Wary! Crashed by more than 40%, and the worst sector of the year was born! The former faucet fell by nearly 90%!

Securities Times E Company

2024-05-11 17:20Published on the official account of "Company E" under Guangdong Securities Times

On May 10, the ST share sector continued to fall, falling 3.28% during the day, and 63 ST stocks fell to the limit. Looking back on this week, more than 60 ST stocks fell by more than 10%.

Wind data shows that *ST Baoli, *ST Baan, *ST Kaiyuan, ST Lingda, ST Pioneer, *ST Meishang, *ST Shimao, ST Yuancheng, ST Contact, ST Sunshine and other stocks ranked among the top 10 weekly decliners. Among them, the former lithium battery leader *ST Baoli fell by 65% this week, and the cumulative decline was 87% this year.

According to the data, *ST Baoli was formerly known as Jianrui Fire Protection, and the company was listed on the GEM of the Shenzhen Stock Exchange in 2010. In 2016, Jianrui Fire spent 5.2 billion yuan to acquire the equity of Waters at an ultra-high premium of 6 times the valuation to enter the field of power batteries and new energy vehicles. Although for a period of time after the acquisition of Waterma, taking advantage of the east wind of the new energy vehicle industry, *ST Baoli achieved a sharp increase in performance. However, since then, Waters has gradually fallen from the altar and was stripped of the listed company system in 2020, *ST Baoli's performance has lost money for 4 consecutive years from 2020 to 2023, and the company's stock price has also retraced 97% from its all-time high.

On May 10, *ST Baan gained a 20cm drop limit, down 59% this week. On May 9, *ST Ba'an, which has been implemented as a "delisting risk warning" due to the inability to express an opinion on the 2023 annual financial report issued by the annual audit accountant, received an inquiry letter from the Shenzhen Stock Exchange. "Whether the existing disposable monetary funds can meet the needs of daily operations" and "whether there is significant uncertainty about the ability of the main business to continue operations" have become the focus of inquiries by the Shenzhen Stock Exchange.

According to the annual report, the total restricted assets of *ST Baan reached 1.471 billion yuan, and a number of major litigation cases involved a total of 2.294 billion yuan. So far this year, *ST SafBon shares have fallen by 74%.

Underperforming stocks such as *ST Baoli and *ST SafBon have become the focus of the current delisting supervision. Since the beginning of this year, the new delisting regulations have continued to land, and under the upgrading of the delisting system, the value of "shell" resources has been further reduced, triggering this round of ST share sector decline tide.

From the perspective of policy promotion, on April 12 this year, the China Securities Regulatory Commission issued the "Opinions on the Strict Implementation of the Delisting System", and the exchange revised and improved the relevant delisting rules. The new rules add three types of normative delisting situations, including capital occupation, internal control audit opinions, and long-term disorderly competition for control.

On April 30, the end of the annual report season, the three major exchanges in Shanghai, Shenzhen and North officially issued a number of supporting business rules, once again clarifying the strict delisting criteria, and accelerating the formation of a normalized delisting pattern that should be withdrawn and cleared in a timely manner.

The exchange said that the revision of the delisting rules is aimed at "shell zombies" and "black sheep", reflecting the need to retreat as much as possible, highlighting the quality and value of listed companies. At the same time, the new delisting regulations will focus on cracking down on vicious violations of laws and regulations such as financial fraud and capital occupation, and will also strictly implement delisting for companies with internal control failures and capital occupation by controlling shareholders.

According to the new regulations, the revenue requirement for listed companies on the main board has been increased from 100 million yuan to 300 million yuan. Combined with the annual report data of A-share listed companies in 2023, the number of stocks that do not meet the revenue rules has increased from 11 under the old rules to 100. After the 2023 annual report season, more than 30 companies have "worn stars and hats".

Previously, due to speculation factors such as backdoor transactions, mergers and acquisitions, and other factors, bull stocks frequently appeared in the ST share sector. However, under the current trend of accelerating delisting, this phenomenon that has been criticized by the market has gradually changed.

According to statistics from the China Association of Listed Companies, 47 A-share companies were delisted last year, of which 44 were forcibly delisted.

Judging from the stock price performance, the ebb and flow of ST stock speculation is also more obvious. The ST sector index has fallen 41% this year. Industry insiders believe that after the introduction of the new "National Nine Articles" policy, the mainland capital market is entering a new stage of development, the formation of a new ecology of "can enter and exit" of the market is accelerating, and listed companies are facing more stringent regulatory requirements and market tests.

A few days ago, the relevant person in charge of the Shanghai and Shenzhen stock exchanges said that the next step will be to carry out fine supervision of the major asset restructuring of "shell" companies, strictly supervise the companies that have been "delisted risk warning" (*ST) due to the lack of sustainable operation ability and then touch the income and profit indicators, and the companies on the verge of trading delisting indicators plan major asset restructuring, and strictly prevent illegal "shell" and "shell speculation"; Improve the coverage of on-site inspections for major asset restructuring of other *ST, ST and other companies, and effectively control the quality of the underlying assets.

Industry insiders told reporters that with stricter standards and wider dimensions of mandatory delisting, the deterrence of the new delisting regulations is increasing. The proportion of A-shares forced to be delisted due to financial fraud and financial indicators is expected to increase significantly, and the market will accelerate its liquidation. At the same time, with the reduction of the value of "shell" resources, the behavior of "fake restructuring and real shell speculation" will be further cracked down, and the market polarization will continue to intensify in the future. In the long run, cleaning up the poor performance stocks and garbage stocks from the "house" is conducive to the high-quality development of the market ecology.

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