Witness history! The cheapest stock in the history of A-shares was born, and the stock price was less than 1 cent

Finance Associated Press

2024-05-15 19:44Published on the official account of Cailianshe under Shanghai Poster Industry Group

On May 15, the Financial Associated Press reported that as a star enterprise in the field of new energy, Baoli's new delisting is now a foregone conclusion. Due to poor performance, Baoli Xin previously wore a star hat at the end of April, and under the panic selling for many days, as of today's close, Baoli Xin's current stock price is only 0.09 yuan, which is the first stock in the history of A-shares with a stock price of less than 1 cent.

In addition, because it has been below $1 for 19 consecutive trading days, even if the limit is limited tomorrow, the stock will hit the trading delisting indicator because the stock price has been below $1 for 20 consecutive trading days. It is worth noting that since the end of April, the stock has fallen by 86.15% in just 9 trading days.

According to the data, the predecessor of Baoli was called Jianrui Fire, and the company successfully landed on the Growth Enterprise Market of the Shenzhen Stock Exchange in 2010. In 2016, Jianrui Fire acquired the equity of Waters at a transaction price of up to 5.2 billion yuan, a premium of 6 times its valuation, and officially entered the power battery and new energy vehicle industry. At that time, Waterma, as a leading enterprise of new energy batteries in China, was one of the earliest companies to develop and mass-produce power batteries for new energy vehicles.

After the acquisition of Waterma, Baolixin once achieved significant growth in performance with the rise of the new energy vehicle industry. In 2016, the company's net profit reached 425 million yuan, a year-on-year surge of 11.03 times, and in the first three quarters of 2017, the net profit was as high as 755 million yuan, a year-on-year increase of 8.03 times. However, the good times did not last long, since the fourth quarter of 2017, especially in 2018, Baoli Xin began to suffer continuous losses, with net profit losses of more than 3.6 billion yuan in two years.

Soon after the reorganization, Waters began to decline. On November 13, 2019, the Shenzhen Intermediate People's Court announced that Waters Battery Co., Ltd. had entered bankruptcy liquidation procedures, and Jianrui Woneng immediately confirmed the news.

In 2020, Waters was removed from the listed company system, and the company's name was changed to Baolixin. However, the name change did not bring about a turnaround in performance, and the company lost net profit for four consecutive years between 2020 and 2023. On April 29, 2024, Baolixin's shares were marked as "Delisting Risk Alert" and "Other Risk Alert", and the stock abbreviation was changed from "Baoli Xin" to "*ST Baoli".

In 2016, when ST Baoli's net profit reached an all-time high, its share price also reached an all-time high, with a market value of more than 13.5 billion yuan. However, as of the close of trading on May 14, the stock's closing price was down more than 98% from its all-time high.

The risk of Baoli's new delisting has had a huge impact on investors. Tong Tiehan, a senior financial and tax expert, pointed out that once a company is delisted, it will lead to poor stock liquidity and difficulty in liquidation, which is not conducive to follow-up financing, increases financing difficulties and capital costs, and may cause damage to corporate image and goodwill, affecting the company's sustainable development.

It is worth noting that among the many theme sectors, the ST sector has performed the most sluggishly this year. On the first trading day after the introduction of the new "National Nine Articles" in the capital market, the A-share ST sector saw a batch fall limit. According to statistics, as of May 15, the ST sector has fallen by 38.78% this year, ranking first in the Wind Popular Concept Index. 54 ST stocks have fallen by more than 50%, of which *ST Yuebo, *ST Meishang, and *ST Sansheng have all fallen by more than 80%, and the market value of the three A-shares is less than 200 million yuan.

(Source: Wind; Deadline: 2024.5.15)

Hu Yu, chief economist of Xinding Fund, said in an interview with the media that behind the fact that the ST sector is becoming less and less "welcomed" by the market, it is the new supplement and strengthening of the delisting rules by the exchange after the full implementation of the new "National Nine Articles". On the whole, as long as there is a risk of violation and business risk, it is necessary to be vigilant and avoid stepping on mines.

Baoli's new case is a wake-up call for the capital market, reminding investors to pay attention to corporate fundamentals and risk management while pursuing high returns. For Baolixin, the delisting may not be the end, but it will undoubtedly be a major setback in its development process. In the future, whether Baoli Xin can achieve a reversal through regrouping remains to be tested by the market and time.

(Finance Associated Press Zhou Ying)

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