Trainee reporter Wen Yan
This year's first major illegal forced delisting case is about to land!
On the evening of April 17, Xinhai announced that the company's shares had been terminated by the Shenzhen Stock Exchange, and the last trading date of the delisting period was April 17, and it would be delisted on April 18.
A number of annual reports were falsely recorded
On February 5, Xinhai received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission, determining that its annual reports from 2014 to 2019 contained false records.
Specifically, Xinhaihui inflated its sales revenue and profits by participating in the false self-circulation business of private network communication, resulting in false records in the annual report from 2014 to 2019 and the semi-annual report in 2019.
At the same time, the 2019 annual report contained false records due to errors in the correction of accounting errors, errors in audit adjustments, and incomplete confirmation of estimated liabilities.
Among them, Shaanxi Tongjia Automobile Co., Ltd., a shareholding company of Xinhai Withdrawal, received 51.523 million yuan in new energy subsidy income from Shandong Guojin Automobile Manufacturing Co., Ltd., and the accounting error correction and processing error in the early stage led to Xinhai Withdrawal in 2019 to reduce the long-term equity investment at the beginning of the period by 19.6148 million yuan, and to underrecognize the investment loss by 19.6148 million yuan.
The China Securities Regulatory Commission (CSRC) believes that there were false records in the annual reports from 2014 to 2019 and the 2019 semi-annual report disclosed by Xinhaihui, which constituted an illegal act of "false records, misleading statements or material omissions in the reports or information disclosed by the information disclosure obligor" under the first paragraph of Article 193 of the Securities Law of 2005 and the second paragraph of Article 197 of the Securities Law.
Touching the situation of forced delisting in violation of major violations
According to the facts ascertained in the Administrative Penalty Decision and the disclosed annual report of Xinhai Retire, the net profit attributable to the parent company of Xinhai Retirement was negative for three consecutive fiscal years from 2016 to 2018, and the net profit after deducting non-profits in the 2019 fiscal year was negative.
The Shenzhen Stock Exchange believes that the above-mentioned situation of Xinhai Delisting has touched the material illegal forced delisting stipulated in Article 9.5.1 (1) and Article 9.5.2 Paragraph 1 (3) of the Stock Listing Rules (Revised in August 2023) (the "Stock Listing Rules").
On March 18, the Shenzhen Stock Exchange issued the "Decision on the Termination of the Listing of the Shares of Xinhaiyi Technology Group Co., Ltd.", which shows that in accordance with the provisions of Article 9.5.8 of the "Stock Listing Rules" and the deliberations of the Listing Review Committee of the Shenzhen Stock Exchange, the Shenzhen Stock Exchange decided to terminate the listing of Xinhaihui's shares.
Xinhai's withdrawn shares have entered the delisting period since March 26, and the Shenzhen Stock Exchange will delist the company's shares on the next trading day after the expiration of the delisting period, that is, on April 18.
Xinhai announced that the company intends to hire Industrial Securities as the lead broker for the transfer of the company's shares in the share transfer system, and will sign the "Entrusted Stock Transfer Agreement" with Industrial Securities as soon as possible, entrusting it to provide share listing and transfer services for the company, and authorizing it to handle the share withdrawal registration in the stock exchange market, share reconfirmation, initial registration of shares in the delisting sector, and the provision of share transfer services.
Editor: Captain
Review: Muyu