Recently, in the A-share market, 9 ST companies received a decision from the local securities regulatory bureau ordering corrective measures, requiring the company to clear the funds occupied by the relevant parties for non-operating purposes within six months, and if the rectification is not completed within the time limit, the stock will be terminated from listing.
According to the relevant rules of the Shanghai and Shenzhen Stock Exchanges, if the balance of funds occupied by the controlling shareholder or the controlling shareholder's affiliates reaches more than 200 million yuan or accounts for more than 30% of the absolute value of the company's latest audited net assets, and is ordered by the CSRC to make corrections but does not complete the rectification within 6 months, the exchange will suspend the company's shares, and if the rectification is not completed within two months after the suspension, the company's stock trading will be subject to a delisting risk warning, and if the rectification is not completed within two months, the stock will be terminated from listing and trading.
Source: Photo.com
The balance of funds occupied by the two companies exceeds 2.8 billion yuan, and the shares of the controlling shareholders are highly pledged
Among the nine ST companies, the non-operating capital balances of listed companies such as ST Changkang (002435.SZ) and ST Red Sun (000525.SZ) controlling shareholders reached 3.4 billion yuan and 2.8 billion yuan respectively.
Among them, the decision on corrective measures received by ST Changkang shows that the company's controlling shareholder, Changjiang Runfa Group Co., Ltd. (hereinafter referred to as Runfa Group) and its affiliates, had non-operational occupation of the company's funds in the early stage. As of May 6, 2024, the balance of funds occupied was 3.485 billion yuan, accounting for 93.44% of the company's net assets at the end of 2023. In addition, as of the disclosure date of the announcement on May 11, 2024, the balance of ST Changkang's subsidiary guarantee for the controlling shareholder was 500 million yuan.
In addition, the number of shares pledged by Runfa Group, the controlling shareholder of ST Changkang, and its persons acting in concert accounted for more than 80% of the company's shares held by it. Due to suspected violations of information disclosure laws and regulations, the China Securities Regulatory Commission has opened an investigation against ST Changkang and Runfa Group.
In view of the occupation of non-operating funds and illegal guarantees, the company was also issued an internal control audit report with a negative opinion in 2023, and ST Changkang shares have been subject to the special treatment of "other risk warnings" since May 6, 2024.
As of May 7, 2024, the company's controlling shareholder Nanjing First Pesticide Group Co., Ltd. (hereinafter referred to as Nanyinong Group) and its affiliates occupied the company's fund balance of 2.884 billion yuan, accounting for 328.17% of the company's latest audited net assets.
ST Red Sun announced that Nanyinong Group and its actual controller Yang Shouhai currently have the risk of a high proportion of pledges, judicial freezes, and waiting for freezing.
A number of companies have occupied more funds than their net assets, and the company has been put on delisting risk warning
In addition to the above-mentioned companies, the balance of non-operating funds occupied by some companies has reached more than 680% of the absolute value of the company's latest audited net assets.
*ST Shentian (000023.SZ) disclosed that as of the disclosure date of the 2023 annual report, the company's actual controller and its affiliates occupied the balance of listed companies' funds of 137 million yuan for non-operational purposes, accounting for 685% of the company's latest audited net assets.
*ST Shentian's net assets attributable to shareholders of listed companies in 2023 are negative (-19.5036 million yuan) and the auditor has issued an audit report on the company's 2023 financial report that cannot express an opinion, and the company's shares will be subject to delisting risk warning from the market open on May 6, 2024, and the stock abbreviation will be changed from "ST Shentian" to "*ST Shentian".
In addition, *ST Information and Communications (600289.SH) disclosed that the controlling shareholder Yiyang Group Co., Ltd. (hereinafter referred to as Yiyang Group) occupied the company's funds for non-operational purposes. As of the disclosure date of the 2023 annual report, Yiyang Group has occupied a balance of 534 million yuan, accounting for 126.01% of the company's latest audited net assets.
*According to the announcement of ST Information and Communication, Yiyang Group and its concerted actors hold a total of 38.16% of the company's total share capital, of which the cumulative pledge of the company's shares accounts for 92.63% of the company's total shares and 35.35% of the company's total share capital; The shares of the company that are frozen or waiting to be frozen account for 86.19% of the total shares of the company and 32.89% of the company's total share capital.
