On June 6, 2024, Tai’an Tang Group Co., Ltd. (Tai’an Tang) issued an announcement stating that the company had received a notice of delisting from the Shenzhen Stock Exchange, with the final trading date of the company’s stock set for July 4.
In the “Announcement Regarding Receipt of Decision on Delisting of Stock,” Tai’an Tang stated that on June 5, they received the decision on the delisting of Guangdong Tai’an Tang Pharmaceutical Co., Ltd. issued by the Shenzhen Stock Exchange. The exchange decided to delist Tai’an Tang’s stock.
The announcement mentioned that the company’s stock would resume trading on June 14 and enter into a delisting arrangement period, which would last for fifteen trading days, with the final trading date expected to be on July 4.
The Shenzhen Stock Exchange cited the reason for Tai’an Tang’s delisting as follows: “Due to the audit report for your company’s financial statements for the year 2022 issued by an accounting firm expressing an inability to form an opinion, your company’s stock trading has been subject to delisting risk warning since May 5, 2023.”
In 2021, Tai’an Tang’s financial report for 2021 received a qualified audit report, involving issues with inventory, prepaid accounts, and other receivables. In 2022, the company’s financial report was issued an audit report expressing an inability to form an opinion, primarily due to significant uncertainties in the company’s ongoing operating capabilities, non-operational use of funds by controlling shareholders, and the impact of inventory items. The company’s stock trading was also subject to delisting risk warning since May 5, 2023 (*ST Tai’an). In 2023, the financial report of *ST Tai’an once again received an audit report expressing an inability to form an opinion.
These reasons directly led to the delisting of Tai’an Tang’s stock.
Additionally, *ST Tai’an had also falsified financials for multiple years in a row. *ST Tai’an inflated profits by 66 million yuan, 144 million yuan, 116 million yuan, and 103 million yuan respectively in the years from 2018 to 2021, accounting for 20.08%, 115.79%, 304.72%, and 12.25% of the total reported profits for each period.
Public records show that Tai’an Tang is one of China’s well-known listed companies in traditional Chinese medicine, a national intangible cultural heritage enterprise, and a Chinese time-honored brand with a history of nearly 500 years, owning exclusive and characteristic varieties such as Qilin Pill, Joint Relief Pill, and Mind Soothing Pill.
In 2010, Tai’an Tang was listed on the Shenzhen Stock Exchange. Currently, the company mainly engages in three major businesses: traditional Chinese medicine, processing and trading of Chinese herbal medicines, and pharmaceutical e-commerce.
After its listing, Tai’an Tang’s stock had maintained revenue growth for several consecutive years, reaching its peak when *ST Tai’an’s market value exceeded billions of yuan. However, in recent years, the company has suffered losses year after year, accumulating over 4.3 billion yuan in losses in the past three years. At present, the company’s market value is less than 400 million yuan. Since March this year, the company’s stock price has continuously hit the downward limit.
As of the closing time on June 6, 2024, *ST Tai’an closed at 0.15 yuan per share, with a market value of 3.91 billion yuan.