On April 15, the first trading day after the introduction of the new "National Nine Articles", on the investor interactive platform, the impact of the new regulations on dividends and delisting on listed companies became the focus of investors' attention, and many listed companies responded to the immediate impact.
On April 12, the State Council promulgated the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market". In order to promote the implementation of the "1+N" policy system, on the same day, the Shanghai and Shenzhen North Stock Exchanges simultaneously solicited opinions from the public on 19 specific business rules such as the "Stock Issuance and Listing Review Rules" and "Stock Listing Rules", involving improving listing conditions, standardizing shareholding reduction, strengthening mergers and acquisitions and restructuring supervision, improving dividend regulatory requirements, and strict delisting standards.
Li Xuemei, a partner in the capital market services department of PwC China, told the Shell Finance reporter that the new "National Nine Measures" have released a signal to enhance the internal stability of the capital market, echoing the requirements of this year's government work report. The "winner or loser" of the long-term stability and high-quality development of the capital market lies in the quality of listed companies, and the quality of listed companies is also the bottom line for risk prevention. Relatively speaking, improving the quality of existing listed companies is a gradual process, and strict access to issuance and listing can have an immediate effect, so that the market can clearly perceive the "investor-oriented" regulatory concept.
In her view, improving the issuance and listing system, strengthening the whole chain of responsibility for issuance and listing and increasing the intensity of issuance and underwriting supervision are the three progressive links of strict issuance and listing access, as long as these three links adhere to the position of marketization and rule of law, and straighten out the relationship between investors, financiers and regulators, the quality of new listed companies will be significantly improved in the future.
Many listed companies have responded to the risk of not paying dividends or ST for many years
The new "National Nine Articles" propose to strengthen the supervision of cash dividends of listed companies in the part of strict supervision of listed companies.
It is mentioned that for companies that have not paid dividends for many years or have a low dividend ratio, major shareholders are restricted from reducing their holdings and risk warnings are implemented. Increase incentives for high-quality companies that pay dividends, and take multiple measures to promote the increase in dividend yields. Enhance the stability, sustainability and predictability of dividends, and promote multiple dividends a year, pre-dividends, and dividends before the Spring Festival.
In terms of dividends, the Shanghai and Shenzhen Stock Exchanges have proposed restrictive measures for listed companies that do not meet the dividend standards, and set different regulations for different sectors, including companies that have not paid dividends for many years or have a low dividend ratio into the "implementation of other risk warnings (ST)".
Among them, in terms of the main board, ST will be implemented for companies that meet the basic conditions for dividends, the total cumulative cash dividends in the last three fiscal years are less than 30% of the average annual net profit, and the cumulative dividend amount is less than 50 million yuan. Taking into account the characteristics of different sectors and the differences between companies, the Science and Technology Innovation Board and the Growth Enterprise Market have adjusted the absolute value of the dividend amount to 30 million yuan. At the same time, companies with cumulative R&D investment accounting for more than 15% of cumulative operating income in the last three years or more than 300 million yuan in R&D investment in the last three years can be exempted from ST. The amount of repurchase cancellation is included in the calculation of cash dividends.
In response to the new regulations, investors are more concerned about the possibility that listed companies will be subject to "other risk warnings". On the investor interactive platform, investors have raised questions about relevant listed companies, such as Lotus Health, Hangzhou Tooth Advance, Bohai Automobile, Zhongguancun, Jundingda, Jingliang Holdings, Gan Consulting, North Copper, Jufei Optoelectronics and other companies.
"The new transitional period is based on 2024 as the first fiscal year. The Company actively responds to the principles of the 'National Nine Articles' and the requirements of regulatory norms, and is currently preparing a performance dividend plan for 2023, which is not expected to touch the situation of other risk warnings being implemented in this category. On April 15, on the investor interactive platform, Aotejia responded to investors' questions.
