ST** is a special category in China, which usually refers to listed companies that have lost money for many years. Investors should understand the meaning, reasons and risks of ST to avoid unnecessary investment risks.
1. What is st**?
ST** refers to listed companies that have lost money for many years, and after special treatment, they need to add the "ST" logo. Here are some of the features of ST**:
1.The meaning of the ST logo: ST is the abbreviation of Special Treatment, which is added in front of *** to indicate that the company's profitability is poor and there is a risk of delisting.
2.Delisting Risk Warning: The ST logo was introduced to alert investors to the risks that indicate the company's financial condition is not in good shape and that it may be at risk of delisting.
3.Rectification requirements: Once a listed company is marked as ST, it needs to formulate a rectification plan to enhance the company's value and profitability by improving its financial and operating conditions.
Second, under what circumstances will it be st
The latest delisting regulations have been revised and improved mainly in terms of financial delisting indicators, including:
1. The delisting indicator of "loss for three consecutive years" was cancelled and changed to the dual indicator of "negative net profit for two consecutive years and operating income less than 100 million". This means that even if the company loses money for two consecutive years, as long as its operating income can reach 100 million yuan, it will not trigger delisting.
2. For the combination of "net profit + operating income", when calculating net profit, only "100% of the ratio of operating income in the current fiscal year and the same period of the previous year" is deducted. This means that if the company's operating income for the current year is lower than the same period last year, but still reaches more than 100 million yuan, the delisting will not be triggered.
3. For the delisting indicator of "net assets index", the original "negative net assets at the end of consecutive bienniums" is revised to "negative net assets at the end of consecutive bienniums or negative net assets at the end of the latest period and operating income is less than 100 million". This means that if the company's net assets are negative at the end of two consecutive years, but the operating income can reach more than 100 million yuan, it will not trigger delisting.
4. For the deduction of business income, the deduction items of "business income unrelated to the main business and income without commercial substance" are cancelled. This means that it will no longer be allowed for a company to cover its losses by selling non-core business income, such as selling assets.
5. The index of "standardized delisting" has been added, including: major violations of information disclosure, major violations of production and operation, serious deficiencies in corporate governance, serious lack of ability to continue operations, and a substantial or long-term decline in stock price. These indicators are designed to promote the company's standardized operation, improve the quality of information disclosure and maintain market stability.
6. The conditions for resumption of listing have also been revised and improved, requiring companies applying for resumption of listing to meet the conditions that the net profit before and after deducting non-recurring profits and losses in the past three fiscal years is positive and the cumulative amount exceeds 30 million yuan. This is conducive to improving the quality of reinstated listed companies and preventing some companies from resuming their listing through special means.
7. In terms of the procedures for delisting, the suspension of listing and the resumption of listing have been cancelled, and only the two methods of voluntary delisting and compulsory delisting have been retained. At the same time, the procedures for compulsory delisting have also been simplified, and only a single indicator such as "negative net profit and operating income of less than 100 million yuan for two consecutive years" or "negative net assets" can be implemented.
3. Why is it not recommended to buy ST
*Investors should be cautious about buying ST**, here are some of the reasons::
1.High Risk: ST** is usually marked as ST due to the company's continuous years of losses, its financial position is poor, and the investment risk is higher.
2.Uncertainty: ST companies are in poor financial condition, operating difficulties, how to improve performance and get out of the predicament is uncertain, and it is difficult for investors to develop in the future.
3.Limited investment value: ST** has a low investment value and may limit investment returns under the pressure of delisting risk.
4.Susceptible to market sentiment: Due to the delisting risk of ST**, investors are more likely to be swayed by market sentiment, resulting in unstable trading behavior.
Fourth, how to avoid the purchase becoming st**?
*Investors should pay attention to the following points to avoid the risk of buying into ST**:
1.Pay attention to the financial status of listed companies on a regular basis: pay close attention to the financial statements of listed companies, including profitability, assets and liabilities, etc., to avoid buying consecutive losses.
2.Pay attention to the company's operating conditions: pay attention to the operating conditions and market prospects of listed companies, and understand the company's competitiveness and development potential.
3.Diversify your investment: Rather than pooling your money in one company, diversification can reduce the risk of a single company.
4.Proactive access to information: Obtain the company's announcements and information in a timely manner, and understand the company's improvement and financial status in order to make informed investment decisions.
Summary:
The length of time a ST loss will be marked as ST depends on the company's specific circumstances and the requirements of regulatory policies. In the process of investment, investors should choose carefully, avoid investment risks, maintain a rational investment concept, invest according to their personal risk tolerance and investment goals, and avoid blindly following the trend or gambling mentality. Most importantly, investors should always maintain risk awareness, pay attention to market dynamics, and adjust their investment strategies in a timely manner to protect their investment interests.