The stock price is less than 0.5 yuan, and these two companies may lock in the face value in advance and delist

Since the beginning of 2024, there have been *ST Huayi (600290.SH), *ST Bolong (002776.SZ), *ST Oceanwide (000046.SZ), ST Guiren (603555.SH), ST Hongda (002002.SZ), * ST Aidi (002740.SZ) and other listed companies have touched the mandatory delisting of the trading class, that is, the closing price of the stock for 20 consecutive trading days is less than 1 yuan, and it has been delisted, and ST Xingyuan (000005.SZ) has received the decision to terminate the listing of the stock. Recently, two other listed companies have also locked in the face value in advance and delisted, namely *ST Civil Control (000416.SZ) and *ST Meisheng (002699.SZ).

Source: Photo.com

Listed for 28 years, from Qingdao Department Store to Minsheng Holdings

On April 22, 2024, *ST Civil Control announced that as of April 19, the closing price of the company's shares was below 1 yuan for 17 consecutive trading days. According to the Shenzhen Stock Exchange Stock Listing Rules, if the closing price of the company's shares is lower than 1 yuan for 20 consecutive trading days, the company's shares will be terminated from trading. It is worth noting that on April 19, the closing price of *ST civil control shares was 0.47 yuan per share, and even if the next three trading days were continuously limited, it was almost impossible for its stock price to return to more than 1 yuan, so it locked the face value in advance and delisted.

*ST Civil Holdings, formerly known as Qingdao Domestic Products Co., Ltd. (hereinafter referred to as Qingdao Domestic Products), was the largest department store in Qingdao at that time, which landed on the Shenzhen Stock Exchange in 1996 and achieved an operating income of 405.176 million yuan and a net profit of 21.0805 million yuan in the year of listing. At that time, Qingdao domestic products had set a development goal of achieving annual sales of 1.5 billion yuan and total profits of more than 100 million yuan in 2000, but the company's performance continued to decline after listing, and in 1999 and 2000, the stock abbreviation was changed to ST domestic products.

In September 2000, Qingdao Commercial Corporation (CCCC), the largest shareholder of Qingdao Domestic Products, signed an equity transfer agreement with Shanghai Huaxin Investment Co., Ltd. (hereinafter referred to as Huaxin Investment) to transfer 28.11 million shares of the company to Huaxin Investment, accounting for 24.73% of the total share capital of Qingdao Domestic Products. Before the completion of the equity transfer, the commercial company entrusted the above 28.11 million shares to Huaxin Investment Management, and Huaxin Investment became the controlling shareholder of Qingdao Domestic Products.

In July 2001, Qingdao Guobao started a major asset restructuring, and after stripping most of its commercial assets and liabilities to the commercial company, it sold part of the real estate to Huaxin Investment and acquired 90% of the shares of Wuxi Jiante Pharmaceutical Co., Ltd. (hereinafter referred to as Jiante Pharmaceutical) held by Huaxin Investment at a price of 285 million yuan.

Jiante Pharmaceutical Co., Ltd. is mainly engaged in the processing, manufacturing and sales of health food, and the platinum of the brain, which once sold well in the country, is the core product of Jiante Pharmaceutical. Through asset restructuring, Qingdao domestic products have entered the biomedical and health care products industry. In October 2001, Qingdao domestic products changed its name to Qingdao Jiante Biological Investment Co., Ltd. (hereinafter referred to as Jiante Biotechnology), and the stock abbreviation was changed to ST Qingjian, and the company achieved profitability that year, and its performance in 2002 was tripled.

However, the sales growth of brain platinum soon fell into a bottleneck, Jiante Biology began to gradually sell Jiante Pharmaceutical, in April 2007 after the equity transfer no longer holds the equity of Jiante Pharmaceutical, during this period the company also developed in the direction of other industries, has tried to enter the blood products, coal products and other fields but failed to do so, and returned to the commodity retail industry again. In January 2008, Jiante Biotech changed its name to Qingdao Huaxin Industrial Co., Ltd., and the stock abbreviation was changed to Huaxin Industrial.

In December 2008, Huaxin Industrial was renamed Minsheng Investment Management Co., Ltd. again, and the stock abbreviation was changed to Minsheng Investment.

In 2014, Minsheng Investment changed its name to Minsheng Holdings Co., Ltd., and the stock abbreviation was changed to Minsheng Holdings. In 2017, the operating income decreased by 78.32%. During the subsequent period, the performance of Minsheng Holdings fluctuated and declined, with an operating income of only 19.6479 million yuan and a net loss of 28.5755 million yuan in 2022. In 2023, the company expects a loss of 68.5 million yuan to 135 million yuan.

The merger and acquisition of Meisheng Culture was unfavorable, and it was filed twice by the Securities Regulatory Commission

As of April 19, 2024, the closing price of *ST Meisheng shares is 0.49 yuan per share, and the closing price has been below 1 yuan for 16 consecutive trading days.

*ST Meisheng is mainly engaged in animation and apparel business, and was listed on the Shenzhen Stock Exchange in 2012. In March 2017, Meisheng Culture signed an equity acquisition agreement with Meisheng Holding Group Co., Ltd. (hereinafter referred to as Meisheng Holdings) to acquire 100% of the shares of Hangzhou Zhenqu Network Technology Co., Ltd. (hereinafter referred to as Zhenqu Network) held by Meisheng Holdings at a price of 11110000000 yuan, thus entering the field of game service business.

It is worth mentioning that although Meisheng Holdings, the original shareholder of Zhenqu Network, is the controlling shareholder of Meisheng Culture, because Meisheng Holdings has obtained the equity of Zhenqu Network for less than a year, Meisheng Culture has not treated this transaction as a business combination under the same control, and the acquisition of Zhenqu Network has formed a goodwill of 953.5854 million yuan.

Meisheng Holdings promised that the non-net profit deducted from 2017 to 2019 by Zhenqu Network would not be less than 102 million yuan, 118 million yuan, and 137 million yuan respectively, but after the acquisition, the net profit of Zhenqu Network fell all the way, and the net profit in 2019 was only 94.5062 million yuan, failing to achieve the promised performance. In 2020, Zhenqu Network even had a net loss of 415.1064 million yuan, and Meisheng Culture made full impairment provisions for related goodwill, and it was also from this year that Meisheng Culture fell into a long-term loss.

In addition, Meisheng Culture also has the problem of illegal information disclosure. In June 2022, the China Securities Regulatory Commission (CSRC) opened an investigation into Meisheng Culture. It was found that in 2020 and 2021, Meisheng Holdings and its affiliates illegally occupied a total of 2.957 billion yuan of the company's funds, and Meisheng Culture violated external guarantees totaling 340 million yuan. In November 2023, the China Securities Regulatory Commission issued the "Administrative Penalty and Market Ban Decision" to Meisheng Culture. Four months later, in March 2024, Meisheng Culture and its actual controller were again filed by the CSRC on suspicion of illegal information disclosure.

In addition to *ST Civil Control and *ST Meisheng, as of the close of trading on April 19, 2024, there are a number of listed companies whose stock prices have fallen below 1 yuan, and some of them have closed below 1 yuan per share for many consecutive trading days, including *ST Meishang (300495.SZ), *ST Xinfang (002087.SZ), *ST Tai'an (002433.SZ), ST Shimao (600823.SH), Zhongnan Construction (000961. SZ) and Baoli Xin (300116.SZ), etc.