20,000 shareholders are worried!

Two more companies announced delisting, all for similar reasons!

A shares accelerate the survival of the fittest, and the number of delistings this year may hit a new high

  Soon after companies such as *ST Laxia and *ST Changdong were terminated from listing, two more A-share companies announced their delisting.

  On the evening of May 10, the Shanghai Stock Exchange issued a decision to terminate the listing of *ST Xishui and *ST Green Court. Both companies were sentenced to delist due to financial delisting.

The latest data shows that the number of shareholders of the two companies is close to 120,000, of which the latest number of shareholders of *ST Xishui is 63,800, and the number of *ST Green Court is 54,100.

  According to incomplete statistics from Securities Times reporters, under the new delisting regulations, more than 40 companies in the A-share market will be delisted this year, and most of them will be financial delistings. This number will hit a record high.

  Institutional analysis shows that in the past, the number of A-share delistings was small and most of them were active delisting, resulting in the occupation of listing resources.

In recent years, the delisting of A-shares has gradually become normalized, and “zero tolerance” has been implemented for financial fraud and other behaviors.

The delisting system matches the comprehensive registration system to speed up the metabolism of A shares.

  *ST Xishui and *ST Green Court announced their delisting

  On the evening of May 10, *ST Xishui issued an announcement on receiving the decision to terminate the listing of stocks. The company's stocks will enter the delisting period from May 17, and the last trading date is expected to be June 7.

  Due to the fact that the audited net profit in 2020 was negative, the operating income was less than RMB 100 million, and the financial accounting report was issued with an audit report that could not express an opinion, the company's shares were issued a delisting risk warning from May 6, 2021.

  On April 30, the company disclosed its 2021 annual report, and China Audit Asia Pacific Certified Public Accountants (special general partnership) issued an audit report with no opinion on the company's 2021 financial and accounting report.

  This situation involves the termination of listing of stocks stipulated in Article 9.3.11 of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange.

After review by the Listing Committee of the Shanghai Stock Exchange, it was decided to terminate the listing of the company's stock.

  Starting from the next trading day after the expiration of 5 trading days after the announcement of the delisting decision by the Shanghai Stock Exchange, the company's shares will enter the delisting arrangement period for trading, and the final trading date is expected to be June 7.

  Coincidentally, along with *ST Xishui, *ST Green Court and *ST Green Court B received the delisting decision from the Shanghai Stock Exchange. The company's stock will also enter the delisting period from May 17, and the last trading date is expected to be June. 7th.

  Because the audited net profit in 2020 is negative and the operating income is less than RMB 100 million, the company's shares have been issued a delisting risk warning by the Shanghai Stock Exchange.

  The company disclosed the "2021 Annual Report" on April 26. The report shows that the audited operating income in 2021 is 97.7493 million yuan, the operating income after deducting business income unrelated to the main business and income without commercial substance. RMB 611,100, and the audited net profit after deducting non-recurring gains and losses was RMB -31,206,200.

  This situation involves the termination of listing of stocks stipulated in Article 9.3.11 of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange.

In accordance with the provisions of Article 9.3.14 of the "Shanghai Stock Exchange Listing Rules", upon review by the Shanghai Stock Exchange Listing Committee, it was decided to terminate the listing of the company's A shares and B shares.

  After the stocks of the above two companies are terminated from listing, they will be transferred to the National Small and Medium Enterprises Share Transfer System for share transfer.

  A-share delisting companies may exceed 40 this year

  Before the delisting of the above two companies, there were *ST Bangxun, *ST King Kong, *ST Mengshi, *ST Chenxin, *ST Danbang, *ST Shenglai, *ST Contemporary, *ST Prima, etc. Dozens of companies issued announcements saying that after receiving regulatory work letters or advance notices issued by exchanges, the company's shares may be terminated from listing.

  2021 is the first year for the implementation of the new delisting regulations. According to incomplete statistics from Securities Times reporters, there will be more than 40 A-share delisting companies this year.

