China Fund News reporter Wen Xi
The 2023 annual report has not yet been disclosed, and the delisting "guillotine" has hung over its head.
As of June 28, two listed companies of Dongxu Group, Dongxu Optoelectronics and Dongxu Blue Sky, Puli Pharmaceutical, Weichuang Co., Ltd., and ST Huatie, have not disclosed their 2023 annual reports.
If the 2023 annual report is not disclosed within the next five trading days, the above-mentioned companies will be subject to a delisting risk warning. If the company does not disclose its annual report within two months, its shares will be delisted.
It is worth noting that the reasons for the delay in the disclosure of the annual reports of these listed companies are different, some have not completed the financial verification, and some have failed to obtain the audit approval. The above five companies have previously received the notice of filing of the case from the CSRC.
Time is running out
At the end of April this year, at the end of the annual report period, a total of 7 listed companies did not disclose their 2023 annual reports, in addition to the above 5 listed companies, *ST Yuebo and *ST Sansheng have announced their delisting.
Nearly 2 months have passed, and the 2023 annual reports of five listed companies, Dongxu Optoelectronics, Dongxu Blue Sky, Puli Pharmaceutical, Weichuang Co., Ltd., and ST Huatie, are still "difficult to deliver". In the past two months, the shares of the above companies have been suspended.
According to the regulations, if the above-mentioned companies fail to disclose the true, accurate and complete 2023 annual report guaranteed by more than half of the directors within two months after the suspension of trading (until July 5, 2024), the company's shares shall be subject to a delisting risk warning on the next trading day after the expiration of the two-month suspension.
According to the regulations, if the above-mentioned companies fail to disclose the true, accurate and complete 2023 annual report guaranteed by more than half of the directors within two months from the date of the implementation of the delisting risk warning, the listing of the listed company's shares and convertible bonds will be terminated simultaneously.
In other words, time is running out for the aforementioned companies.
Financial verification is still ongoing
As for the reason for the "difficult birth" of the annual report, the two companies of Dongxu - Dongxu Blue Sky and Dongxu Optoelectronics are consistent, that is, they failed to complete the verification and verification procedures due to the financial information and other important matters in the annual report, and failed to complete the preparation of the 2023 annual report before the disclosure date.
According to the latest disclosure of the two companies, the verification and verification of relevant important matters related to the company's annual report, financial information and other related matters are still in progress, and the preparation of regular reports has not yet been completed.
"The board of directors and management of the company are making every effort to promote the preparation of the 2023 annual report, strengthen the communication with all relevant parties in the preparation of the annual report, and strive to complete the preparation and review of the periodic report as soon as possible." This is the common rhetoric of both companies.
In fact, the two companies of Dongxu have long been mired in the "quagmire". Combined with the previously announced performance forecast, the total loss of Dongxu Blue Sky and Dongxu Optoelectronics in 2023 may be as much as 1.6 billion yuan.
According to public information, Tunghsu Bluesky's main business is new energy business and ecological environmental protection business. As of the first half of 2023, its 57 self-sustaining photovoltaic power stations have a grid-connected installed capacity of about 1GW, and nearly 2GW of self-operation and maintenance and agency operation and maintenance projects. According to the data of the 2023 semi-annual report, the company's new energy business revenue accounted for 86.33% during the reporting period, making it the largest main business.
The main business of Dongxu Optoelectronics is optoelectronic display manufacturing business, new energy vehicle business and construction and installation engineering business. Among them, the optoelectronic display manufacturing business accounted for 79.56% of the revenue in the first half of 2023.
Whether it is Dongxu Blue Sky or Dongxu Optoelectronics, they have been losing money for five consecutive years (including 2023). From 2019 to 2023, Tunghsu Blue Sky and Tunghsu Optoelectronics have accumulated losses of more than 13.3 billion yuan. Dongxu Optoelectronics is a "big loss-maker", with a loss of 10.3 billion yuan in five years.
It has not yet passed the audit institution level
In contrast, the "difficult birth" of the annual reports of Puli Pharmaceutical and Weichuang is related to the audit institutions.
Among them, Puli Pharmaceutical, which is wearing the "concept of weight loss", previously said that the Hainan Securities Regulatory Bureau found that the company's 2021 and 2022 annual reports on the disclosure of operating income, profits and other financial information were inaccurate, and required the company to conduct a self-examination on the authenticity and accuracy of financial information such as operating income and profits in the relevant years.
"Because the company's self-inspection still takes a certain amount of time and may involve the correction of accounting errors, the impact of the correction of accounting errors on the identification of annual report data is uncertain." Puli Pharmaceutical previously said that because the self-inspection and rectification have not yet ended, the financial data for 2021 and 2022 cannot be determined, and the company is not yet able to provide accurate pre-trial financial statements for the opening of 2023 to the auditors of the 2023 annual report.
According to the latest disclosure of Puli Pharmaceutical, as of June 28, the company's self-inspection and rectification work is still in progress. It is worth noting that since the listing of Puli Pharmaceutical in March 2017, Tianjian Certified Public Accountants has been serving as its auditor and has issued standard unqualified audit reports. But just over 20 days before the disclosure of the annual report, the company suddenly announced a change in the signing accountant.
Puli Pharma said that there is a risk that the company will make material accounting error corrections to the financial data in its periodic reports for 2021, 2022 and 2023.
The 2023 annual report of Weichuang Co., Ltd. could not be disclosed on time because it was not audited.
Interestingly, in mid-to-late December last year, Weichuang Co., Ltd. "revealed" that 1.33 billion yuan on the company's account had been taken away by the actual controller of Xiling Energy, the company's proposed acquirer, and it has not been returned. Due to the whereabouts of this huge amount of funds, the audit committee of the board of directors of Weichuang Co., Ltd. failed to review and approve the company's 2023 annual financial report and internal control report by a majority of the company.
Weichuang said that the company is actively communicating with the audit committee, annual audit accountants and other relevant parties, coordinating the company's various departments and external units to fully cooperate with the rectification and reform, and has reported to the public security organ and accepted the matter of 1.33 billion funds being transferred.
The resignation of the INED and the change of the audit institution
ST Huatie's annual report "no-show" stems from the efforts of independent directors. The company announced that it was originally scheduled to disclose the 2023 annual report on April 30, but due to the approaching statutory disclosure date, some information could not be verified and clarified and could not be disclosed within the statutory period.
Looking back at the announcement disclosed by the company in the early stage, the independent directors have already issued a letter of supervision on the company's related issues, urging the company to rectify the violations and do a good job in the annual report.
However, as of April 29 this year, the controlling shareholders of ST Huatie and other related parties have returned about 110 million yuan of occupied funds (including 105 million yuan of principal and 4.8957 million yuan of interest), and the balance that has not yet been returned is 1.281 billion yuan (including 1.159 billion yuan of principal balance and 122 million yuan of interest). The rectification of its capital occupation problem did not meet expectations, and there was still a non-operating capital outflow from related parties.
On June 14, ST Huatie received the resignation reports submitted by independent directors Sun Xiyun and Li Ruichun. On the same day, the company announced that it planned to change its accounting firm, from the original Dahua Certified Public Accountants to Yanhuang Certified Public Accountants.
Editor: Captain
Review: Muyu