The market value fell below the "warning line" of 300 million yuan, and the delisting crisis of these companies is getting closer and closer

CBN

2024-06-05 21:22Posted on the official account of Shanghai Yicai

After the implementation of the "new delisting rules", the first A-share listed company to touch the red line of "market value delisting" will soon appear.

On June 5, *ST Shentian (000023.SZ) fell again with a one-word limit, with the latest closing price of 2 yuan and the corresponding market value of 277.5 million yuan.

The company announced the day before that as of the close of the day, the company's market value had been less than 300 million yuan; If the closing market value is less than 300 million yuan for 20 consecutive trading days, there will be a risk of being terminated from listing.

And *ST Shentian is not alone. Recently, due to the continuous decline in stock prices, the market value of a number of A-share listed companies has fallen below the "warning line" of 300 million yuan, sounding the alarm of delisting. Most of these stocks facing the crisis of market value delisting are ST shares and small and micro cap stocks, and most of them have suffered long-term performance failures and regulatory penalties.

36 companies have a market value of less than 500 million yuan

Recently, due to the continuous decline in the ST sector and the small and micro cap sector, the market value of many listed companies has shrunk significantly.

According to the statistics of Choice, as of the close of trading on the 5th, there are five companies with a market value of less than 300 million yuan.

Among them, *ST Meishang's current market value is only 87 million yuan, and *ST Yuebo and *ST Sansheng have a market value of less than 200 million yuan.

On April 30 this year, the Shanghai and Shenzhen Stock Exchanges officially issued the revised "Stock Listing Rules", and the market value delisting standard of A-shares (including A+B shares) on the main board will be increased from 300 million yuan to 500 million yuan from October 30 this year, and the delisting standard of B-shares, ChiNext and Science and Technology Innovation Board will remain unchanged at 300 million yuan; During the "transition period" from April 30 to October 30, the main board market value delisting standard is still 300 million yuan.

In addition, there are more listed companies with a market value of less than 500 million yuan, standing on the edge of the "cliff".

Choice data shows that as of the close of trading on the 5th, a total of 36 companies had a market value of less than 500 million yuan. In addition to the above five stocks with a market value of less than 500 million yuan, the market value of 31 listed companies such as ST Baan and Henghe shares is between 300 million yuan ~ 500 million yuan. Industry insiders believe that if the stock price of the above-mentioned companies does not improve during the transition period, they may directly face the risk of delisting after October 30.

Most of the above-mentioned companies facing the risk of market value delisting are ST shares or small and micro cap stocks, which have just experienced a round of decline and their market value has shrunk seriously.

Taking *ST Shentian as an example, the stock has been falling all the way since the end of January, and has fallen by more than 67% since January 29. In April 2016, the stock once reached a high of 40 yuan per share, with a market value of more than 5 billion yuan. Compared with that time, the current market value of *ST Shentian has shrunk by about 94%.

Similar to *ST Shentian, among the 36 stocks with a market value of less than 500 million yuan, 28 stocks fell to varying degrees during the year. As of the close of trading on June 4, ST Lingda and *ST Yuebo were among the top decliners, down 18.12% and 9.3% respectively.

Some stocks that have entered the delisting period have also seen a fierce decline in stock prices, and their market value is shrinking further. For example, the delisted carbon yuan opened down 50% today, fell further intraday, fell 87.37% at one point, and closed down 83.33%. The market value directly shrank to less than 100 million yuan.

Performance losses and frequent regulatory red lines

Investors voted with their feet, and the face value shrank to the warning line..... Most of the above-mentioned companies' delisting crises have already been "foreshadowed" due to years of performance failures, and have frequently encountered regulatory attention recently.

Some of the low-capitalization companies mentioned above have even been losing money for many years. According to choice statistics, among the stocks with a market value of less than 500 million yuan, more than sixty percent of the net profit last year was in the red.

Taking *ST Meishang as an example, in the first quarter of this year, the company's revenue was only 784,800 yuan, a year-on-year decrease of 95.47%; The net profit was -170 million yuan. In 2021~2023, the company will have a cumulative loss of more than 2.2 billion yuan.

Similarly, *ST New Spinning. According to the financial report, in 2021~2023, the company's net profit (adjusted) will be -392 million yuan, -660 million yuan, and -296 million yuan respectively, with a cumulative loss of more than 1.3 billion yuan. *ST Shentian has also been in a state of loss for 4 consecutive years, from 2020 to 2023, the losses will be 7.9543 million yuan, 53.0343 million yuan, 271 million yuan, and 160 million yuan respectively.

In addition to performance losses, many companies also have bad records, financial fraud, annual reports are issued non-standard opinions and other violations frequently.

The most typical ones are *ST Meishang and *ST New Textiles. The reporter combed and found that from 2012 to 2019 and the first half of 2020, *ST Meishang inflated its net profit for eight and a half consecutive years, and the inflated net profit was as high as 457 million yuan. In March this year, the company was administratively punished by the China Securities Regulatory Commission for financial fraud.

Coincidentally, *ST New Textile also received the "Prior Notice of Administrative Punishment" issued by the regulator at the end of April. From 2016 to 2022, *ST New Textile was suspected of inflating and reducing operating income, resulting in false records in annual reports for seven consecutive years.

Among the above-mentioned companies, it is also common for annual reports to be issued with non-standard opinions. According to choice data, among the above 36 companies with a market value of less than 500 million yuan, 16 companies' annual reports were issued by audit institutions with "non-standard" opinions, accounting for about 44%. (Including unqualified opinions that cannot be expressed, unqualified opinions with emphasis, and reserved opinions)

For example, *ST Shentian's 2023 financial report was issued an audit opinion by the audit agency Pengsheng Certified Public Accountants that could not express an opinion. As of December 31, 2023, *ST Shentian's net assets were -19.5036 million yuan, 144 pending litigation/arbitration cases involving an amount of 243.1701 million yuan have been found, and the bank accounts of the company and its subsidiaries have been judicially seized and frozen.

Under the pressure of delisting, some listed companies also intend to "save themselves" by increasing their holdings, repurchasing and other means, but the effect on boosting market value is not obvious. Jianche B announced on May 26 that the controlling shareholder and persons acting in concert plan to increase their holdings of the company's shares within 6 months, with a total amount of not less than 1.5 million yuan and no more than 3 million yuan). In the 12 trading days from May 17th ~ June 5th, its closing market value was always less than 300 million yuan.

(This article is from Yicai)