A batch of ST companies applying for "decapitation" still have potential risks or add uncertainties

Topic: Don't be pessimistic about the subsequent performance of A-shares High dividend sector is still the main line of allocation

Stock speculation depends Jin Qilin analyst research report , authoritative, professional, timely and comprehensive, to help you tap potential theme opportunities!

□ Due to incomplete "risk elimination"* ST Jinyi (Rights protection) The desire to "take off the hat" was not fully realized, but "take off the star", and the securities abbreviation was changed to "ST Kingee"; Ningbo Securities Regulatory Bureau *ST reclamation (Rights protection) The "Delisting Risk Reminder Letter" issued by the company casts a shadow on the prospect of the company's "decapitation"

□ Some companies received regulatory attention and inquiries after applying for "decapitation", requiring them to further clarify some potential risks. Typical companies include ST Tianyu (Rights protection) 、 *ST rectangle (Rights protection)

　　□ *ST Mogao However, in the face of the requirements of "tightening financial delisting indicators" proposed by the new "National Ninth Article", it is still to be seen whether the company can truly "take off the hat"

□ Or lack of confidence in "taking off the hat", ST Shengda Directly withdraw the application for cancellation of other risk warnings for the company's shares

◎ Reporter Li Shaopeng

With the elimination of risk factors one by one, a number of ST or * ST companies put "decapitation" on the agenda. According to the incomplete statistics of the reporter of Shanghai Securities News, up to now, more than 40 companies have applied to revoke delisting risk warnings or other risk warnings. At present, 20 companies have successfully "decapitated", and more than 20 companies have not yet received the final decision of the exchange.

On the whole, the companies that have applied for "decapitation" at present all said that the relevant risk factors have been eliminated and revealed positive signals to the market. However, the reporter noticed that some companies' internal control management status, performance expectations, pending legal proceedings and other issues still seem to have hidden dangers, and there is still uncertainty about the health, stability and sustainable development of subsequent companies' business. It is not easy for individual companies to successfully "take off the hat".

In addition, a number of companies applying for "decapitation" have also entered the regulatory horizon recently. The Exchange requires the company to further clarify and clarify the potential risk issues to ensure that the risk factors are completely eliminated to protect the rights and interests of investors.

"Risk elimination" is not complete

From the perspective of the companies that have applied for "de capping" at present, the companies all said that the situation that triggered delisting risk warnings or other risk warnings has been eliminated, which meets the conditions for "de capping". However, the reporter found that the application for "decapitation" was not all right, and whether it could be completely "decapitated" still needed to be comprehensively evaluated for risk factors, waiting for the final decision of the exchange. From the perspective of practical cases, some companies put forward applications, and then fell into a "minefield". The prospect of "decapitation" is also uncertain.

Jinyi Culture (now known as "ST Jinyi") is a typical case. As the net assets at the end of 2022 are negative superimposed annual report, Jinyi Culture was issued with a "non-standard" opinion. After the disclosure of the annual report in 2022, Jinyi Culture "wore stars and hats". With the net assets becoming positive in 2023 and the elimination of "non-standard" opinions, the company applied for "decapitation" on the evening of March 27 this year.

However, only two days later, the company announced on the evening of March 29 that it had received the Notification of Filing issued by the CSRC, and the CSRC decided to file a case against the company due to suspected violations of information disclosure. According to the Administrative Penalty Notice disclosed by the company, the main content of the company's suspected violations of laws and regulations is that the false increase of inventory in 2020 and 2021 led to false records in the annual report.

As a result, the desire of * ST Kingee to "take off the hat" has not been fully realized, just "take off the star", and the securities abbreviation has been changed from "* ST Kingee" to "ST Kingee".

The situation is similar to that of * ST reclamation. Specifically, due to the fact that the 2022 annual report was issued by the annual audit accountant and could not express opinions, the reclaimed shares that had been subject to ST's delisting risk warning due to illegal guarantees and related party capital occupation, the company's securities abbreviation was changed to "* ST reclaimed shares".

After one year's efforts, the Company indicated that the above risks had been eliminated at the first time after the disclosure of the 2023 annual report, and applied to withdraw the relevant risk warnings. However, the "Delisting Risk Reminder Letter" issued by Ningbo Securities Regulatory Bureau to the company later cast a shadow on the prospect of the company's "decapitation".

Looking back, * ST Reclamation announced at the end of January this year that it had corrected accounting errors in its financial statements from 2018 to 2022. Ningbo Securities Regulatory Bureau intervened in the investigation due to the changes in the nature of profits and losses in some of these years and the extensive impact of the corrections on the re comprehensive audit.

The Delisting Risk Reminder clearly states that if the annual report of * ST Reclamation from 2020 to 2022 is subsequently identified as having false records, the company's shares will be subject to major illegal compulsory delisting.

"Take off the hat" needs to be clarified

To some extent, the application of listed companies for "decapitation" sends a positive signal to the market, but the risk elimination that many companies think of themselves seems to be open to discussion. The reporter noticed that after some companies applied for "decapitation", they received regulatory attention and inquiries, and asked them to further clarify some potential risks.

