In fact, * ST wealth control is also facing the face value delisting.
By the end of November 24, * ST wealth holdings closed at 0.82 yuan per share, with a total market value of only 449 million yuan. The closing price of the shares was lower than the par value of the shares for 13 consecutive trading days, facing the huge pressure of face value delisting. Based on the current stock price, * ST wealth control needs to rise 22% within 7 trading days after the resumption of trading in the future to avoid delisting.
The latest share price of * ST rich control has fallen 98% from its market value compared with its historical high in 2015. As of the end of the third quarter of this year, * ST rich control still has 32528 shareholders.
Suspension of trading from now on
On the evening of November 24, * ST wealth control issued several announcements.
The trading of the companys shares will be suspended from the disclosure date of the 2019 annual report (Revised Version) (i.e. November 25, 2020). The Shanghai Stock Exchange will decide whether to suspend the listing of the companys shares within 15 trading days after the suspension.
At the same time, * ST wealth control released the revised annual report and audit report in 2019, which clearly defined that the net profit attributable to the owners of the company was RMB 1.253 billion, and the net assets attributable to shareholders of the listed company was -2.309 billion yuan. According to the historical financial data, the audited net assets of * ST fukong in 2018 were -3.538 billion yuan.
*St wealth control also released the revised semi annual report for 2020. From January to June 2020, the company realized operating revenue of 237 million yuan, and realized net profit of - 1.974 billion yuan belonging to shareholders of listed companies; among them, the net profit after deducting non recurring profit and loss attributable to shareholders of listed company was - 193 million yuan.
In contrast, the semi annual report previously released shows that from January to June 2020, the company realized operating revenue of 2.366 billion yuan, and the net profit attributable to shareholders of listed companies was - 158 million yuan; among them, the net profit attributable to shareholders of listed companies after deducting non recurring profit and loss was 3.659 billion yuan.
At the same time, there was also a regulatory working letter issued by the Shanghai Stock Exchange on matters related to the suspension of listing of * ST rich holding shares.
According to the public data, the main business of * ST fukong is the R & D and operation of online game products, mainly including the development of interactive leisure and entertainment game software and the operation of game products. It was formerly known as Shanghai Zhongji Investment Holding Co., Ltd. and the actual controller was Yan Jinggang, the head of China Technology Department.
*St fukong was listed on the Shanghai Stock Exchange in 1993. It was once called seabird electronics, seabird development and St Chenghai. From 2008 to 2010, St Chenghai, the predecessor of * ST wealth control, was suspended from listing for three consecutive years due to losses.
At the end of 2013, Yan Jinggang, the leader of the China Technology Department, became the controlling shareholder of the listed company through the backdoor of St Chenghai, which was later renamed as Zhongji holding, and then renamed as fukong interactive. Through continuous mergers and acquisitions, Yan Jinggang transformed the companys main business into game development and application.
As the net assets at the end of 2018 are negative, the companys shares have been subject to special treatment of delisting risk warning on April 27, 2019.
Transfer - 3.6 billion yuan of net assets into normal
Before the issuance of the revised 2019 annual report data and announcement, the regulatory profit margin of * ST wealth control had been identified by the regulatory authorities, and the listing was suspended in advance.
Therefore, the Shanghai Stock Exchange decided to publicly denounce * ST fukong, publicly denounce the then chairman and general manager, and publicly recognized the life-long top punishment. According to the scope of responsibilities and performance of the then directors, supervisors and senior executives, the Shanghai Stock Exchange decided to publicly recognize, publicly denounce and circulate criticism to the other 10 responsible persons.
According to the disposal decision, the important financial data such as net assets and net profit in 2019 in the announcement of * ST wealth controls performance forecast and annual operating performance are inconsistent.
As early as January 23 this year, * ST wealth control disclosed the announcement of annual performance loss in 2019, and expected to realize the net profit attributable to shareholders of listed companies of - 868 million yuan in 2019, a decrease of 84.24% year-on-year.
On April 30, * ST wealth control disclosed its main business performance in 2019. At the end of 2019, the net assets attributable to the shareholders of the listed company was - 3.674 billion yuan, and the net profit attributable to the shareholders of the listed company was - 141 million yuan.
However, according to the 2019 annual report of * ST wealth control officially released on August 24, 2019, the net profit attributable to shareholders of listed companies was RMB 4.313 billion, and the net assets attributable to shareholders of listed companies was RMB 751 million. The performance correction was mainly caused by the write back of estimated liabilities and accrued interest.
From - 3.674 billion yuan to 751 million yuan, the net assets of * ST fukong increased by 4.425 billion yuan. In 2018, the net profit loss attributable to shareholders of the listed company was RMB 5.509 billion and the net asset was RMB - 3.539 billion.
