The delisting risks of many *ST companies are highlighted——
Delisting is normal and cautiously speculating ST stocks
Our reporter Li Hualin
With the continuous deepening of the registration system reform and the gradual establishment of a normalized delisting mechanism, the clearance of the A-share market has accelerated since this year, and the number of companies subject to delisting risk warnings (*ST) has increased. Investors are pleased with the acceleration of the survival of the fittest in the market. At the same time of formation, we also pay more attention to the delisting risk of *ST company.
So, what is the current risk of delisting *ST?
Has the ethos of scrambled shells subsided?
How to supervise the behavior of evading delisting?
Delisting risks of some companies appear
The semi-annual report is an important window for observing the risk of delisting of listed companies.
The reporter combed through the statistics of iFinD and found that in the first half of the year, 91 ST listed companies had a negative year-on-year growth in net profit, and 48 ST listed companies had a negative year-on-year growth in operating income.
The weak growth of the main business was the main reason for the losses of these companies in the first half of the year.
For example, ST Dehao stated that in the first half of the year, in the face of unfavorable situations such as raging foreign epidemics and repeated domestic epidemics, the company actively took measures to overcome difficulties and maintain normal production and operation. The operating income for the current period achieved a year-on-year growth, but it still failed to reverse. Loss situation.
Some companies continue to lose money due to liquidity, debt crisis and other reasons.
For example, when ST Lin Zhong explained the reasons for the loss in the first half of the year, one of the main reasons was that the company was limited by its liquidity scale and could not produce at full capacity, so its operating income decreased compared with the same period last year.
The risk of delisting some ST companies has increased.
According to the new delisting regulations that have been implemented this year, the financial delisting time has been reduced from three years to two years, that is, one year of delisting with negative net profit before and after deduction and revenue of less than 100 million yuan The indicator will be issued a delisting risk warning, and the delisting indicator will be immediately terminated if it touches the delisting indicator for two consecutive years.
According to statistics from Flushing iFinD, there are currently 184 companies on the Shanghai and Shenzhen stock market risk warning boards. There are 108 *ST companies with delisting risks. Among them, nearly 30 *ST companies have revenues of less than 50 million yuan in the first half of the year and have net revenues. According to this figure, it is very likely that the annual income will be less than 100 million yuan and the net profit will be negative before and after the deduction, which means that the delisting indicator will be touched.
From the audit opinion delisting indicators, the delisting risks of some companies are also emerging.
For example, *ST Zhongxin, *ST Mingke, *ST Kangmei and many other companies have been issued in their 2020 annual reports that cannot express their opinions. According to the current rules, if the 2021 annual reports continue to be issued with negative opinions, no opinions, or even reservations, Will directly face delisting and delisting.
From the perspective of the semi-annual report, the current situation of many companies unable to express their opinions has not been eliminated, and no obvious signs of improvement have been shown. After the disclosure of the 2021 annual report, they are facing the risk of being directly delisted and delisted.
"Compared with previous years, there are more *ST companies with delisting risks this year." According to Tian Lihui, Dean of the Financial Development Research Institute of Nankai University, this is affected by multiple factors: First, under the impact of the epidemic, some companies with insufficient core competitiveness Continued lack of profitability and increased operating risks; secondly, under the new delisting regulations, the regulatory authorities have severely cracked down on irregularities such as rushing to construct income, vigorously promoted on-site inspections, and implemented retiring; in addition, intermediary agencies have been "gatekeepers" since this year. The performance of duties is obvious, and some shell companies that have not had their main business for a long time will speed up the liquidation.
Individual stocks bucked the trend and rose irrationally
The implementation of delisting risk warnings for listed company stocks and the implementation of a differentiated trading mechanism are designed to warn investors of the current delisting risk situations faced by the company and remind investors to pay full attention to the company's operating risks and make prudent decisions when trading stocks.
However, in reality, some ST companies have not improved their operations and their share prices have continued to rise, which has aroused market concern.
According to data from Flush iFinD, as of the close of the market on September 17, since the beginning of this year, the stock prices of 114 ST listed companies have risen cumulatively, and the stock prices of 21 ST companies have doubled.
The reason is that the rise in stock prices of some ST companies is due to the expected return of operating business to profit or restructuring.
For example, *ST Energy Conservation’s net profit attributable to shareholders of listed companies in the first half of the year was approximately 1.962 billion yuan, a year-on-year increase of 1623%, and it turned losses into profits. Its stock has risen by more than 200% since the beginning of this year.
However, the stock price of most ST companies lacked sufficient fundamental support, the main business growth was weak, the delisting crisis had not been alleviated, and the market speculation was obvious.
For example, *ST Chengxing’s operating income in the first half of the year was approximately 1.48 billion yuan, a year-on-year decrease of 0.02%. The net profit loss attributable to shareholders of the listed company was approximately 3.26 million yuan. However, the company’s shares were released on September 15, September 16, and September 17. The deviation of the closing price increase for three consecutive trading days on the same day has exceeded 15%. Then the company issued an announcement saying that as of now, there is no matter that may have a significant impact on the company’s stock trading price, and there is no significant information that the company should disclose but has not disclosed. .
