Just now, two more A-share companies were forcibly delisted!

Fraud after listing, the former dairy giant fell

  On the evening of the 24th, two more A-share listed companies were forcibly delisted!

  On the evening of May 24, the Shenzhen Stock Exchange announced that it had decided to terminate the listing of the shares of two companies, Kedi Dairy ("*ST Kedi") and Xinguang Yuancheng (*ST Xinguang).

  The stocks of the above two companies will enter the delisting arrangement period from June 1, and the Shenzhen Stock Exchange will delist the company's stocks on the trading day following the expiration of the delisting arrangement period.

*ST Kodi was forcibly delisted

  The Shenzhen Stock Exchange announced that *ST Kedi was issued an audit report with no opinion due to the 2020 annual report, and the company's stock trading has been issued a delisting risk warning since May 6, 2021.

On the evening of April 30 this year, the 2021 annual report disclosed by the company was issued an audit report that could not express an opinion, involving the termination of the listing of the stock.

  Zhongzheng Jun noted that *ST Kodi's 2021 annual report shows that its revenue was 591 million yuan, a year-on-year increase of 24.22%; its net profit was 69.048 million yuan, a year-on-year increase of 105.69%.

Although the financial data turned losses into profits, the accounting firm issued an audit report of "disclaimer of opinion" on the annual report.

  The reasons for the accounting firm to make the above audit judgment include:

  There are still significant uncertainties in the reorganization of the controlling shareholder Kedi Group, and the accountants cannot obtain sufficient evidence to express opinions on the recoverability and end-of-period impairment of the capital occupied by Kedi Group;

  From 2016 to 2018, the accumulated inflated profits of Kedi Dairy were about 300 million yuan to offset the funds occupied by the Kedi Group. The accountants could not obtain sufficient evidence to express their opinions on the impact of the matter on the beginning of the financial report period and whether adjustments were necessary;

  Cody Dairy has been involved in multiple lawsuits due to overdue debts and external guarantees, some accounts have been frozen, and it has suffered damages.

former dairy giant

  Cody was once one of the well-known dairy brands in China.

Cody was established in 1985 and started with canned and frozen food. The company entered the dairy market in 1998 and made a large-scale investment.

In 2015, Kedi Dairy was successfully listed on the SME board.

  However, after the listing, Cody Dairy did not usher in great development, but embarked on a road of no return for financial fraud.

The relevant punishment results of the China Securities Regulatory Commission show that Cody Dairy has inflated its performance since the second year after its listing in 2015. In the past three years, it has inflated 800 million yuan in revenue and 300 million yuan in profit.

  In September 2021, Cody Dairy was fined 600,000 yuan by the Henan Securities Regulatory Bureau for three consecutive years of inflated profits and income from 2016 to 2018. Zhang Qinghai, the then chairman and founder of Cody Dairy He was banned from entering the securities market for 10 years and was fined 900,000 yuan.

  On April 6 this year, Cody Dairy announced that Zhang Qinghai resigned from the company's director, chairman and various special committees, and Zhang Fenghua, the general manager, performed the duties of the company's chairman on his behalf.

On the same day, Cody Dairy announced that Zhou Bin, the company’s head of internal audit, resigned and was replaced by Song Yingmei.

The annual report was non-standard * ST Xinguang was forced to delist

  In addition to *ST Cody, *ST Xinguang was also terminated on the evening of May 24th.

  The Shenzhen Stock Exchange pointed out that *ST Xinguang has been issued a delisting risk warning since April 29, 2020 due to its audited net profit attributable to shareholders of listed companies for two consecutive years in 2018 and 2019. Because the audited net assets at the end of the period in 2020 were negative, the company's stock trading was subject to a delisting risk warning.

On April 30 this year, the 2021 annual report disclosed by the company showed that the company's 2021 annual financial and accounting report was issued an audit report with a qualified opinion, which involved the termination of listing on the Shenzhen Stock Exchange.

  *ST Xinguang released its annual performance report on the evening of April 30, stating that the operating income in 2021 will be about 1.756 billion yuan, a year-on-year increase of 5.2%; the net profit attributable to shareholders of listed companies is about 701 million yuan; basic earnings per share are 0.38 yuan.

  Zhongzheng Jun noticed that *ST Xinguang is a "protected shell", and has carried out a series of debt relief operations in 2021. The financial data has met the protective shell conditions, but the financial data has not been recognized by the audit institution, giving Audit opinion with a "qualified opinion".

  The annual audit accountant explained the "reserved opinion": it is impossible to obtain sufficient and appropriate audit evidence on whether the pledged equity and pledged real estate can fully cover the sincerity fund of Shin Kong Yuancheng that has not been provided for bad debts in the process of future disposal or realization. It was also uncertain whether any adjustments to these amounts were necessary.

Normalization of A-share delisting

  In addition to *ST Cody and *ST Xinguang, this week, *ST Tengbang, *ST Danbang, *ST Shenglai and other stocks were terminated from listing, and the two stocks of Deaotui and Dongdianhui were delisted from the exchange. .

  In recent years, with the advancement of the registration system reform and the continuous improvement of the delisting system, the delisting efficiency has been greatly improved.

Since the beginning of this year, more than 40 listed companies have sounded the delisting alarm.

  At the end of March this year, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Opinions on Promoting the Construction of a Social Credit System and High-Quality Development and Promoting the Formation of a New Development Pattern".

  At the same time, in order to meet the requirements of the registration system reform and normalized delisting, and further improve the supervision of listed companies after delisting, the China Securities Regulatory Commission recently issued the "Guiding Opinions on Improving the Supervision of Listed Companies After Delisting", which will rely on existing As the delisting sector, some agency share transfer systems optimize and improve the blocking points and risk points existing in the current practice in accordance with the principles of "smooth connection, appropriate supervision, risk prevention, and formation of synergy".

(Qi Jinzhao)

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