Finance Association News October 14 (Reporter Wang Bin) A shares 2023-2024 information disclosure evaluation results have been released, with 912 companies receiving an A disclosure rating. Thus, the number of listed companies for the fiscal years 2022-2023 and 2023-2024 with two consecutive A disclosure ratings and a market cap exceeding 10 billion yuan is 471. According to the September 2024 Securities Regulatory Commission's 'Opinions on Deepening Market Reforms for Mergers and Acquisitions of Listed Companies,' these 471 companies meet the requirements for simplified restructuring audits.

577 listed companies were downgraded by the exchange, with Hainan Poly Pharm's disclosure rating dropping from A to D.

Recently, the Shanghai and Shenzhen Stock Exchanges released the 2023-2024 information disclosure evaluation results, covering the period from July 1, 2023, to June 30, 2024. According to the 'Evaluation Guidelines,' the assessment of listed companies' information disclosure performance is mainly based on the quality of information disclosure, combined with factors such as the level of standard operation of listed companies and the protection of investor rights, classified from highest to lowest as A (excellent), B (good), C (qualified), and D (unqualified) four levels.

Data shows that in the fiscal year 2023-2024, a total of 5,054 listed companies in A shares participated in information disclosure evaluations, of which 912 companies received an A disclosure rating, accounting for 18.05%. Looking at the industry distribution based on the first-level industry names of the Shenwan Industry Classification (2021), for the fiscal years 2023-2024, the electronics industry, pharmaceuticals and biotechnology, machinery and equipment, and power equipment had relatively high proportions in various rating categories.

Compared to the previous year, 474 listed companies had their disclosure evaluations upgraded by the exchange. Among them, 247 listed companies saw an upgrade from B to A in disclosure rating, Hua Da Smart Manufacturing (688114.SH) was upgraded from C to A, and 166 companies upgraded from C to B. Meanwhile, 577 listed companies were downgraded by the exchange, accounting for 11.42%. Among them, 221 listed companies had their disclosure ratings lowered from A to B, 10 from A to C, and 252 from B to C. In addition, 94 listed companies had their disclosure ratings downgraded to D.

Additionally, 577 listed companies were downgraded by the exchange, accounting for 11.42%. Among them, 221 listed companies saw a downgrade from A to B in disclosure rating, 10 listed companies from A to C, and 252 listed companies from B to C. Furthermore, 94 listed companies had their disclosure ratings downgraded to D.

Of note, a total of 152 listed companies had a D disclosure rating for the fiscal years 2023-2024, accounting for 3.01%, an increase of 34 companies from the previous year. Among them, Hainan Poly Pharm (300630.SZ) saw its disclosure rating drop from A in the previous year to D.

According to public information, Hainan Poly Pharm failed to disclose its annual report for 2023 on time due to the issuance of an auditor's report with a qualified opinion during the evaluation period, and received administrative penalties; and the company was investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations.

According to incomplete statistics from Cailiaohangye reporters, as of now, there are a total of 31 A-share listed companies with a consecutive three-year disclosure rating of D, among which 21 listed companies that are 'on the brink' account for 67.74%. Based on past experience, these 31 listed companies with a consecutive three-year disclosure rating of D may become a high-risk area for delisting.

Looking at the sectors, a total of 2247 listed companies on the Shanghai Stock Exchange participated in the disclosure rating for the 2023-2024 period, with 425 listed companies receiving a disclosure rating of A, accounting for 18.91%. Among them, a total of 566 STAR Market listed companies participated in this assessment, with 108 companies receiving an A rating, accounting for 19.08%.

Meanwhile, 2807 listed companies participated in the disclosure rating on the Shenzhen Stock Exchange, with 487 listed companies receiving a disclosure rating of A, accounting for 17.35%. Specifically, 286 companies from the main board of the Shenzhen Stock Exchange received an A rating, accounting for 19.3%; and 201 companies from the Growth Enterprise Market (GEM) were rated A, accounting for approximately 15%.

In addition, during the 2023-2024 period, the number of listed companies on the Shanghai and Shenzhen Stock Exchanges with a disclosure rating of D was 63 and 89 respectively, with a relatively low percentage.

471 companies have met the threshold of 'continuous A+ hundred billion' and are eligible for the simplified restructuring review process.

According to relevant regulations, listed companies with an A-level disclosure rating will be given greater autonomy by regulatory agencies in terms of information disclosure, temporary reports disclosed will be exempt from post-event reviews in principle, and they will receive a "green channel" in the aspects of mergers and reorganizations, refinancing audits, etc.

In September of this year, the CSRC issued the "Opinions on Deepening the Reform of M&A Market for Listed Companies," proposing to establish a simple review process for restructuring. This includes mergers among listed companies, companies with operating norms, market cap exceeding 10 billion yuan and continuous A-grade information disclosure quality assessments over two years issuing shares to buy assets (not constituting a major asset restructuring), simplifying the review process, shortening the registration review time. At the same time, making good use of mechanisms such as "small and fast" for audits, providing a "green channel" for technology-based enterprises that break through key core technologies in M&A reorganization, accelerating the audit process, and enhancing M&A convenience. The CSRC also clearly indicated that reorganization transactions applicable to the simplified review process do not require the review of the exchange's M&A reorganization committee and can be completed within 5 working days.

According to the latest release of the Exchange's 2023-2024 annual information disclosure evaluation results, journalists from Caixin found that there are currently a total of 471 A-share listed companies that have crossed the "two-year consecutive A+ hundred billion market cap" threshold, including 174 private enterprises.

In terms of industry distribution, they are mainly concentrated in 8 major sectors: the electronics, csi sws health care index, electric power equipment, machinery equipment, jungonghangye, transportation, autos, and utilities sectors. The number of quality companies meeting the "two-year consecutive A+ hundred billion market cap" requirements in these sectors are 49, 44, 39, 29, 27, 25, 25, and 23 respectively, totaling 261 companies, accounting for 55.41%.

In addition, the number of companies in other industries meeting the "two-year consecutive A+ hundred billion market cap" requirements are as follows: 19 in the basic chemical industry, 19 in the computer industry, 19 in the non-banking financial industry, 16 in the csi sws food & beverage index, 15 in the huaan csi banks etf feeder fund-a, 13 in the nonferrous metals industry, 13 in the communication industry, 12 in the media industry, 11 in the building decoration industry, 10 in real estate, 10 in the household appliance industry, 7 in the steel industry, 7 in the building materials industry, 6 in the coal industry, 5 in the retail industry, 5 in the beauty and care industry, 5 in the textile and apparel industry, 5 in the petroleum and petrochemical industry, 4 in the agriculture, forestry, animal husbandry, and fishery industry, 4 in the light industry manufacturing industry, 4 in the eco-friendly concept industry, and 1 in the social service industry.

2023-2024 Annual Information Disclosure Evaluation Results Query Website:

Evaluation results of information disclosure work of Shanghai-listed companies from 2023 to 2024.

Evaluation results of information disclosure work of Shenzhen-listed companies from 2023 to 2024.

(Specific query methods for information disclosure results can refer to the early warning of "delisting risk stocks"! Exchange ratings are easily overlooked but should not be ignored. 38 companies have failed the information disclosure evaluation for three years.