Zhejiang Aikang New Energy Technology Co., Ltd. (ST Aikang) announced on the evening of June 21 that the Shenzhen Stock Exchange intends to terminate the company’s stock listing. Currently, more than 270,000 shareholders of ST Aikang are facing the dilemma of losing all their investment, especially with the reality that the actual controller of the company has already cashed out 2 billion yuan, sparking outrage among the public.
According to the announcement by ST Aikang, the company received a “Pre-warning Letter” issued by the Shenzhen Stock Exchange recently, stating that the company’s stock price has been trading below 1 yuan for twenty consecutive trading days from May 21 to June 18 through the Shenzhen Stock Exchange trading system, which triggered the condition for the stock to be delisted.
Faced with the prospect of losing their investment, shareholders have united to seek justice, only to find no avenue for their complaints.
A Chinese-Canadian named Wang Yi revealed to Epoch Times that her mother, Zheng Chaomin, settled in Chongqing, China in 2019 and invested her pension money in stocks, buying 70,000 shares of ST Jiangsu Yangguang (600220) and 16,000 shares of ST Aikang Technology (002610) respectively.
Later, her mother, along with her uncle and aunt who are also overseas Chinese, purchased shares of ST Jiangsu Yangguang (600220) and Aikang Technology (002610) worth one million yuan in 2019. On June 6, 2024, they were notified that the stocks of these two companies might be suspended from trading. Consequently, due to the delisting of ST Jiangsu Yangguang (600220) and ST Aikang Technology (002610), Zheng Chaomin, her brother Zheng Chaozhong, and her sister Zheng Chaowei suffered losses totaling nearly one million yuan.
Currently, Wang Yi’s mother, Zheng Chaomin (71 years old), is living alone in Chongqing, while her brother Zheng Chaozhong (76 years old) and sister Zheng Chaowei (74 years old) each suffer from health issues such as high blood pressure and cerebral hemorrhage.
Wang Yi has urged the China Securities Regulatory Commission to cooperate with the Chongqing Securities Regulatory Bureau to provide multi-channel support for investors who have suffered losses due to the delisting of ST Yangguang and ST Aikang.
Other investors have taken to the internet to report to the central inspection team that the China Securities Regulatory Commission and Chairman Wu Qing have been negligent, incompetent, detached from the people, and passively corrupt.
The report believes that in the recent market turmoil in China, nearly a hundred stocks are facing delisting, with many companies rushing to delist under the current incomplete investor protection system in the securities market, causing investors to feel like they are being “harvested.” The Securities Regulatory Commission has become a “house-searching committee,” turning a blind eye to the overwhelming criticisms.
The report points out violations listed by mainland media “First Financial.”
The report alleges that the China Securities Regulatory Commission has done nothing throughout the process, allowing Aikang Technology to be delisted without addressing the issues exposed. As the offices are deserted and businesses are shuttered, they show no concern and turn a blind eye while the hard-earned money of numerous investors goes up in smoke. Many investors have been ruined by stock trading.
The report asserts that the disclosures made by Aikang Technology in its announcements have misled investors into believing that the company is promising and worth investing in, with the current situation not caused by investors themselves. They appeal to the State Council to thoroughly investigate Aikang Technology, especially its financial status since its listing, to ensure justice for the 280,000 innocent investors who must be compensated before delisting!!!
On June 12, ST Aikang announced that the company and the actual controller, Zou Chenghui, are suspected of illegal information disclosure and are being investigated. As of the closing date, ST Aikang’s closing price has been below 1 yuan for 16 consecutive trading days. The solar panel star-listed company is now facing “face-value delisting.”
According to Huaxia Times, the actual controller of ST Aikang has already cashed out and exited early. The controller’s family has repeatedly reduced their holdings, holding only 6.4% through four companies including Aikang Group as of the end of March 2024, with the remaining stocks mostly pledged. Since Aikang’s listing in 2011, the controller’s family collectively held 43.63% of the company’s shares at the outset, with continuous reductions from 2017 to 2022 totaling 627 million shares and cashing out 2.054 billion yuan.
As of May 20, more than 276,000 shareholders still hold ST Aikang, making it the stock with the most shareholders in the ST sector.
Post News noted that for investors in ST Aikang, exiting may be increasingly difficult.
In the A-share market, many companies engage in financial fraud to go public and boost stock prices, with delisting allowing these major shareholders to exit unscathed.
In response, netizens expressed their opinions with “Yunxing” stating: “Forcing them to delist is like allowing them to safely leave the market with the hard-earned money of shareholders. This is their dream. Only by freezing their illegal income through legal means, returning the hard-earned money to shareholders, and bringing those involved in illegal listings to justice, can we truly uphold fairness and justice in the capital market.”
As of June 21 at 15:00 Beijing time, ST Aikang reported a price of 0.37 yuan per share, down 0.17%, with a market value of 1.657 billion yuan.