According to data released by the Shenzhen Stock Exchange, 24 companies have reached the red line for delisting in 2022, hitting 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 has appeared. .

  Data from the Shanghai Stock Exchange shows that as of now, 21 are expected to be delisted.

Among them, it is expected that 17 companies will be terminated from listing if they hit the financial delisting indicator, and 9 of them will hit the financial portfolio indicator of “deducting non-net profit + operating income”.

In addition, the delisting of Xinyi involved major illegal delisting, and three companies including Andre and *ST Guangzhu exited through diversified channels such as restructuring and active delisting.

  This means that the number of companies delisting this year will likely reach 45, which is almost double the number of delistings in the whole of last year.

Wind data shows that in 2021, a total of 23 companies will be delisted in the A-share market (14 in Shanghai and 9 in Shenzhen).

  The number of delisted companies has increased sharply this year, which is related to the new delisting regulations introduced earlier.

The new delisting regulations clarify and refine specific delisting standards such as financial indicators, transaction indicators, norms, and major violations, including clarifying the delisting face value, adding quantitative and executable delisting indicators, and risk warning situations, etc. .

  In terms of financial delisting, a listed company will be issued a delisting risk warning (*ST) if it hits the financial delisting indicator within one year, and will be terminated if it hits the financial delisting indicator for 2 consecutive years, and the delisting adjustment period will be set for the trading time limit. Shortened from 30 trading days to 15 trading days.

  Most of the companies delisted this year are due to the financial delisting situation, and the power of the strict new delisting regulations has emerged.

Kaiyuan Securities believes that the advancement of the registration system will continue to accelerate the trend of marginalization of tail companies, thereby reducing the resistance to the operation of the new delisting regulations.

The efficient operation of the delisting system will strengthen the survival of the fittest in the market, which in turn will provide a guarantee for the deepening reform of the registration system, and ultimately form a positive feedback from the capital market.

  The delisting mechanism is gradually improving

  Under the situation of the full implementation of the registration system, delisting will become normal, and the regulators are also continuing to improve the delisting mechanism.

  On April 29, the China Securities Regulatory Commission issued and implemented the "Guiding Opinions on Improving the Post-Delisting Supervision of Listed Companies", which aims to improve the delisting mechanism of listed companies, strengthen the connection of procedures and optimize continuous supervision, and further adapt to the reform and normalization of the registration system. Delisting requirements.

  In addition, the Shanghai and Shenzhen Stock Exchanges issued operating income deduction guidelines last year, aiming to clarify the specific deductions for operating income in the financial delisting indicators.

Analysts pointed out that this move precisely cracked down on the company's assault on "protecting the shell". After the income unrelated to the company's main business is deducted, it is difficult for companies on the verge of delisting to play tricks at the level of revenue.

  Previously, *ST Chenxin issued an announcement saying that the company received a letter of concern from the Shenzhen Stock Exchange, and the accountants hired by the company believed that the income from the paper business should be regarded as "business income unrelated to the main business" as a deduction of operating income in 2021.

After deduction, the company's stocks may be subject to financial termination of listing, and the Shenzhen Stock Exchange requires the company to fully remind the risk that the stock may be terminated from listing, and remind investors to trade rationally.

  Shenwan Hongyuan said that the delisting system is a necessary supporting system for the successful implementation of the registration system. Only by the survival of the fittest can the registration system play an important role in optimizing the quality structure of the target, realize the balance of investment and financing in the capital market, and form a healthy endogenous cycle in the capital market. An important part of the company's quality.

  Guotai Junan also pointed out that a smoother delisting system is an important supporting measure for the smooth implementation of the comprehensive registration system, which can alleviate the pressure of market expansion under the registration system, and at the same time achieve a dynamic balance of the number of A-share listings, and better utilize the resources of the capital market. configuration function.

Under the protection of the normalized delisting system, the implementation of the comprehensive A-share registration system can be expected.

Keywords: