Countdown to suspension of listing of non standard * ST wealth control for three consecutive years

category:Finance
 Countdown to suspension of listing of non standard * ST wealth control for three consecutive years


Supervision joint force order

*St wealth control correction

For the absurdity of the companys annual report in 2019, the accountant firmly said no, issued a negative audit report and made it clear that the company violated the accounting standards. The Shanghai stock exchange immediately issued a regulatory working letter, requiring the company to make corrections, and publicly denounced and publicly identified some of the main responsible personnel for information disclosure violations. On November 13, the Shanghai Securities Regulatory Bureau issued administrative supervision measures, ordering the company to correct. After correction, the net assets will be negative. After the correction, the company touched the situation of suspension of listing and avoided planned bankruptcy of delisting.

Below par

Before the suspension, * ST wealth control had been below par value for 13 consecutive trading days and was the lowest A-share company in Shanghai. It can be said that * ST wealth control corrected the 2019 annual report in accordance with the requirements of the regulatory authorities and accepted the result of suspension of listing, which is also the result of market reverse force.

There has been a precedent that companies have been forced to suspend their listing by suspending their listing on the edge of face value delisting. *St Peng has been suspended from listing because its share price has fallen to 0.74 yuan / share, and issued non-standard audit opinions. At present, * ST Peng is still suspended, and the operation has not improved, even the problem of subsidiaries out of control has occurred. There is a great uncertainty whether to resume listing in the future.

Since this year, five companies on the Shanghai Stock Exchange have delisted due to the delisting, including Huaye, Ruidian, Dahua, Meidu and Yinge. The reform of registration system has had a significant impact on the market ecology. The CSRC and the exchange have adhered to classified supervision and strictly cracked down on avoiding delisting, and achieved remarkable results.

*St fukong

Future or termination of listing

At present, * ST wealth controller and actual controller have been filed for investigation by the CSRC.

The audit report of 2019 issued by the accountant can not express opinions, involving many matters, including major errors and management responsibility, going concern ability, other expected liability write back, withdrawal of bad debt provision by bond transfer, audit restriction of important subsidiaries such as macro investment network, authenticity of relevant agreements on transfer of Jagex, large amount of consulting fee, off balance sheet guarantee and betaine equity investment Over distribution of dividends and so on. The board of directors of the company has responded to this, but any one of the issues is very complicated, and there is significant uncertainty whether it can be completely solved in the future.

According to the rules, the resumption of the listing of shares needs to meet a number of conditions, the accountant issues an unqualified audit report, and also requires the sponsor to issue special opinions. From the current situation of the company, there are big doubts about the future resumption of listing, which investors need to have expectations. *In the final analysis, St wealth control has come to this stage because of the companys major defects. It has been reduced to a shell company without a strong main business. Violations and lawsuits are entangled. The behavior of the management to avoid delisting is also strictly supervised by all parties.