Risk Alert! Countdown to delisting, 2024-07-02 evening announcement, the last trading day is approaching

On the evening of July 2, 4 ST companies made important announcements, 3 risk alerts, and 1 took off their hats.

1. *ST Boxin: The company's shares were subject to delisting risk warning

*ST Boxin, i.e., Jiangsu Boxin Investment Holding Co., Ltd., is a listed company mainly engaged in equipment comprehensive service business, intelligent hardware and its derivatives, and commodity trading business. The company's main products and services include wind power installation equipment, urban infrastructure equipment, its own intelligent hardware and its derivatives, the agency of other brands of intelligent terminals and hardware products, and the trading business of construction engineering materials.

This company has used a lot of names:

Recently, four people, including ST Boxin and its then-chairman Wang Wei, were publicly reprimanded by the Shanghai Stock Exchange for violating the rules of information disclosure. Specifically, the company did not accurately disclose its results in its 2023 annual results forecast, including key financial data such as net profit and net assets. These violations have seriously affected investors' judgment of the company's stock price and investment decisions. Therefore, the Shanghai Stock Exchange publicly reprimanded ST Boxin and the relevant responsible persons, and recorded this in the integrity file of the listed company.

In terms of stocks, *ST Boxin has a ticker symbol of 600083. According to the latest stock market data, the company's share price is $1.75, with a price-to-earnings ratio of a loss and a price-to-book ratio of -19.44. The company's finances are poor, with a low stock price and a relatively small market capitalization

*ST Boxin issued a stock trading risk warning announcement, the company is concerned that the company's stock price will fluctuate significantly on July 2, 2024, but the company's fundamentals have not changed, and the delisting risk warning has been implemented.

2. ST Changkang: The stock will be terminated from listing

ST Changkang, also known as Changjiang Runfa Health Industry Co., Ltd., is mainly engaged in the research and development, production and sales of pharmaceutical products. The company's main products include lyophilized powder injection, powder injection, escalator guide rail, hollow guide rail, solid guide rail, etc.

Former name:

As of July 1, 2024, ST Changkang's share price has been below $1 for 20 consecutive trading days, touching the forced delisting of trading. In accordance with the relevant provisions of the Shenzhen Stock Exchange Stock Listing Rules, the company's shares will be suspended from July 2, 2024. The Shenzhen Stock Exchange will issue a "prior notice" to the company within five trading days to terminate the listing of its shares, and the company can apply for a hearing, and after the Shenzhen Stock Exchange makes a decision to terminate the listing according to the hearing, the company's shares will enter the national small and medium-sized enterprise share transfer system for listing and transfer. In addition, ST Changkang has a huge amount of funds occupied, illegal guarantees and illegal information disclosure, which leads to the serious consequences of the company's shares being subject to other risk warnings and delisting, and the company and its controlling shareholders will face severe administrative penalties2.

In terms of the stock market, ST Changkang has a ticker symbol of SZ002435. According to the latest stock market data, the company's share price is $0.37, with a price-to-earnings ratio of a loss and a price-to-book ratio of 0.12. The company's finances are poor, with a low stock price and a relatively small market capitalization

ST Changkang announced that as of July 1, 2024, the closing price of the company's shares has been lower than 1 yuan for 20 consecutive trading days, and the company's shares will be terminated by the Shenzhen Stock Exchange. Trading in the Company's shares will be suspended from the market open on Tuesday, July 2, 2024.

3. Tai'an Retirement: The estimated last transaction date is July 4, 2024

Tai'an Retirement, namely Guangdong Tai'antang Pharmaceutical Co., Ltd., Guangdong Tai'antang Pharmaceutical Co., Ltd. is mainly engaged in drug research and development, production and sales; planting, processing and sales of Chinese herbal medicines; Pharmaceutical e-commerce and other businesses. Its ticker symbol is 002433.

The company's former name: The Shenzhen Stock Exchange has decided to terminate the listing of Tai'an Delisting and will enter the delisting period in the near future. The start date of the delisting consolidation period is June 14, 2024 and the last trading day is July 4, 2024. After the expiration of the delisting period, the shares of Tai'an will be delisted and the listing will be terminated.

