19 trading limits in 20 days * ST Xinwei Risk Reminder

category:Finance
 19 trading limits in 20 days * ST Xinwei Risk Reminder


Due to its own problems, * ST Xinwei fell and stopped for 43 consecutive trading days after resumption of trading in July 2019, with a decline of more than 90% before the consecutive rally. After this surge, * ST Xinweis total market value reached 9.8 billion yuan, but it lost nearly 16 billion yuan in the first three quarters of 2019, and its net assets at the end of September 2019 were negative. Is the fundamentals of St Xinwei, a problem stock, improving? No, it still has many risks.

*According to the evening announcement of St Xinwei on January 4, the company has three major risks.

One is the risk of being suspended. *St Xinwei has been warned of delisting risk, with a loss of 15.858 billion yuan in the first three quarters of 2019. Related matters may cause the companys net profit in 2019 to be negative, and the company may be audited in 2019 to issue an audit report with no or no opinions. According to the Listing Rules of Shanghai Stock Exchange, the companys shares may be suspended from listing.

Second, the risk of participating in the establishment of funds. *The 5g fund initiated and established by St Xinwei has not yet obtained the approval of the relevant departments for foreign investment, the written consent of the companys creditors and the consent of the original shareholders of the overseas operators, and the relevant procedures for major asset restructuring that need to be performed have not yet been completed. There is significant uncertainty about the successful implementation of the companys participation in the initiation and establishment of the fund.

Third, there are other risks, including: the risk of major asset restructuring, and there are certain uncertainties in the follow-up work, which do not exclude the possibility of termination or change; the risk of debt default, the current overseas project guarantee risk exposure amount is about 1.7 billion yuan, the total amount of interest bearing debt principal on the balance sheet is about 9.2 billion yuan, the companys debt service pressure is large; the risk of Beijing Xinwei impairment test; the actual controllers holding Wang Jing, the actual controller of the company, holds 29.3% of the companys shares, all of which have been pledged and froze by several rounds of justice.

Setting up 5g fund to ignite speculation

The 5g fund that * ST Xinwei wants to participate in is the cause of the stock price explosion in this market. *After St Xinwei announced the event on the evening of November 7, 2019, the stock price rose and stopped the next day, which opened the road of this round of sharp rise.

Securities Times u00b7 e company has previously reported that this is a strange announcement, which may only be a digital game. 2.6 billion US dollars has been invested in 5g projects of six countries overseas, with a fund scale of 7.5 billion US dollars. This word teases the nerves of market speculation. It comes from St Xinwei, who has a lot of problems, and cant help but make a big question mark. At that time, the Shanghai stock exchange sent a letter overnight, asking questions in combination with core issues such as the source of investment funds and the feasibility of the plan. Subsequently, Shanghai Stock Exchange issued two more regulatory work letters, requiring * ST Xinwei to implement regulatory requirements, prudently assess the feasibility of relevant matters, and timely disclose the progress and relevant risks.

*St Xinwei has previously issued a risk warning to emphasize that there is uncertainty about whether the foreign investment constitutes a major asset restructuring; the capital source of the investment is mainly the debts returned by the operator and the performance bond of the bank, and there is uncertainty about the relevant capital source; 5g fund is currently in the preparatory stage, and its establishment needs to be reviewed, approved and filed by the relevant departments of foreign investment, There is a certain risk of uncertainty.

*St Xinwei said that the companys investment in 5g fund needs to communicate with the companys creditors, and there is a risk of uncertainty that the company cannot complete the investment in 5g fund due to the failure to obtain the creditors consent in time; whereas the investment of 5g fund in overseas operators will dilute the original shareholders equity to varying degrees, and there is a risk that the company cannot complete the investment due to the failure to obtain the consent of the original shareholders of overseas operators in time At present, 5g fund is in the preparatory stage, and there is a risk that it can not successfully raise enough funds. In fact, its not just * ST Xinwei: at the end of the year and the beginning of the year, the risk warning (* ST, st) plate was once again hyped, ushering in the cap picking market. Since November 14, 2019, the st sector index of tonghuashun has risen by 20%, among which many stocks have soared, St Baite and * ST Mengshi have doubled, and * ST Pengqi, * ST Gaosheng and * ST Renzhi have increased by more than 80%. Source: responsible editor of Securities Times: Zhang Meiyu nf2100

*St Xinwei said that the companys investment in 5g fund needs to communicate with the companys creditors, and there is a risk of uncertainty that the company cannot complete the investment in 5g fund due to the failure to obtain the creditors consent in time; whereas the investment of 5g fund in overseas operators will dilute the original shareholders equity to varying degrees, and there is a risk that the company cannot complete the investment due to the failure to obtain the consent of the original shareholders of overseas operators in time At present, 5g fund is in the preparatory stage, and there is a risk that it can not successfully raise enough funds.

In fact, its not just * ST Xinwei: at the end of the year and the beginning of the year, the risk warning (* ST, st) plate was once again hyped, ushering in the cap picking market. Since November 14, 2019, the st sector index of tonghuashun has risen by 20%, among which many stocks have soared, St Baite and * ST Mengshi have doubled, and * ST Pengqi, * ST Gaosheng and * ST Renzhi have increased by more than 80%.