Financial Services Association, May 15. As a former star company in the new energy sector, Baoli's new delisting is now a foregone conclusion. Due to poor performance, Baolixin was previously wearing a star hat at the end of April. After many days of panic selling, as of today's close, Baolixin's current stock price was only 0.09 yuan. This is the first individual stock with a stock price of less than 1 dime in A-share history.

Furthermore, since it falls below 1 yuan for 19 consecutive trading days, even if it rises or stops tomorrow, the stock will hit the trading delisting index because the stock price falls below 1 yuan for 20 consecutive trading days. Notably, the stock has dropped 86.15% in just 9 trading days since Baoli put on its cap at the end of April.

According to data, Baoli's new name was Kenrui Fire, and the company successfully landed on the GEM board of the Shenzhen Stock Exchange in 2010. In 2016, Kenrui Fire purchased Watermar's shares at a transaction price of up to 5.2 billion yuan, or a premium of 6 times its valuation, and officially entered the power battery and new energy vehicle industry. At the time, as a leading domestic NEV battery company, Watermar was one of the first companies to develop and mass-produce NEV power batteries.

After the acquisition of Watermar, Baolixin once achieved significant growth in performance thanks to the rise of the NEV industry. In 2016, the company's net profit reached 425 million yuan, a year-on-year surge of 11.03 times; in the first three quarters of 2017, net profit reached 755 million yuan, an increase of 8.03 times over the previous year. However, the good times did not last long. Since the fourth quarter of 2017, especially in 2018, Baolixin began to experience continuous losses, with net profit losses exceeding 3.6 billion yuan within two years.

Soon after the restructuring, Watermar began to decline. On November 13, 2019, the Shenzhen Intermediate People's Court announced that Watermar Battery Co., Ltd. had entered bankruptcy and liquidation proceedings, and Kenrui Woneng immediately confirmed the news.

By 2020, Watermar was removed from the listed company system, and the company name was changed to Baoli Xin. However, the name change did not lead to a turnaround in performance, and the company lost net profit for four consecutive years between 2020 and 2023. On April 29, 2024, Baoli's new shares were labeled “Delisting Risk Warning” and “Other Risk Warning”, and the stock abbreviation was changed from “Baoli New” to “*ST Baoli”.

In 2016, when *ST Baoli's net profit reached a record high, its stock price also reached an all-time high, with a market value of over 13.5 billion yuan. However, by the close of trading on May 14, the stock's closing price had fallen by more than 98% from its all-time high.

Baoli's new delisting risk has had a huge impact on investors. Senior finance and taxation expert Lu Tiehan pointed out that once an enterprise is delisted, it will lead to poor stock liquidity and difficulty in monetizing, which is not conducive to subsequent financing, increasing the difficulty of financing and capital costs. At the same time, it may damage the corporate image and goodwill, and affect the company's continued development.

It is worth noting that among the many subject sectors, the ST sector has had the sluggest performance since this year. On the first trading day after the introduction of the new “National Nine Rules” in the capital market, the A-share ST sector fell to a standstill in batches. According to statistics, as of May 15, the ST sector had a cumulative decline of 38.78% during the year, leading the decline in the Wind Hot Concept Index. The cumulative decline of 54 ST shares was more than 50%. Among them, *ST Yuebo, *ST Meishang, and *ST Sansheng all fell by more than 80%, and the market value of all three A-shares was less than 200 million yuan.

Hu Yu, chief economist of Xinding Fund, said in an interview with the media that the ST sector is less and less likely to be “seen” by the market; it is the exchange's new addition and strengthening of delisting rules after the full implementation of the new “Nine Rules of the State”. Overall, any company that has the risk of irregularities and operating risks needs to be vigilant to avoid stepping on lightning.

Baoli's new case sounded a wake-up call for the capital market, reminding investors to pay attention to corporate fundamentals and risk management while pursuing high returns. Delisting may not be the end for Baolixin, but it will undoubtedly be a major setback in its development process. In the future, whether Baolixin can restructure its momentum and achieve a reversal is yet to be tested by the market and time.