On the evening of August 8, with only six trading days to trigger denomination delisting, ST Huaxin suddenly offered a big move to sign a restructuring intent agreement with Jiaozuo Zhongzhou Carbon Co., Ltd. (hereinafter referred to as Zhongzhou Carbon). The two sides reached cooperation intentions on helping the company out of debt crisis through coordination of Zhongzhou Carbon.
Influenced by the good news, * ST Huaxins stock price stepped out of the floor on August 9, closing at 0.78 yuan.
Importantly, if the next five trading days * ST Huaxin can continue to harvest five trading boards, after rounding, the companys share price will be able to stand on the life and death line of 1 yuan, thus temporarily get rid of the face value delisting crisis.
Stock price fluctuation * ST Huaxin face value delisting ushered in a first-line vitality
At 9:25 on August 9, * ST Huaxin was charged 0.70 yuan at the drop stop after the bidding.
If it closes at this price, * ST Huaxin will trigger denomination delisting.
Because the closing price of stocks is lower than the par value of stocks for 20 consecutive trading days (excluding trading days when stocks are suspended all day), the ownership of Shenzhen Stock Exchange decides to terminate the listing of stocks.
Since the closing price has been below the par value of the stock for 14 consecutive trading days, * ST Huaxin can just return to the safety line of 1 yuan only if the stock price rises or stops on average in the remaining six trading days.
On that day, only a glimmer of hope of * ST Huaxin stepped out of the ceiling, as of the closing price, the stock price was 0.78 yuan, a total of 84.06 million shares were traded, with a turnover value of 62.55 million yuan.
In the next five trading days, * ST Huaxins share price will have to rise and stop continuously, with the return reaching 0.82 yuan, 0.86 yuan, 0.90 yuan, 0.95 yuan and 1.00 yuan respectively, in order to get rid of the fate of delisting at the last moment.
Did the White Knight really come?
On the evening of the 8th, * ST Huaxin announced that the company and Jiaozuo Zhongzhou Carbon Co., Ltd. (hereinafter referred to as Zhongzhou Carbon) signed the Agreement of Intention for Restructuring on the same day, and the two sides reached cooperation intentions on helping the company out of debt crisis through coordination of Zhongzhou Carbon.
The announcement shows that the business scope of Zhongzhou Carbon includes the production and sale of graphite electrode, carbon block, carbon paste products, carbon electrode and calcined coke, SIC deoxidizer, non-standard graphite electrode products.
According to the intent agreement, Zhongzhou Carbon will give full play to its organizational, platform and resource advantages to enable Party A to get rid of the debt crisis and operational difficulties as soon as possible. At the same time, it is proposed to sign as soon as possible necessary restructuring documents, including but not limited to Voting Rights Entrustment Agreement, Equity Transfer Agreement, Asset Restructuring Agreement.
However, the content of the announcement also shows that the letter of intent is the initial expression of the willingness of both parties to the agreement on the restructuring of the company, and there are certain uncertainties in the implementation and implementation of the specific cooperation plan.
* ST Huaxin said that the intention agreement signed by the two parties to the agreement on the initial willingness to restructure the company, if the specific restructuring plan can be implemented and completed, it can promote the resolution of the companys debt crisis, ease the pressure of the companys operation, and have a positive impact on the companys sustainable operation. This matter is of great uncertainty. We invite investors to make prudent decisions and pay attention to investment risks.
Shenzhen Stock Exchange is issuing letters of concern
Shortly after the announcement of the intent agreement, the Shenzhen Stock Exchanges letter of concern followed.
Shenzhen Jiaotong pointed out that the company is now being investigated by the SFC for suspected false records in its annual report of 2017. According to the regulations, during this period, listed companies are not allowed to issue shares to purchase assets and major shareholders are not allowed to reduce their holdings. Please explain the feasibility and compliance of signing restructuring documents and whether Zhongzhou Carbon is aware of potential obstacles to cooperation. u3002 The Shenzhen Stock Exchange questioned whether the voting rights entrusted in the announcement constituted a transfer of shares in essence, and whether control rights and operational stability would be affected.
At the same time, Shenzhen Jiaotong pointed out that the main business of Zhongzhou Carbon is quite different from that of the company. It requires analysis of the business synergy of the company and disclosure of a brief account of Zhongzhou Carbon to demonstrate its strength and advantages in helping the company out of difficulties.
The Shenzhen Stock Exchange also noted that * ST Huaxin issued the cooperation with Zhongzhou Carbon at the critical time when the stock price was below 1 yuan for 14 consecutive trading days. It asked the company to explain whether there was any situation of using Xinpiao to influence stock trading and boost the stock price in the light of the feasibility and compliance of the cooperation.
Controlling shareholders have been listed in the top 500 of the world_
Wind statistics show that as of the end of the first quarter of this year, the number of shareholders of * ST Huaxin still exceeds 81,000.
Among the top ten shareholders, Shanghai Huaxin International Group Co., Ltd. is the controlling shareholder. As of the end of the first quarter, the proportion of shareholders is as high as 59.78%. Data show that Shanghai Huaxin belongs to China Huaxin Energy Co., Ltd. Founded by Ye Jian-ming in 2002, China Huaxin is mainly engaged in energy and finance. From 2014 to 2017, China Huaxin ranked among the top 500 companies in the world for four consecutive years. In 2017, China Huaxin ranked 222 on the list with operating income of 43.7 billion US dollars.
What other stocks are facing the dilemma of denomination delisting?
As of Aug. 9, in addition to * ST Huaxin, there are two A-share shares with the latest closing price less than 1 yuan, namely * ST control and * ST Huaye. Among them, * ST has closed below 1 yuan for 6 consecutive trading days and * ST China has closed below 1 yuan for 11 consecutive trading days.
In addition, there are a number of shares below 2 yuan. Wind statistics show that 59 stocks in the trading state are higher than 1 yuan and lower than 2 yuan.
Source: Responsible Editor of Securities Times: Yang Bin_NF4368