On July 23rd, Shenzhen Tiandi (Group) Co., Ltd. (ST Shentian) announced that due to its market value remaining below 300 million yuan (RMB) for 19 consecutive trading days, the company’s stock faces the risk of being delisted.
In an announcement titled “The Eleventh Risk Alert Announcement about the Possible Delisting of Company Stocks,” ST Shentian stated that from June 27th to the present day, the closing market value of shares of Shenzhen Tiandi Co., Ltd. has been below 300 million yuan for 19 consecutive trading days. In accordance with the Shenzhen Stock Exchange Listing Rules (2024 Revision) Article 9.2.4, this risk alert announcement was disclosed. If the total market value of the company’s stock remains below 300 million yuan for twenty consecutive trading days, there is a risk of delisting.
On July 23rd, *ST Shentian once again hit the limit down, with the company’s latest market value at 2.51 billion yuan at the close of trading. Despite any potential limit-up on the next trading day, according to “First Finance,” the company’s market value is unlikely to exceed the 300 million yuan threshold, thus locking in the market value delisting situation, making ST Shentian the first A-share stock to face market value delisting.
At the end of 2020, new delisting regulations were introduced in A-shares, introducing the indicator of “consecutive 20 trading days with daily closing market value below 300 million yuan” for market value delisting. However, in the following years, most of the delisted companies were based on “par value delisting,” and no company had triggered the market value delisting indicator.
By the end of April this year, the Shanghai and Shenzhen Stock Exchanges revised and improved relevant delisting rules. The market value delisting standard for Main Board A-shares (including A+B shares) companies will be raised from 300 million yuan to 500 million yuan starting from October 30th, with a transitional period from April to October where the market value delisting standard will remain at 300 million yuan. The market value delisting standard for B-shares, ChiNext Board, and the Science and Technology Innovation Board companies will be maintained at 300 million yuan.
In another announcement issued by ST Shentian on July 23rd regarding the progress and risk alerts related to the implementation of other risk warnings in trading company stocks, the controlling shareholder Guangdong Junhao Equity Investment Holdings Co., Ltd. has been found to have misused non-operating funds, with an amount reaching 137 million yuan, accounting for 685% of the company’s most recently audited net assets.
ST Shentian was listed on the Shenzhen Stock Exchange for trading on April 29, 1993, with its main business in ready-mixed concrete. Starting from 2020, *ST Shentian began to incur losses, with a total accumulated loss of nearly 500 million yuan over the past four years. This year, *ST Shentian remains in a loss-making position, as per the performance forecast for the first half of 2024, the company’s net profit attributable to shareholders for the first half of the year is expected to be between a loss of 80 million to 100 million yuan, a decrease of 59.69% to 99.62% compared to the same period last year.
According to “First Finance” on July 23rd, more than a hundred listed companies in A-shares have been issued risk warnings this year, leading to an increase in the types of delistings and the number of delisted companies. According to the latest data from the Wind data service provider, as of July 23rd, apart from *ST Shentian, there are 9 other stocks in A-shares with a total market value below 500 million yuan, including *ST Meishang, *ST Meiji, and *ST Boxin, amongst others.