Another stock triggered the suspension of listing. This time, the loss reached a huge loss of 18.4 billion dollars, and accounting firms are still unable to express their opinions!

On the evening of April 20, *ST Xinwei released its 2019 annual report, with a huge loss of 18.436 billion yuan, three consecutive years of losses, and two consecutive years of audit reports issued by accounting firms that could not express an opinion, triggering the suspension of listing rules.

Trigger the suspension of listing. *ST Xinwei suspended trading on April 21, and the Shanghai Stock Exchange will decide whether to suspend the listing of the company's shares within 15 trading days after the suspension begins. Normally speaking, there is no suspense about the suspension of listing.

According to the latest data, *ST Xinwei's closing price was 1.39 yuan, the total market value was still 4.06 billion yuan, and the number of shareholders was 123,600.

A huge loss of 18.4 billion yuan triggered the suspension of listing

On the evening of April 20, *ST Xinwei released its 2019 annual report, with a huge loss of 18.436 billion yuan. This is the third year in a row that the stock has lost money. At the same time, the stock continued to be issued audit reports by accounting firms in 2019, which has already triggered the suspension of listing rules.

Previously, *ST Xinwei had been losing money for two consecutive years, with continuous losses of 1,754 billion yuan and 2,898 billion yuan in 2017 and 2018.

Trigger delisting and suspension of trading: the exchange will decide whether to suspend the listing

According to the relevant regulations of the Shanghai Stock Exchange, *ST Xinwei shares will be suspended from the date the company discloses its 2019 annual report (April 21), and the Shanghai Stock Exchange will decide whether to suspend the listing of the company's shares within 15 trading days after the suspension begins.

According to past practice, there is basically no suspense about suspending the listing; it is only possible to follow the procedure on the Shanghai Stock Exchange. *ST Xinwei said that after receiving the decision of the Shanghai Stock Exchange to suspend the listing of the company's shares, ST Xinwei said that the listing of the company's shares will be suspended.

Once the market capitalization was as high as 200 billion, it is now down 98%

At its peak in June 2015, *ST Xinwei's market capitalization reached 1986 billion yuan. Now the stock price has plummeted 98%, leaving only 4.06 billion yuan in market capitalization.

However, its credibility, which was once extremely popular, was questioned by the media for financial fraud at the end of 2016. In particular, after the overseas business was falsified, it continued to explode for more than two years. After the resumption of trading in July 2019, stock prices fell 42 times in a row, and the loss and debt crisis continued.

Mysterious Controllers and Stories from the Past

According to public information, *ST Xinwei's chairman and president was held by the corporation Wang Jing. In the early years, under the helm of the actual controller Wang Jing, *ST Xinwei's market capitalization reached nearly 200 billion yuan, and was once included in the MSCI China A-share index.

According to a previous report by China Fund News, Wang Jing attracted the world's attention by excavating the Nicaragua Canal in 2014, with a total investment of 50 billion US dollars. According to the agreement, Wang Jing's private company Hong Kong Nicaragua Canal Development and Investment Co., Ltd. will excavate a canal in Nicaragua connecting the Pacific Ocean and the Atlantic Ocean. Previously, Wang Jing met Nicaraguan President Daniel Ortega through a local telecom investment. After the canal is completed, Wang Jing's company will receive a 100-year franchise.

The excavation of the canal and the operator aren't big enough; Wang Jing hopes to build a low-orbit satellite constellation system. In August 2016, Xinwei revealed that it plans to buy 100% of the shares of the Israeli communications satellite operator SCC for 285 million US dollars to privatize the listed company.

In an interview with foreign media, Wang Jing didn't want to talk about the details of his wealth accumulation; he used the idiom “gather armpits to form a fist” to describe this process. The huge investment in the Nicaraguan Canal is also said to have nothing to do with Wang Jing's assets at Xinwei Group. On the international stage, the young businessman is known as the “Mysterious Tycoon.”

In foreign media reports, he emphasized that he is an “normal person” and that “his father is an ordinary worker. He was ill for 11 years. He died in 2010. His mother has retired, and in addition, he has a daughter.” As for his life before 2010, he summed it up as “studying financial investment in Hong Kong and opening a gold mine in Cambodia”.

Wang Jing, who was born in December 1972, publicly stated that she was born in Beijing and studied traditional Chinese medicine at Jiangxi University of Traditional Chinese Medicine. Ocean Xinhe, which is wholly controlled by Wang Jing, once also planned to invest 10 billion US dollars to build a deep-water port project in Crimea, Ukraine. According to media reports, Dayang Xinhe once reached a cooperation with Ukraine's Kyiv Water Resources Investment Co., Ltd. and held a press conference. However, due to the sudden change in the situation in Ukraine, these projects may eventually be difficult to achieve.

When stock prices were high in June 2015, Wang Jing was also among the top 200 richest people in the world according to the “Bloomberg Billionaires Index”, with a net worth of 10.2 billion US dollars.

Now, however, it feels like everything has gone up in smoke.

A number of shares have been suspended and delisted this year

Since this year, *ST Yingfang and*ST Qiulin have been suspended from listing, and *ST Baoqian has been ordered to be delisted, becoming the first stock to be delisted in 2020.

*ST Baoqian (previously Baoqianli for short) announced on the evening of April 1 that the company received the “Decision on the Termination of the Listing of Jiangsu Baoqianli Video Technology Group Co., Ltd.” from the Shanghai Stock Exchange. The Shanghai Stock Exchange decided to discontinue the listing (delisting) of the company's shares.

*ST Baoqian thus became the first company to be forcibly terminated from listing since 2020. From Fengguang Zhongda shares in 2015 to now being delisted, *ST Baoqian's journey is staggering. *ST Baoqian's listing was suspended in 2019. After publishing the 2019 annual report this year, there was a huge loss. Net assets were negative, and an audit report that could not express an opinion was issued, triggering mandatory delisting conditions.

Once upon a time, the biggest internet stock LeTV was on the verge of delisting

With the disclosure of the annual reports of listed companies, it is expected that there will also be companies delisted and suspended due to loss of performance and other reasons. Among them, LeTV Network, which has received much attention from the market, is expected to be delisted after the annual report is disclosed since it has already predicted huge losses in 2019.

Among the companies that were suspended from listing in 2019, judging from the current performance forecasts and reports, LeTV, *ST Kaidi, Jinya Technology, *ST Longli, Qianyan Pharmaceutical Machinery, etc. continued to lose money in 2019, and it is very likely that they will be delisted.

However, based on losses in 2017 and 2018, and the projected loss of performance in 2019, currently *ST Salt Lake and Shengyun Environmental are also at risk of suspension of listing.

Among these, *ST Salt Lake in the first quarter of this year*ST Salt Lake has already turned a loss into a profit, forecasting a profit of 650 million yuan to 950 million yuan in the first quarter.

Shengyun Environmental, on the other hand, expects to continue to lose 230 million yuan to 235 million yuan in the first quarter of this year. However, the stock is planning a major asset restructuring, and there is uncertainty about whether it will have a significant impact on 2019 results and this year's operations.