In the face of the continuous decline in the stock price, Ye Ji, chairman of Shanzi Hi-Tech, caused 2 price limits with a letter to shareholders.
Since July 22, Shanzi Hi-Tech's share price has fallen for four consecutive trading days. On July 24, the company's closing price was 0.90 yuan per share, and the closing price was lower than 1 yuan for the first time.
On July 25, Shanzi Hi-Tech reminded of the risk of delisting for the first time.
On July 26, although the opening rose 8.64%, it still failed to pull the stock price above the red line of 1 yuan, and the closing price fell to 0.86 yuan per share, approaching the edge of delisting at face value.
At the end of last week, an article entitled "A Letter to All Shareholders: Insist on Doing the Difficult but Right Thing" was published on Shanzi High-tech Official Weibo.
Chairman Ye Ji expressed his deep apologies to investors and said that he had applied to the board of directors to suspend personal salaries until the stock price recovered to more than 1.6 yuan per share. In addition to the share buyback, we will take a full range of measures to stabilize the stock price to a safe range.
After the release of the apology letter, Shanzi Hi-Tech not only skyrocketed in popularity, but also ushered in a long-lost price limit.
The former Ningbo land king "sinking history"
According to public information, the predecessor of Shanzi Hi-Tech is Yinyi shares, which was established in 1998 and listed on the Shenzhen Stock Exchange in 2011.
As a leading real estate enterprise deeply involved in Ningbo, Yinyi shares are quite famous in the field of real estate, and since 2004, the company has been listed among the top 100 real estate enterprises in China for 15 consecutive years. Xiong Xuqiang, the founder of Yinyi Group and the former actual controller of Yinyi shares, was once known as the richest man in Ningbo.
2016 is an important turning point in the development of Yinyi shares. At that time, the company determined the two-wheel drive development pattern of "real estate + high-end manufacturing", and took the automobile manufacturing industry as a new growth engine.
Soon after, Yinyi Co., Ltd. selected Ningbo Haosheng and Dongfang Yisheng as the primary targets of mergers and acquisitions. Among them, Ningbo Haosheng belongs to ARC Group and is the world's second largest independent manufacturer of automotive airbag inflators. Dongfang Yisheng belongs to the Punch Group, which is a world-renowned independent manufacturer of automotive automatic transmissions.
It is reported that the acquisition amount of the above two companies exceeded 10 billion yuan.
However, the highly-anticipated fuel vehicle parts business not only did not become the company's second growth curve, but instead put the company in a difficult situation.
On the one hand, large-scale mergers and acquisitions have brought great pressure to the company's capital chain; On the other hand, the revenue of the fuel vehicle parts business was far less than expected, and the real estate industry accelerated its decline.
In 2018, a crisis broke out in Yinyi shares.
Complete one's misery. In 2019, the major shareholder of Yinyi shares was found to have illegally appropriated the funds of the listed company, coupled with the debt thunderstorm, the company faced a serious financial crisis and was forced to go bankrupt and reorganize.
In November 2022, Yinyi announced the completion of the implementation of the reorganization plan. Jiaxing Zihe Jinxin Equity Investment Partnership (Limited Partnership) became the reorganization investor of Yinyi shares through an investment of 3.2 billion yuan, and Ye Ji became the new actual controller of the company and "changed his name and surname".
In 2023, the company will officially change its name to Shanzi Hi-Tech.
In March this year, Shanzi Hi-Tech announced that due to difficulties in the operation of the real estate business, the company intends to publicly list and transfer the equity and debt assets related to the company's real estate business through property rights trading institutions. After 3 listings, it was finally won by Jiangsu Lianyungang enterprise Dali Honglin.
On June 29, Shanzi Hi-Tech announced that it had sold 100% of the equity of Yinyi Real Estate and the receivables of the company and its holding subsidiaries on the divested enterprise at a price of 601 million yuan. At this point, Shanzi Hi-Tech officially bid farewell to the real estate industry that has been deeply cultivated for 30 years.
In the view of industry analysts, the failure of Yinyi shares is not only a problem of individual enterprises, but also exposes the common problems that many enterprises may encounter in the process of transformation. A once brilliant real estate company has finally pushed itself to the edge of the cliff in a series of transformation decisions of cross-border mergers and acquisitions.
Listed companies launched the "1 yuan defense war"
In fact, Shanzi Hi-Tech is not alone. Since the issuance of the new "National Nine Articles" and the new delisting regulations, the mandatory delisting has been strengthened, and the "1 yuan delisting" has become more and more normalized.
Flush data shows that as of the close of trading on July 30, there were 479 companies in the A-share Shanghai and Shenzhen markets with stock prices of 3 yuan or below, accounting for nearly one-tenth of the total number of listed companies.
Among them, there are 24 listed companies whose stock prices are $1 or below, and some companies have reached the par value delisting rules and locked in for delisting; In addition, there are 74 listed companies between 1 yuan / share and 1.5 yuan / share.
From the perspective of industry distribution, among the 479 listed companies with a share price of 3 yuan or less, there are as many as 51 listed companies in the real estate industry, accounting for more than 10%; 38 listed companies in the building decoration category; There are 33 listed companies in the machinery and equipment category.
In the first half of 2024, as the deep adjustment of the industry continues, the stock price performance of the real estate sector shows a certain degree of volatility, and the stock prices of some large real estate companies such as Vanke, Greentown, and Binjiang have also experienced a sharp decline in the first half of the year.
In terms of geographical distribution, Guangdong Province tops the list, with as many as 70; Zhejiang Province ranked second, reaching 45; Jiangsu and Beijing have 43 and 41 respectively.
In the face of this grim situation, many listed companies have taken self-rescue measures and started the "1 yuan defense war" of stock prices. At present, it seems that there are three main ways: shareholders increase their holdings; Stimulate share prices through share buybacks by companies; The fixed increase is injected into the assets of the controlling shareholder to enhance the value of the company.
On July 16, Xinhu Zhongbao disclosed that Quzhou Zhibao, the company's largest shareholder, intends to increase its holdings of the company's shares through centralized bidding in the Shanghai Stock Exchange trading system within 6 months from July 16, with an increase of no less than 50 million yuan and no more than 100 million yuan, and the increase price is not higher than 2 yuan per share.
On July 25, Yatai Group closed at 0.97 yuan per share, closing below 1 yuan for 2 consecutive days. In the past month, the company's stock price has repeatedly jumped up and down the "1 yuan red line". In late June this year, when the share price of Yatai Group fell below 1 yuan for the first time and continued to fall, the major shareholders of state-owned assets urgently increased their holdings and pulled the stock price back to more than 1 yuan.
In the view of industry analysts, the increase in holdings by major shareholders is generally worthy of affirmation, which not only helps to clean up the "zombie shell" and "black sheep" in the market, but also promotes self-examination and self-correction of listed companies. For the company, by increasing its holdings and repurchases, restructuring and reorganization, etc., it can increase the stock price in the short term, avoid delisting, and gain time and opportunities to improve its operating conditions.