Since the beginning of 2026, China has witnessed two listed companies delisting as they both faced financial pressure.
One of the companies, Wafangdian bearing Co., Ltd. (Wafangdian Bearing), released a “Suspension of Trading and Risk Warning Announcement of Possible Termination of Listing of Stocks” on March 2. The announcement stated that the deadline for the tender offer had expired as of the close of business on February 27, 2026. Due to the company’s shareholding no longer meeting the listing conditions, it would apply to the Shenzhen Stock Exchange to voluntarily terminate the listing of its stocks. The company’s stocks would be suspended from trading starting from the morning of March 2, 2026. Additionally, the stocks would be delisted from the Hong Kong Stock Exchange within five trading days from the Shenzhen Stock Exchange’s announcement of the decision to terminate the listing.
Prior to this, on February 27, Deppon Logistics Co., Ltd. (Deppon Logistics) also issued an “Announcement on Submitting an Application for Termination of Listing to the Shanghai Stock Exchange.” The announcement mentioned the intention to voluntarily withdraw the listing of A shares on the Shanghai Stock Exchange through a resolution of the shareholders’ meeting. The matter of delisting had been approved during the company’s first extraordinary general meeting of shareholders in 2026. Furthermore, the company submitted an application to the Shanghai Stock Exchange on February 26, 2026, for the withdrawal of the company’s stocks from trading, pending the exchange’s decision on acceptance.
Both of these companies initiated the delisting process, with Deppon Logistics becoming the first listed company in the A-share market to propose voluntary delisting in 2026. Both companies are currently facing challenges in terms of their financial performance.
According to a report from the Securities Times on March 2, Wafangdian Bearing is expected to incur a net loss ranging from 40 million to 75 million Chinese yuan for the full year of 2025, with a projected non-net profit loss between 65 million and 110 million yuan. As of the end of 2024, the net profit attributable to the shareholders of Wafangdian Bearing had been in continuous losses for six years, with a deduction of non-recurring profits and losses to the shareholders of the listed company showing continual losses for 12 years since 2013.
Deppon Logistics anticipates a net loss of 439 million to 539 million yuan in 2025.
In response to this situation, Tan Gefei, Chief Consulting Expert of Shenzhen Elephant Investment Advisory Co., Ltd., commented to Caijing Magazine, “The voluntary delisting of companies under operational pressure aims to reduce costs, stop losses, and mitigate risks, usually providing cash options for investors to exit.”
In China, companies initiating delisting are relatively rare. According to data from the information service provider Wind Information, the number of companies voluntarily delisting from the capital market from 2020 to 2025 were 1, 5, 1, 2, 1, and 6, respectively.
Tian Lihui, the Director of the Institute of Financial Development at Nankai University, believes that future voluntary delisting will exhibit features of diversification and fast-paced trends, including absorption merges driven by industry consolidation and voluntary exits under operational pressure.