flyfishing| Strict supervision continues during the year, nearly 100 companies "wearing hats"

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After the disclosure of the annual report, another batch of listed companies were given risk warning or delisting risk warning. According to Wind statistics, since the beginning of this year, 93 new companies have been "wearing hats" (excluding repeated "wearing hats" companies), of which 55 have been delisted risk warnings (i.e. * ST) and 38 have been warned of other risks (i.e. ST).

As of May 26th, there are 180 A-share risk warning stocks, 95 have been implemented * ST,85 have been implemented ST. Market participants believe that this reflects the regulatory authorities' strict control of market risks and the importance they attach to the protection of investors' rights and interests. At the same time, investors also need to cultivate rational investment, value investment, long-term investment concept.

Zheng Dengjin, associate professor of the Central University of Finance and Economics and deputy director of the Capital Market Supervision and Reform Research Center, told Securities Daily that on the one hand, regulators warn companies with problems in a timely manner. it can help investors better understand the actual situation of the company, avoid blind investment, reduce unnecessary losses, and ensure the healthy development of the market. On the other hand, "wearing a hat" is a warning to the company's own operation. These companies need to face the problem squarely and take measures to improve their business conditions and restore investor confidence.

55 new * ST companies were added during the year

flyfishing| Strict supervision continues during the year, nearly 100 companies "wearing hats"

Among the 55 companies that have been implemented ST this year, some companies have been implemented ST and * ST successively, and some companies have repeatedly implemented ST. From the point of view of the final ST, 54 are because the 2023 annual report initially touched the financial delisting target and have been "wearing a hat" since April, that is, the net assets at the end of the period are negative, the financial report is audited with a non-standard audit opinion, or the audited net profit of the most recent fiscal year is negative and operating income is less than 100 million yuan. * ST Jinke was given a delisting risk warning because the company was ruled by the court to accept restructuring.

38 companies were implemented ST, mainly due to the non-standard audit opinions issued by the company's internal control reports, the non-operating occupation of funds by the controlling shareholders and their related parties, the negative net profit after deducting non-recurring profits and losses in the last three fiscal years, and the audit reports of major bank accounts related to significant uncertainties related to continuing operations issued by the audited institutions.

Companies that have been ST for touching financial delisting targets will be forced to delist by the exchange if they hit the financial delisting targets for the second time in the 2024 annual report. The companies that have been implemented ST, although the risk is not as high as * ST companies, but still face a sharp fall in share prices and hit the face value of the risk of delisting.

Tian Lihui, dean of the Institute of Financial Development of Nankai University, said in an interview with the Securities Daily that at present, the number of companies wearing "stars and hats" has reached 180, which shows that China's regulatory authorities strictly implement and earnestly implement the risk warning system and delisting rules, adhere to the trend of strict supervision of securities, and form a trend of zero tolerance and standardization. Wearing a hat on risky companies can warn investors, guide and optimize the allocation of resources, and improve the transparency, stability and effectiveness of the market, which is an important measure for investor protection. At the same time, the implementation of risk warning or delisting risk warning of listed companies also shows that there are problems in their financial situation, operating capacity or other aspects, which need to attract the attention of the market and investors.

It is not impossible to "pick stars and hats".

We can learn from the current situation of the "star-wearing hat" company last year. In the same period last year, 85 companies were "hooded" for the same reason as this year. Among them, 58 companies have been implemented * ST,27 have been implemented ST.

At present, of the 58 companies that were delisted by * ST last year, 17 have been delisted, 13 have been delisted (received the advance notice of termination of listing by the exchange), 2 have successfully "removed their stars and caps", and 4 have changed from being implemented * ST to implementing ST. Other companies are also applying to the exchange to revoke delisting risk warnings or withdraw delisting risk warnings and implement other risk warnings according to the company's situation.

Among the two companies that have successfully "removed stars and hats" this year, Xinhua Lianlian (rights protection) has changed its net assets from negative to positive through bankruptcy restructuring; Stone Refining Airlines has completed issuing shares to specific objects, and the actual controller has changed from natural person Zhang Zheng to Sichuan SASAC, realizing that the company's net assets have changed from negative to positive.

Tian Lihui said that although it is difficult for enterprises to "pick stars and hats", it is not an impossible task. Asset restructuring and business restructuring can be carried out to improve the company's financial situation and change the net assets from negative to positive. It can also improve corporate governance and financial situation through capital operation and capital injection, such as issuing shares to specific objects and changing the actual controller of the company. Companies that have implemented * ST need to strengthen internal management and improve operational efficiency in order to meet the delisting risk warning cancellation standards of the exchange.

"it is difficult for enterprises to take off stars and hats, but through bankruptcy restructuring, optimizing management and improving performance, some companies have successfully got rid of the risk warning and restored their normal market position." Zheng Dengjin said that this usually requires the company to carry out in-depth financial, management, strategic and other aspects of reform and adjustment. At the same time, when considering investing in these companies, investors also need to be alert to the relevant risks and carefully analyze the company's financial situation, market prospects and industry conditions.

Of the other 27 companies that have implemented ST, ST Yuetai, ST Midea, ST Sunshine City, ST Taihe and ST VIP have delisted at face value, while one company has locked in delisting. Overall, among the "star-wearing" companies last year, 36 companies have delisted or locked delisting, accounting for 42%Flyfishing.35%.

The new "National Nine articles" proposes to strengthen the supervision of delisting. On April 30, a new round of delisting reform was launched, the standard of compulsory delisting was further tightened, and four types of delisting indicators such as major illegal delisting, financial delisting, transaction delisting and standardized delisting were optimized and improved.

"With the implementation of a new round of delisting reform, delisting standards will become more stringent, and it is expected that the number of companies that have been ST or *ST may increase." Tian Lihui said that investors need to pay more attention to the company's fundamentals, avoid investing in companies with delisting risks, and strengthen risk awareness; at the same time, investors need to diversify their investments, reduce the investment risk of a single stock, and diversify asset allocation; It is also necessary to conduct in-depth research on the company's financial statements and business model, refer to professional opinions and analytical reports, and make more informed investment decisions.

"The purpose of delisting reform is to promote the healthy development of the market. Investors should respond actively and respond to changes in the market by improving their investment knowledge and risk management capabilities." Tian Lihui said.