Both ST Tongda, ST Yuancheng Gold, and ST Tanyuan Technology have been delisted for two consecutive years due to financial non-compliance. The cumulative decline reached 90%! Three stocks have officially entered the delisting period today. Please note that two stocks will enter the delisting period tomorrow.
On June 5th, Cailian Press (editor Shen Chao) reported that the delistings ST Tongda, ST Yuancheng, and ST Tanyuan have officially entered the delisting consolidation period, and their stock prices have also experienced severe fluctuations. In early trading today, the largest decline in ST Yuancheng exceeded 98%, and the declines of ST Tongda and ST Tanyuan also reached 80%.
It is worth noting that according to Choice data, the closing stock price of ST Yuancheng before the resumption of trading was 9.84 yuan, which is almost the same as the current price of 0.13 yuan. In just one day, the stock price has almost fallen to zero.
On the news, all three companies were terminated for failing to meet the listing requirements of the Shanghai Stock Exchange.
After failing to meet the financial requirements of two consecutive annual reports, ST Tongda, ST Yuancheng, and ST Tanyuan were simultaneously delisted.
On the evening of May 28, 2024, SSE successively issued three delisting announcements, terminating the stock market listing of Shanghai Tongda Venture Capital Co., Ltd. (600647, ST Tongda), Yantai Yuancheng Golden Industrial Concept Co., Ltd. (600766, ST Yuancheng) and Tanyuan Technology Co., Ltd (603133, ST Tanyuan). The specific reason is that the financial problems of the three companies triggered the delisting conditions.
ST Tanyuan triggered delisting conditions because its audited net income for 2022 was negative, and its operating income after deducting business income unrelated to main business and income without commercial substance was less than 100 million yuan, which triggered delisting conditions. ST Yuancheng and ST Tongda triggered delisting conditions because their 2022 financial accounting reports were issued by audit agencies without express audit opinions.
Accumulated decline of 90%! These 3 stocks have officially entered the delisting consolidation period today.
The SSE also stated that according to the Stock Listing Rules, Article 9.6.1, 9.6.2, 9.6.4, and 9.6.10, etc., and the Shanghai Stock Exchange Trading Rules (2023 Revision), Article 3.3.13, from the next trading day after 5 trading days after the announcement decision is due, the stocks of these three companies will enter the delisting consolidation period of trading.
According to regulations, these stocks will enter the delisting consolidation period from today (June 5th), and the delisting consolidation period is 15 trading days, with the final trading date scheduled for June 26, 2024. During the delisting consolidation period, these stocks will be traded on the SSE Risk Warning Board, and within five trading days after the end of the delisting consolidation period, SSE will delist and terminate their listing.
In terms of stock performance, after the announcement of the risk of termination of listing, the three companies all saw continuous one-board limit down, and according to Choice data, the cumulative decline of the three companies has reached 90%.
Attention! Tomorrow, 2 more stocks will enter the delisting consolidation period.
In addition to the three companies announced to be delisted above, on May 29, the Shenzhen Stock Exchange announced that two more companies, CIFCO Investment (Group) Co., Ltd. (000A) (hereinafter referred to as “CIFCO Investment”) and Henan Xinye Textile Co., Ltd. (0005.HK) (hereinafter referred to as “Henan Xinye”) will also be delisted on the same day. Among them, CIFCO Investment has triggered the delisting situation of “non-standard audit opinions issued on financial accounting reports”; Henan Xinye has triggered the delisting situation of “negative net assets” and “non-standard audit opinions issued on financial accounting reports”.
It is worth noting that the above two stocks will enter the delisting consolidation period from tomorrow (June 6th), and the first day will also have no limit up or down. Investors should be extra cautious when participating in delisting consolidation period stock transactions.
In terms of stock performance, the two stocks both saw continuous one-board limit down in the days leading up to suspension of trading.
With the implementation of the new "Regulation Nine", the continuous upgrade of the delisting effort in the A-share market has indeed sounded the alarm for investors. However, the further purification of the market environment will help improve the overall quality and efficiency of the market, and create a more fair and transparent investment environment for investors.