A-shares. Yijian Stock was formerly known as "Hejia Stock", and its predecessor was Hejia Stock, a listed company in Sichuan, which was listed in 1997. In 2016, Hejia started the blockchain business and announced its cooperation with IBM to jointly develop the "Easy Block System 1.0" system. In the process, IBM provided an enterprise-level blockchain platform based on Hyperledger Fabric. Since 2017, the main business of Hejia Co., Ltd. has been supply chain management and commercial factoring. In order to reflect the industry and development needs of the company, Hejia Co., Ltd. changed its name to Yijian Co., Ltd. in April of the same year. Afterwards, Yijian shares also became famous in the market, becoming "the first A-share blockchain stock".
As of the latest, the closing price of *ST Yijian’s stock is 0.78 yuan per share, which has dropped 97% from the historical high of the company’s stock price. As of the end of the first quarter, the company had nearly 44,000 shareholders.
*ST ECCOM was investigated by the China Securities Regulatory Commission
On the eve of the exchange's decision to delist, *ST ECCOM was also investigated by the China Securities Regulatory Commission.
On the evening of May 9th, *ST ECCOM announced that the company received the "Notice of Case Filing" from the China Securities Regulatory Commission on May 9, 2022. Because the company was suspected of information disclosure violations, according to relevant laws and regulations, the China Securities Regulatory Commission decided to file a case against the company. .
The specific reasons for being investigated by the China Securities Regulatory Commission are still unknown. However, there are many problems in *ST ECCOM's previous operations, including the court's refusal to accept the application for reorganization, being included in the list of dishonest persons subject to enforcement, large-scale reduction of shareholders' holdings, difficult production of audit reports, and change of accounting firms for annual audits.
*ST ECCOM has been included in the list of dishonest persons subject to enforcement. Due to insufficient liquidity, *ST ECCOM failed to fulfill the repayment obligations stipulated in the effective legal documents within the time limit. On April 26 this year, *ST ECCOM was added to the list. In addition, *ST ECCOM is in a difficult predicament of high debt and shortage of funds. At the same time, *ST ECCOM’s bankruptcy reorganization has not been accepted by the court, and major bank accounts have been seized and frozen due to debt overdue litigation.
The listed company has been sentenced to delisting, and the life of the major shareholders is not easy. According to the announcement of *ST ECCOM, some of the shares of *ST ECCOM held by ECCOM Ark Technology Co., Ltd. will be subject to the first judicial auction. 16.41% of the company's total share capital. If the public auction of the above-mentioned shares is finally completed, it may cause changes in the company's controlling shareholder and actual controller. The auction is currently in the publicity stage.
There are 25 companies awaiting sentencing
2021 is the first year for the implementation of the new delisting regulations. According to incomplete statistics from reporters from 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 reached the red line of delisting in 2022, a record high. Among them, 8 companies have reached the indicator of "operating income less than 100 million yuan + negative net profit", and the effect of the new delisting regulations is showing. .
According to data from the Shanghai Stock Exchange, as of now, 21 companies are expected to delist of various types. Among them, it is expected that 17 companies will be terminated from listing when they hit the financial delisting indicator, and 9 of them will touch the financial combination indicator of "deduction of non-net profit + operating income". In addition, the delisting Xinyi involved major illegal delisting, and three companies, including Andre and *ST Guangzhu, exited through diversified channels such as restructuring and voluntary delisting.
At present, *ST Iger and delisted Xinyi have been delisted and withdrawn from the A-share market; delisted Zhongxin and delisted Laxia have completed the delisting arrangement period and are waiting to be delisted; Delisting, delisting Xishui, and delisting Lvting 5 companies are in the delisting preparation period.
In addition to the above-mentioned companies that have announced delisting, according to incomplete statistics from the Securities Times reporter, there are currently 25 companies that have received prior notice of delisting from the exchange, including *ST Bangxun, *ST King Kong, *ST Mengshi , *ST Chenxin, *ST Danbang, *ST Dewei, *ST Shenglai, *ST Contemporary, *ST Baode, *ST Tianshou, *ST Kedi, *ST Xinguang, *ST Lvjing, * ST Donghai A, *ST Xiahua, *ST Jitang, *ST Zhongying, *ST Haiyi, *ST Shuzhi, *ST Global, *ST Wangli, *ST Julong, *ST Jintai, *ST Teng Bang, *ST Haichuang.
Most of the above-mentioned companies are involved in financial delisting situations, and are currently in the process of waiting for the exchange to decide whether to terminate the listing. Cheng Xiang, a strategic analyst at Shenwan Hongyuan, believes that overall, the number of companies that have been forced to delist this year has hit a record high, and a normalized delisting mechanism is taking shape. The new market ecology is gradually constructed. The new delisting regulations will have a deterrent effect on listed companies, and will help encourage listed companies to adjust their business strategies in a timely manner and achieve stable operations. On the whole, after the implementation of the new delisting regulations, good results have been achieved, further purifying the capital market environment.
Author: Wang Jun
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