Reporter Liu Zhao.
On January 10, *ST Huayi announced that because the company's daily price was lower than 1 yuan for 20 consecutive trading days, it belonged to the ** termination of listing stipulated in the "Listing Rules". After deliberation by the Listing Review Committee of the Shanghai ** Stock Exchange, it was decided to terminate the listing of the company, and the company will terminate the listing and delisting on January 16, 2024. *After the termination of the listing, ST Huayi will enter the National Small and Medium-sized Enterprise Share Transfer System Co., Ltd. to rely on the original ** company agency share transfer system to establish and manage the two network companies and delisted companies for listing and transfer.
Since December 26, 2023, *ST Huayi** has been suspended, and the company's stock price was 0$37 shares.
ST Huayi focuses on the two main businesses of power transmission and distribution and wind power, and actively develops international and general contracting businesses related to the main business. The products include high and low voltage power distribution products, wind turbines, self-developed software products, etc. In 2007, *ST Huayi landed on the Shanghai Stock Exchange through Sufoma, becoming the first company in Wenzhou to be listed on the main board.
*ST Huayi has been a financial fraud for 6 consecutive years. On November 21, 2023, *ST Huayi received the "Advance Notice of Administrative Punishment" issued by the Zhejiang Supervision Bureau of the China Securities Regulatory Commission, showing that in 2017, *ST Huayi's wholly-owned subsidiary, Huayi Wind Energy, hereinafter referred to as Huayi Wind Energy) recognized revenue from the sales of wind turbines that did not meet the conditions for revenue recognition, and carried forward the corresponding costs, resulting in* The consolidated financial statements of ST Huayi's 2017 annual report are suspected of inflating operating income and accounts receivable, and overstating the provision for bad debts of accounts receivable and inflating total profits. *The accounts receivable formed by ST Huayi's inflated wind turbine sales revenue in 2017 have been in existence and provision for bad debts has been made every year, resulting in a total inflated profit in the annual report from 2018 to 2022. As a result of the above-mentioned events, there were false records in *ST Huayi's annual reports for 6 consecutive years from 2017 to 2022.
In addition to financial fraud, *ST Huayi also has problems such as the company's funds being illegally occupied by related parties and being riddled with lawsuits. According to the "Administrative Penalty Decision" and the "Market Ban Decision" issued by the Zhejiang Securities Regulatory Bureau, *ST Huayi and related parties have failed to disclose the occupation of non-operating funds of related parties, failed to disclose related party guarantees as required, and failed to disclose illegal use of raised funds and other illegal facts. The cumulative amount of non-operating capital occupation by the company's related parties reached 23200 million yuan, balance 114.1 billion yuan. In view of the above facts, the Zhejiang Securities Regulatory Bureau issued warnings and fines to *ST Huayi and 19 senior executives at the time.
As of December 22, 2023, the above-mentioned illegal appropriation of funds has not been resolved. At present, the balance of funds occupied by *ST Huayi's original controlling shareholder, Huayi Group, and its affiliates is 193.4 billion yuan, and the balance of illegal guarantees is 1$8.1 billion. In addition, since Huayi Group is currently in the stage of bankruptcy liquidation and has completed the distribution of property in accordance with the Implementation Plan of the Bankruptcy Distribution Plan, there will be risks that it will be difficult to resolve a series of problems such as the company's capital occupation and illegal guaranteesAt the same time, with the implementation of the guarantee case, there will be a risk of further deterioration of the company's capital liquidity.
In addition, *ST Huayi is also facing a number of judicial lawsuits, according to the announcement issued by the company on December 23, 2023, Huayi Wind Energy was sued by Chongqing Gearbox Co., Ltd. to recover the arrears10.1 billion yuan, in addition, the judicial disputes between *ST Huayi and Huishang Bank Co., Ltd. *** Ningbo Branch, Bank of China Co., Ltd. *** Yueqing City Branch and other companies are also in different stages of case progress.
According to the third quarter of 2023 report previously released by *ST Huayi, the company achieved operating income of 24.5 billion yuan, to achieve a net profit attributable to the parent company -13.6 billion yuan, equity attributable to shareholders of the parent company was -21.3 billion yuan, already facing the problem of insolvency.
* |Baotu network production |Zhang Xin Review |Edited by Li Chunlian |Caishandan final review |Ma Fangye