ST Tianyu, who claimed to eliminate the risk of illegal guarantee, received the inquiry letter from the regulatory authorities as soon as he issued the application for "decapitation" at the end of April. Among them, in view of the company's statement that the dispute over illegal guarantees has been settled, Shenzhen Stock Exchange requires ST Tianyu to comprehensively check again whether the company has other undisclosed illegal guarantees, fund occupation and other situations in combination with the non-standard seal use process in Changyu investment income distribution. At the same time, check and explain whether there are other situations where other stock transactions should be subject to other risk warnings.

Further, the failure of ST Tianyu's 2023 annual report and other proposals to be passed at the annual shareholders' meeting has also attracted regulatory attention. As for the difference in voting opinions between the board of directors and shareholders, Shenzhen Stock Exchange focused on asking the company "whether there is a situation of control struggle".

In the face of inquiry, ST Tianyu has only replied to "whether there is a situation of control struggle", saying that the event is a "feedback" of major shareholders' dissatisfaction with the work of the Board of Directors, and there is no control struggle. However, the company has not replied to the annual report inquiry letter.

The * ST box that wanted to "take off the hat" was also inquired by the Exchange. Looking back, * ST Rectangle and the acquired subsidiary Kang Mingsheng experienced several fights. The related events not only led to the listed company's stock "wearing stars and hats", but also made the company's 2021 annual report and 2022 internal control report issued non-standard opinions. At the beginning of 2023, Kang Mingsheng was investigated by the CSRC; In April 2024, the CSRC filed an investigation on * ST.

For the application reason of * ST Rectangle "the impact of matters involved in the negative opinion of the 2022 annual internal control audit report has been eliminated", the Shenzhen Stock Exchange asked the company to explain the control and rectification of Kang Mingsheng in the inquiry letter of the annual report? Later, the company replied that it had implemented effective control over Kang Mingsheng.

The reporter noticed that Shenzhen Stock Exchange seemed not satisfied with the reply of * ST Rectangle, and then issued a second inquiry letter on the annual report, asking the company to explain in detail the progress of relevant matters after the company and Kang Mingsheng were investigated, and the impact on the company.

"It is very important to reply to the inquiry. Once the application for 'decapitation' is passed, it means that all risk factors have been eliminated." Some market people said that the reply to the inquiry is the "big exam" before the "decapitation" of ST shares, which is related to the fate of the applicant in the capital market. Relevant companies should pay attention to it, and investors should also pay attention to the risk changes in time.

Be alert to potential risks

The reporter noted that there are still some ST companies that have sufficient reasons to apply for "decapitation", and their fundamentals have also improved to some extent. However, in the face of the requirements of "tightening financial delisting indicators" proposed by the new "National Ninth Article", whether they can achieve "decapitation" in a real sense still needs to be observed, and the potential risks hidden after the "decapitation" of individual companies also need to be highly vigilant.

Taking * ST Mogao as an example, the company's audited net profit in 2022 is negative, and the operating income after deducting the business income unrelated to the main business and the income without commercial substance is less than 100 million yuan, and the company's shares are subject to delisting risk warning.

This situation will be reversed in 2023. * ST Mogao achieved revenue of 198 million yuan that year, so the company applied for "decapitation". It should be noted that with the new delisting regulations raising the revenue threshold of the main board loss making companies from 100 million yuan to 300 million yuan, * ST may once again be delineated as a "high-risk group".

Financial data shows that * ST Mogao, which has lost money for three consecutive years, has had an operating income of less than 200 million yuan since 2019. In this regard, some people close to the company said frankly that the goal of this year is to achieve a large revenue.

　　 *ST Meigu (Rights protection) The "star picking" road seems not smooth. Although the net assets of the Company will become positive in 2023, the situation that the net profit will continue to be negative after deducting non profits from 2019 is not optimistic. In addition, * ST Meigu is also involved in lawsuits. It is disclosed that as of May 7, in the targeted financing plan of Jinghan Real Estate Group (* ST Meigu provides guarantee for it), the amount of outstanding principal due is about 215 million yuan, there are 9 cases that have not yet been decided, and the amount of litigation involved is about 53.7858 million yuan. There is also one case that has not yet been arbitrated, with an amount of about 135 million yuan.

The reporter also found that some companies had not enough confidence in "taking off the hat", and some companies had already played a "retreat drum". ST Shengda directly withdrew the application for cancellation of other risk warnings on the company's shares on April 30.

Specifically, the company said that it paid attention to the Shenzhen Stock Exchange Stock Listing Rules (Revised Draft for Comments in 2024) issued by Shenzhen Stock Exchange, and revised the implementation of other risk warnings and other relevant provisions. ST Shengda said that in order to make the relevant cancellation application comply with the provisions of laws and regulations and the latest regulatory rules, the company decided to withdraw the application.

A person familiar with the operation of listed companies reminded that although some companies have applied for "decapitation", their fundamentals have not been completely reversed, and there is uncertainty about whether they can "regain new life". For such risk companies, investors should carefully identify and evaluate the potential risks.

MACD Golden Cross signal is formed, and these stocks are rising well!