In addition, Guangdong Tai'antang Pharmaceutical Co., Ltd. announced on April 7, 2024 that it had received the Decision and Civil Ruling from the Intermediate People's Court of Shantou City, Guangdong Province, and the court decided to terminate the company's pre-reorganization procedure and not accept the relevant reorganization application. The company also reminded investors that the non-operating funds occupied by the controlling shareholders of the company involved in the inability to express their opinions in 2022 have not been fully recovered, and there is significant uncertainty in the ability to continue operations, and there may be internal control deficiencies and other reasons that the auditor cannot express an opinion on the company's 2023 annual financial report, and there is a risk of termination of listing. The company's shares are still in the status of "delisting risk alert" and "other risk alert".

Tai'an announced that the starting date of the company's shares entering the delisting period is June 14, 2024, the delisting period is 15 trading days, and the last trading date is expected to be July 4, 2024. The company's shares will be traded for 15 trading days during the delisting period, and the listing will be terminated upon the expiration of the trading period.

ST Kangmei: Withdraw other risk warnings, and the stock will be suspended for one day

ST Kangmei, i.e. Kangmei Pharmaceutical Co., Ltd., is mainly engaged in the production and sales of traditional Chinese medicine decoction pieces and chemicals, as well as the sales of purchased products and the trade of Chinese herbal medicines. The company's main products include Chinese medicine decoction pieces, Chinese medicine formula granules, Chinese patent medicines, Western medicines, food and health foods.

Kangmei Pharmaceutical recently announced that it will suspend trading for one day on July 3, 2024, resume trading on July 4, and withdraw other risk warnings. After the revocation of other risk warnings, the company's shares will be transferred out of the risk alert board trading, the daily rise and fall limit of the stock price is changed from 5% to 10%, the company's former name: after the resumption of trading on July 4, the company's stock abbreviation was changed from "ST Kangmei" to "the stock code is still "600518".

This marks that Kangmei Pharmaceutical has finally "taken off its hat" after 5 years of ST. The company said in the announcement that the relevant circumstances of the previous implementation of "other risk warnings" due to internal control issues have been eliminated.

Kangmei Pharmaceutical was once "hatted" for huge financial fraud. In 2018, Kangmei Pharmaceutical was investigated by the China Securities Regulatory Commission for suspected financial fraud. According to the investigation results, from 2016 to 2018, the actual controller and chairman of Kangmei Pharmaceutical Co., Ltd. falsely issued and tampered with VAT invoices and forged bank documents, accumulatively inflating monetary funds by 88.7 billion yuan, inflating income by 27.5 billion yuan, and inflating profits by 3.9 billion yuan. In view of Kangmei Pharmaceutical's financial fraud seriously violating the information disclosure regulations, the Shanghai Stock Exchange implemented a special treatment of "other risk warnings" on the company's shares in May 2019, and the stock abbreviation was changed from "Kangmei Pharmaceutical" to "ST Kangmei". After Kangmei Pharmaceutical's huge financial fraud was discovered, the company also fell from the altar of pharmaceutical "white horse stocks" in the A-share market, and the stock price plummeted, falling into endless lawsuits, and was once on the verge of delisting. Until the announcement of "taking off the hat", this also means that the company has come out of the darkest moment of the counterfeiting storm in the secondary market, and Kangmei Pharmaceutical has been "resurrected" as it wishes.

From the perspective of performance, Kangmei Pharmaceutical has shown positive development, and has now achieved a turnaround in net profit. According to the 2023 annual report and the first quarter report of 2024, the company's operating income in 2023 will be 4.874 billion yuan, a year-on-year increase of 16.6%; The net profit attributable to the parent company was 103 million yuan, turning losses into profits. The operating income in the first quarter of 2024 was 1.201 billion yuan, a year-on-year increase of 5.01%; The net profit attributable to the parent company was 7.4713 million yuan, a year-on-year turnaround. However, despite the year-on-year turnaround of the net profit attributable to the parent company, Kangmei Pharmaceutical was still unable to reverse the continuous loss in terms of deducting non-net profit. From 2019 to 2023, Kangmei Pharmaceutical's non-net profit will be in a state of huge loss for 5 consecutive years, with -4.865 billion yuan, -30.586 billion yuan, -7.968 billion yuan, -1.509 billion yuan, and -753 million yuan respectively. In the first quarter of 2024, the non-net profit after deduction will still be a loss of 58.4765 million yuan2.

In the evening, ST Kangmei announced that the company's shares will be suspended for one day on July 3, and trading will resume on July 4 and other risk warnings will be revoked. After the cancellation of other risk warnings, the company's shares were transferred out of the risk alert board for trading, the daily rise and fall limit of the stock price was changed from 5% to 10%, the company's stock abbreviation was changed from "ST Kangmei" to "Kangmei Pharmaceutical", and the stock code was still "600518".