Author: Zhao Liyun

Source: official account of company e

The listing of the Great Wall of China was terminated.

The Shenzhen Stock Exchange announced that from September 26, 2019 to October 30, 2019, the daily closing prices of A shares * ST Shencheng (000018) and B shares * ST Shencheng B (200018) of Great Wall of China through the Shenzhen Stock Exchange trading system were also lower than the par value of the shares (1 yuan).

According to the relevant regulations and the examination opinion of the listing Committee of Shenzhen Stock Exchange, it was decided on November 15, 2019 that the A-share and B-share of the Great Wall of China should be terminated and delisted from November 25, 2019.

The delisting period is 30 trading days, and the Shenzhen Stock Exchange will delist the An and B shares of the Great Wall of China on the next trading day after the delisting period expires.

The Great Wall of China was formerly known as Shenzhen Zhongguan Textile Printing and dyeing Co., Ltd.On December 4, 2015, the company changed its name to Great Wall of China, and issued domestically listed RMB common shares * ST Shencheng and domestically listed foreign capital shares * ST Shencheng B, which were listed and traded on the Shenzhen Stock Exchange in 1992.

In fact, as early as early May this year, * ST Shencheng B shares have been consistently below HK $1. However, according to the relevant regulations of the Shenzhen Stock Exchange, for listed companies that issue both A shares and B shares, the Shenzhen Stock Exchange has the right to terminate the listing and trading of the company's shares for 20 consecutive trading days through the Shenzhen Stock Exchange trading system (excluding the trading days on which the company's shares are suspended throughout the day). The daily closing price of the stock is also lower than the par value of the stock.

Therefore, only when the closing price of * ST Shencheng and * ST Shencheng B is lower than its face value for 20 consecutive trading days will the Great Wall of China reach the delisting condition. Although Great Wall of China is less likely to sell both shares below par value than a company that only issues A shares, the company eventually became the first A-share and B-share to be delisted at the same time.

In addition to the Great Wall of China, there is a stock that is also on the verge of A-share and B-share legs.

November 14 * ST Peng announced that as of November 13, the company's A shares closed at 0.95 yuan per share, while the company's B shares closed at US $0.082 per share. For the first time, both A shares and B shares closed below the par value of the company's shares.

According to the relevant regulations, for listed companies that issue both A-share and B-share on the Shanghai Stock Exchange, the daily closing price of A-share and B-share is lower than the par value of the stock for 20 consecutive trading days, the Shanghai Stock Exchange decides to terminate the listing of its shares.

As of November 15, * ST Pengqi and * ST Pengqi B have both been below face value for three consecutive trading days.

A series of thunderstorms caused the stock price to plunge.

Since 2018, the Great Wall of China has successively experienced problems such as freezing of major bank accounts, a large number of overdue debts and most of them have been involved in litigation, shortage of money available for operating activities, and so on, resulting in debt crisis and operational difficulties.

In February 2019, * ST Shencheng revealed its huge debt in response to a letter from the Shenzhen Stock Exchange, saying that as of the date of reply, the total amount of principal and interest of the company's overdue debt was 2.496 billion yuan (of which, 2.412 billion yuan in principal and 84 million yuan in interest), and the total pledge of accounts receivable was 3.269 billion yuan, which was used to provide pledge or supplementary pledge on the company's debt. A total of 39 accounts of the company and its subsidiaries have been frozen due to debt problems, and the balance of frozen funds is 17.8265 million yuan. the seizure and freezing of assets mentioned above have had a great impact on the production and operation of the company.

Then, in May this year, * ST said in a clarification announcement that the total amount of wages owed by the company was not 56 million of the amount reported online, but 81.4158 million yuan, including major subsidiaries. The company has actively coordinated and communicated with employees on the existing arrears of wages and labor arbitration.

On October 15, * ST Shencheng also issued a notice on information disclosure self-inspection and rectification measures, saying that on December 14, 2017, the Great Wall of China signed a "non-recourse domestic factoring contract" with Shihong factoring, agreeing that the company would transfer a discount of 232 million yuan on accounts receivable to Shihong factoring. However, "this business is not a real factoring business" and "most of the funds of the factoring company are provided by the company". The purpose is to "achieve the purpose of undercounting the provision for bad debts of accounts receivable and falsely increase the company's current net profit. The inflated amount is about 35.7376 million yuan."

The thunderous share price of Great Wall of China plunged at the end of April and fell by its daily limit of 14 in 16 trading days.

Plan to reorganize and save oneself.

The Great Wall of China entered the A-share market in 2015 through backdoor Zhongguan A, and promised that the deduction net profit from 2015 to 2017 would not be less than 346 million yuan, 439 million yuan and 538 million yuan, respectively. However, the company's non-net profit fell 19.83% in 2017 to 377 million yuan compared with the same period last year, with a loss of 1.411 billion yuan in 2018.

In the first half of 2019, the company achieved revenue of only 256 million yuan, down 83.85% from the same period last year, while its net profit lost 1.417 billion yuan, a sharp decrease of 1,083.87% compared with the same period last year. In the first three quarters of this year, the company's operating income was 324 million yuan, down 85.65% from the same period last year, while the net profit loss was 1.53 billion yuan, down 6098.52% from the same period last year. According to the 2019 semi-annual report, the company's total assets are 7.972 billion yuan, but its total liabilities are as high as 9.126 billion, with an asset-liability ratio of 114.48%.

In the rapid decline in performance, the company is on the verge of delisting in Beijing, the Great Wall of China began to plan to save itself.

In May 2019, Chen Lue, the controller of * ST Shencheng, introduced the restructuring investor Chongqing Southern Xincheng Group to participate in and promote the restructuring of the company as a restructuring party, and signed a "letter of intent". However, the above cooperation was terminated in September 2019.

On September 19th, Chen Lue signed the Investment Cooperation Agreement with Henan Yufa Group. The two sides agreed that Yufa Group should participate in and promote the reorganization process of * ST Shencheng as the restructuring party. Upon completion of the reorganization, Yufa Group will become the controlling shareholder of the listed company. However, the specific reorganization plan of ST Shencheng needs to be formulated by the reorganization manager after the company enters the reorganization process, and the reorganization plan approved by the competent court shall prevail.

Up to now, there is still significant uncertainty about whether * ST Shencheng can successfully enter the reorganization process.