Tonghua Jinma said on the same day that according to the corresponding regulations of the Shenzhen Stock Exchange, the company has suffered losses in the process of dealing with non-performing assets for many times, and the undistributed profit has been negative so far, so it does not meet the preconditions for being subject to other risk warnings.
Tongce Medical replied to investors that the company's repurchased shares and repurchases have been reviewed and approved by the board of directors and submitted to the first extraordinary general meeting of shareholders in 2024 on April 17. If approved, the dividend requirement will be met. At the same time, the company's operation is stable, the cash flow is sufficient, and the frequency of dividends can be increased, and the company's management will actively respond to the dividend policy, and there is no situation where it is ST due to dividends.
Delisting supervision has been strengthened, and some companies have said that they will make every effort to improve profitability
The intensification of supervision over the delisting of listed companies is also another focus of investors' attention after the introduction of the new "National Nine Articles".
On the same day that the new "National Nine Articles" were issued, the China Securities Regulatory Commission formulated the "Opinions on Strictly Implementing the Delisting System", proposing strict mandatory delisting standards, requiring scientific setting of the scope of application of mandatory delisting for major violations, strict regulation of delisting situations, and increasing the delisting of companies with poor performance. The Shanghai and Shenzhen North Stock Exchanges have made adjustments to the relevant rules.
Li Xuemei introduced that as a supporting reform measure of the new "National Nine Articles", the exchange level intends to revise the detailed rules related to delisting in the "Stock Listing Rules". The general trend of the revision of financial delisting indicators is tightening, and the requirements for core financial indicators such as revenue and profit are getting higher and higher. This kind of tightening is a powerful means to achieve the survival of the fittest in the capital market, and the underlying logic is to protect investors first.
In this regard, ST Peng, Liugang Co., Ltd., ST Jiuyou, Kangxin New Materials and other companies were asked by investors whether the company will face delisting after the introduction of the new regulations, but most of them have not yet responded to the questions.
Dalian Friendship said on the investor interactive platform on April 15 that the company is paying close attention to the progress of the policy revision of the "National Nine Articles" and the Shenzhen Stock Exchange on delisting standards. The new delisting criteria, if finalized, will apply to companies from 2024. The company will focus on improving the revenue level and profitability of its existing main business, and reduce the risk of delisting as much as possible.
In response to the new "National Nine Articles" proposed to increase the supervision of delisting, Li Xuemei told the Shell Finance reporter that in 2023, a total of 47 A-share companies will be delisted, a record high, of which 44 are forced to delist, 1 is voluntarily delisted, and 2 are restructured and delisted.
In her view, the number of voluntary delistings of A-shares is relatively small, and from a horizontal comparison, the number of A-shares delisted is also lower than that of U.S. and Hong Kong stocks, "mainly because the maintenance cost of A-share listing is negligible compared to the benefits of maintaining the listing status, and the market-oriented mergers and acquisitions of A-share listed companies have not yet started." The new 'National Nine Articles' have strengthened the supervision of delisting, and it has become more difficult to maintain the status of listed companies. One of the signals released by this is that the management of listed companies should pay more attention to their fiduciary responsibilities to investors; the controlling shareholders and actual controllers of listed companies should better assume the responsibility of the 'key minority'; and listed companies should put the return of investors in a more important position and not take maintaining their listed status for granted. ”
At the same time, Li Xuemei believes that the new "National Nine Articles" mentions "establishing and improving the differentiated delisting standard system of different sectors", which also has great reference value for IPO companies, "The positioning of different sectors of A-shares is different, so the delisting criteria should be differentiated according to the positioning of the plate, which is logical and self-consistent." The differentiation of delisting criteria is of intuitive significance to companies to be listed, requiring them to choose a sector that matches the development stage, profit model and profit level of their own enterprises, and to consider the capital market decisions of enterprises at different life cycle stages as a whole. ”
Beijing News Shell Financial Reporter Ding Shuang
Edited by Yue Caizhou
Proofread by Jia Ning