Announcement of loss in advance after 21 trading limits * ST Xinwei faces suspension of listing

category:Finance
 Announcement of loss in advance after 21 trading limits * ST Xinwei faces suspension of listing


*St Xinwei announced that according to the companys current operating conditions, the company expects to lose performance in 2019. If the companys audited net profit attributable to the shareholders of the listed company in 2019 is still negative, or the companys audited institution still issues an audit report with no opinion or negative opinion in 2019, according to relevant regulations, the companys shares will be suspended from the date of disclosure of the companys annual report in 2019, and the Shanghai Stock Exchange will decide whether to suspend the trading within 15 trading days after the date of suspension Companys decision to list its shares.

According to the announcement recently disclosed by the company, at present * ST Xinwei has three major risks:

One is the risk of suspension of listing. According to the financial report, the company lost 1.754 billion yuan in 2017, 2.898 billion yuan in 2018 and 15.858 billion yuan in the first three quarters of 2019. At the same time, the company has been issued an audit report in 2018 that cannot express an opinion.

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, other risks. Including: the risk of major asset restructuring, and there is certain uncertainty in the follow-up work, which does 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 liability principal on the balance sheet is about 9.2 billion yuan, the companys debt repayment pressure is large; the risk of Beijing Xinwei impairment test; the actual controllers shareholding risk, the companys actual Wang Jing, the international controller, holds 29.3% of the companys shares, all of which have been pledged and frozen by multiple rounds of justice. Although there are many risks in St Xinwei, the stock price of the company is rising like a tide. Since November 8, 2019, * ST Xinwei has risen from the lowest price at the beginning of the period of 1.05 yuan / share to the current 3.72 yuan / share, up nearly 250%. Source: responsible editor of Securities Times: Yang bin_nf4368

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, other risks. Including: the risk of major asset restructuring, and there is certain uncertainty in the follow-up work, which does 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 liability principal on the balance sheet is about 9.2 billion yuan, the companys debt repayment pressure is large; the risk of Beijing Xinwei impairment test; the actual controllers shareholding risk, the companys actual Wang Jing, the international controller, holds 29.3% of the companys shares, all of which have been pledged and frozen by multiple rounds of justice.