On the evening of January 9, Huayi Electric Co., Ltd. (hereinafter referred to as "ST Huayi") received the "Decision on the Termination of the Listing of Huayi Electric Co., Ltd." from the Shanghai ** Stock Exchange on January 9, 2024, and the Shanghai Stock Exchange decided to terminate the company's ** listing. The company** will terminate its listing and delisting on January 16, which is also the first A-share delisted stock in 2024.
According to the data, *ST Huayi has been suspended since the market opened on December 26, 2023, and the stock price was 037 yuan shares, with a market capitalization of 2$8.1 billion. Huayi Electric Co., Ltd. is located in Wenzhou, Zhejiang, mainly engaged in power transmission and distribution and wind power, with high and low voltage power distribution products, wind turbines, self-developed software products, etc., and is also a veteran wind power enterprise. In 2007, Huayi Electric's backdoor listed company Sufuma landed on the Shanghai Stock Exchange, becoming the first company in Wenzhou to be listed on the main board. In 2015, the company's market value was as high as more than 15 billion yuan. As of December 25, 2023, the company's *** price is 037 yuan shares, has been below 1 yuan for 20 consecutive trading days, the total market value is only 2$8.1 billion.
Even if there is no "1 yuan delisting", *ST Huayi will not escape the fate of delisting. In November 2023, *ST Huayi received the "Prior Notice of Administrative Punishment" from the Zhejiang Securities Regulatory Bureau. According to the "Advance Notice of Administrative Punishment", there are false records in the company's annual reports from 2017 to 2022, and after calculation and adjustment, the company's net profit attributable to the parent company from 2016 to 2019 is negative, which may touch the situation of forced delisting of major violations, and the company may be forced to delist due to major violations.
At the same time, since the company's disclosure announcement in November 2019 revealed that there were vicious violations such as huge illegal guarantees and the occupation of funds by controlling shareholders, *ST Huayi's operation has also been in decline, and it has continued to lose money since 2021. Wind data shows that in the first three quarters of 2021, 2022 and 2023, *ST Huayi's net profit attributable to the parent company was -83.6 billion yuan, -48.5 billion yuan, -13.6 billion yuan.
With the continuous advancement of the registration system, the number of delisted companies will continue to grow. Among them, "1 yuan delisting" has become an important means for A-shares to implement the market-oriented delisting mechanism. At present, *ST Bolong and *ST Oceanwide have also touched the "1 yuan delisting" condition, and both have received prior notices of termination of listing from the exchange; In the past, "the first stock of Shenzhen jewelry" *ST Aidi has also locked in "1 yuan delisting". Market participants believe that *ST Huayi touched the "1 yuan delisting", which proves that the market-oriented delisting mechanism has played a role, which is the independent choice of the market to achieve the survival of the fittest, and it is also a true reflection of the company's fundamentals.
*: Jimu News.