"The stock prices of poorly performing companies have risen irrationally, most of which are caused by market control and herd behavior. Such rises are often short-lived. Afterwards, they are usually full of feathers. Most small and medium investors who follow suit tend to suffer heavy losses." Tian Lihui said, This has disrupted the order of the capital market. Next, the regulatory authorities should strengthen the penetrating supervision of ST sector trading capital accounts, and strictly control the unhealthy atmosphere of speculation and speculation.
"Under the normalization of delisting, the market environment and ecology have undergone major changes. Shell resources have accelerated depreciation, and the risk of speculation in poorly performing stocks has increased significantly. Temporary speculation cannot last. Investors cannot use the old calendar to see new problems. We should stay away from junk stocks. If we are still keen to speculate on small markets, it will undoubtedly be out of the fire, which will eventually outweigh the gains.” said Dong Dengxin, director of the Institute of Financial Securities, Wuhan University of Science and Technology.
Continuously strengthen delisting supervision
Since the implementation of the new delisting regulations, the regulatory authorities have continuously increased their supervision, strengthened the rigidity of delisting, resolutely delisted those that meet the delisting standards, severely cracked down on malicious evasion of delisting standards, and promoted the establishment of a normalized exit mechanism.
According to the data, as of July, 96 companies have been delisted due to the new regulations and 24 companies have been delisted, including 17 compulsory delisting, 6 restructuring and delisting, and 1 voluntarily delisting. The concept of "should be retired and retired" has been fully manifested.
Under strict supervision, it is increasingly difficult to escape the "legal eye" of the regulatory authorities for some attempts to relied on speculation and fraud.
There are also attempts to achieve "reported" profitability through various "financial skills", or relying on assaults to construct transactions to avoid delisting, which will also be difficult to pass.
According to the reporter's understanding, as of the end of August 2021, all 68 companies in Shenzhen Stock Exchange have been subject to delisting risk warnings.
The new delisting regulations have greatly shortened the delisting process. If relevant companies hit the delisting indicators for two consecutive years, they will quickly reach the end of the delisting.
In the next step, the Shenzhen Stock Exchange will strictly implement the new delisting regulations, prevent violations of the rules, and resolutely crack down on malicious evasion of delisting such as financial fraud.
One is to improve relevant rules.
The Shenzhen Stock Exchange will further improve relevant regulations in the area of delisting and introduce guidelines for deduction of operating income to facilitate listed companies and accounting firms to do the relevant work.
The second is to strengthen the supervision of revenue deduction.
For companies with operating income close to 100 million yuan, the focus will be on whether there are new trading businesses, unreasonable revenue recognition, and revenue deductions that are not deducted, and other new protection methods that avoid delisting risk warnings through revenue deductions, etc., will be adopted Inquiry and concern, require annual audit accountants to verify, interview, report to the China Securities Regulatory Commission, and submit for inspections and other measures.
In response to deductions and undeducted items, the company will be urged to correct in a timely manner and prompt risks; for deductions of "income without commercial substance", full attention will be paid to the authenticity of the relevant income recognition, and the relevant departments will be reported to help the relevant departments to seriously investigate and deal with financial fraud .
The third is to compact the responsibilities of intermediary agencies.
The Shanghai Stock Exchange will comprehensively strengthen the review of periodic reports by risk companies. For companies that are evading delisting, they will conduct key reviews and strict inquiries, and pay attention to their operating income, the sustainability of their business models, and the compliance of accounting treatments. Wait.
At the same time, combined with the daily supervision situation in the second half of the year, we will further investigate the delisting risk warning company situation, pay attention to it in real time, and initiate the coordinated supervision of the clubs in a timely manner.
Pay attention to key cases and deal with them in a timely manner, improve the effectiveness of information, clarify market expectations as soon as possible, and realize the market consensus of "retreat and retreat".
At the same time, we will improve the revenue deduction system and severely crack down on the structure of revenue to avoid delisting; improve auditing and supervision, and quickly investigate and quickly deal with typical violations, forming a deterrent to the performance of intermediary agencies, and escorting the implementation of the delisting system.
Tian Lihui said that if *ST companies want to avoid being liquidated in the future, they should practice hard work, focus on the main business, and effectively improve profitability, or introduce good assets for substantial reorganization and mergers and acquisitions.
"In the long run, with the comprehensive advancement of the registration system reform, IPOs will become more convenient. In addition, the new delisting regulations become more mature and perfect, and the risk of avoiding delisting increases. The only attribution is to withdraw from the market, and the trend of speculation and speculation will gradually disintegrate.” Dong Dengxin said that the new delisting regulations encourage big waves to wash the sand, in and out. It is estimated that the number of delisting companies will increase this year, and the market ecology of survival of the fittest will accelerate. .