This means that net assets of the company will be regulated for the year of 2019.
On the evening of August 24, at the same time as the 2019 annual report, there was also a regulatory working letter issued by the Shanghai Stock Exchange on matters related to the violation of accounting standards in the 2019 annual report of * ST wealth control.
According to the regulatory working letter of the Shanghai Stock Exchange, if * ST wealth control is suspected of violating the accounting standards and disclosing false financial information in the 2019 annual report, it will be submitted to the competent department for investigation and handling. If the authorities require * ST rich holding to correct within the prescribed time limit, but the company fails to correct, it will touch the relevant provisions of article 14.1.1 of the stock listing rules, and the listing of the shares will be suspended.
*St wealth control faces face value delisting
There are only seven days left for self-help, and four trading limits are needed
While the stock continues to be suspended from trading, the listing of * ST wealth control is also facing delisting risk.
On the evening of November 24, * ST wealth control issued the fourth risk warning announcement on the possible delisting of the companys shares. By the end of November 24, the closing prices of * ST wealth control had been lower than the par value of the shares for 13 consecutive trading days (from November 6 to November 24, 2020), i.e. 1 yuan, facing the huge pressure of face value delisting.
Based on the current stock price, * ST wealth control needs to rise 22% in the next seven trading days to avoid delisting, which means that there are about four trading limits in these seven days. In terms of the current situation of the company, the difficulty can be imagined.
If the daily closing price of the companys shares is lower than the par value of the shares for 20 consecutive trading days (excluding the suspension day), the Shanghai Stock Exchange has the right to terminate the listing of the companys shares.
According to the relevant provisions, in case of the above-mentioned circumstances, the trading of the companys shares and their derivatives shall be suspended from the next trading day, and the Shanghai Stock Exchange shall make a decision on whether to terminate the listing of the companys shares within 15 trading days after the starting date of the suspension.
*Cash on account of St fukong is 1.74 million yuan
Billions in debt
At present, the funds and liabilities of * ST wealth control are not optimistic.
At that time, the total assets of ZTE holdings was 6.539 billion yuan, and the net assets of parent company were 2.24 billion yuan. However, this fixed increase ended in failure.
In 2016, through the acquisition of game assets, the main business of China Tech Holdings shifted from precast concrete pile business to game R & D and operation. In March 2017, the name of the company was changed from Zhongji holding to fukong interactive.
In 2016 and 2017, the non net profit of wealth control interaction was rmb-34 million and rmb-26 million respectively. In 2018, * ST wealth control said that due to the related matters of contingent loans and guarantees for China Technology piling industry and its subsidiaries, it made an estimated liability of RMB 3.669 billion according to the principle of prudence. It was in this year that the companys net profit loss soared to 5.509 billion yuan, and the net assets at the end of the period also turned negative.
According to the financial report, by the end of the third quarter of this year, the monetary fund of * ST fukong was only 1.74 million yuan, while the total liabilities was 1.892 billion yuan.
As the actual controller of * ST wealth control, Yan Jing, the head of China Technology Department, has been banned from the securities market for life by the CSRC. On the evening of October 21, Hongda mining, another listed company under the China Science and Technology Department, issued an announcement, saying that the companys suspected illegal information disclosure case had been investigated according to the notice on administrative punishment and market ban received by the CSRC on the same day.
The CSRC pointed out that Yan Jinggang, as the actual controller, organized, planned, led and implemented all illegal matters of Hongda mining.
The CSRC plans to order Hongda mining to make corrections, give a warning and impose a fine of 600000 yuan; give a warning to Yan Jinggang and impose a fine of 600000 yuan; and impose a lifelong ban on its securities market.
However, Yan Jinggang is still the actual controller of the company. Tianyan data show that it holds about 20% of the companys equity.
Share prices have plummeted 98 percent
During 2015, with the hype of online games and the Internet, the companys share price reached a historical high of 38.84 yuan on June 5 of that year, with the highest market value of more than 20 billion yuan. Now, it is less than 500 million yuan. The latest stock price and market value have retreated by 97.89% compared with the historical high.
Wind data shows that as of the end of the third quarter of this year, * ST wealth control still has 32528 shareholders.
Since 2019, A-share delisted shares have continued to expand. Statistics show that since 2020, a total of 16 listed companies have been forced to delist, and another 13 companies have been delisted through M & A channels, with a total of 29 delisted companies in the year.
At the same time, there are many stocks facing delisting risk.
Source: China Fund News Editor in charge: Yang Bin_ NF4368