*ST Information and Communications said that because the controlling shareholder's equity repurchase commitment has not been fully fulfilled and the controlling shareholder's non-operating capital occupation has not been fully recovered, and the recoverability of the capital occupation cannot be judged, the company's 2023 annual report was issued by an accounting firm and the company's shares have been put on delisting risk warning. If the circumstances involved in the aforesaid inability to express an opinion cannot be eliminated in 2024, the company's shares will be at risk of termination of listing.
A number of companies have given measures to clear and occupy funds, and the controlling shareholders of some companies have gone bankrupt
Among them, a number of companies have given measures to clear and occupy funds in the announcement of the CSRC's decision to order corrections.
*ST Zhongli (002309.SZ) disclosed that from 2018 to 2023, the company's controlling shareholder and actual controller occupied the company's funds for non-operational purposes, and as of December 31, 2023, the balance of the company's funds was 1.805 billion yuan. Among them, the balance of non-operating funds occupied by prepayment of supplier payments was 1.693 billion yuan, and the non-operating funds were occupied by 112 million yuan due to illegal guarantees. *ST Zhongli is already in the pre-reorganization stage, and has completed the first stage of the pre-reorganization procedure, such as asset verification and capital verification, ascertaining the reorganization value, and demonstration of the reorganization plan. The company hopes to introduce reorganization investors with the help of judicial procedures, completely solve the relevant problems existing in the company, and return to a state of benign development.
ST Sansheng (002742.SZ) disclosed that as of the disclosure date of the 2023 annual report, the balance of the company's funds (including interest) occupied by the controlling shareholder, actual controller and its affiliates for non-operating purposes was 113 million yuan, accounting for 32.79% of the company's latest audited net assets. In addition, the company's illegal guarantee balance was 13.6736 million yuan. At present, the reorganization of ST Sansheng is also advancing, and the company intends to use the resources of stakeholders to prioritize the resolution of non-compliance.
ST Huatie (000976.SZ) disclosed that as of December 31, 2022, the company's controlling shareholders and other related parties still had a balance of non-operating funds (including the total principal and interest) of 1.338 billion yuan. As of April 29, 2024, the controlling shareholder and other related parties have only returned 109.5494 million yuan of occupied funds in cash.
ST Huatie said that the company signed the "Equity Pledge Contract" with Guangxi Zhaoying Venture Capital Co., Ltd. (hereinafter referred to as Guangxi Zhaoying), which is controlled by the company's actual controller, and Guangxi Zhaoying pledged its 45% equity in Qingdao Zhaoying Rail Transit Equipment Co., Ltd. to the listed company to provide pledge guarantee for the controlling shareholder and other related parties to repay the occupied funds, and the relevant pledge registration procedures have been completed. In the future, if the controlling shareholder and other related parties fail to fulfill their repayment obligations, the company has the right to dispose of the corresponding pledge.
ST Haoyuan (002700.SZ) disclosed that the company and its subsidiary, Xinjiang Qiuzi Haoyuan Natural Gas Pipeline Transmission and Distribution Co., Ltd., provided a total of 537 million yuan of non-operating funds to related parties controlled by the controlling shareholder and other affiliated legal persons without decision-making approval or authorization procedures. As of the disclosure date of the 2023 annual report, the controlling shareholders and related parties have occupied the company's fund balance of 513 million yuan, accounting for 65.59% of the latest audited net assets.
ST Haoyuan disclosed that the controlling shareholder intends to dispose of the construction projects and land use rights under its name to repay the arrears. In the next step, the company will verify the ownership of the relevant assets, take necessary preservation measures for the relevant assets if conditions are met, and promote the relevant assessment and disposal procedures.
In addition, ST Modern (002656.SZ) disclosed that from December 2018 to August 2019, the company provided a total of about 247 million yuan of non-operating funds to the controlling shareholder without decision-making approval or authorization procedures. As of the disclosure date of the 2023 annual report, the controlling shareholder has occupied the company's fund balance of 242 million yuan. According to ST Modern's announcement, on July 12, 2023, the company learned through the National Enterprise Bankruptcy and Reorganization Case Information Network that the Guangzhou Intermediate People's Court has declared the company's controlling shareholder, Guangzhou Ruifeng Group Co., Ltd., bankrupt.
We will continue to pay attention to whether these ST companies can complete the repayment of the receivables within the regulatory deadline.