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China Fund News reporter Nan Shen

On the afternoon of July 21,Guanghui Auto and *ST TianchengBoth companies issued announcements and received Prior Notice of Intended Termination of Company Stock ListingThe delisting of Guanghui Auto also included its convertible bonds. The reason for the delisting of the two companies was that the daily closing price of the stock was less than 1 yuan for 20 consecutive trading days.

According to the procedures, in theory, both Guanghui Auto and *ST Tiancheng have the opportunity to apply for a hearing and can submit a written hearing application to the Shanghai Stock Exchange within 5 trading days after receiving the delisting notice.

At the same time as issuing the advance notice, the Shanghai Stock Exchange also issuedRegulatory work letter, requiring it to hire a lead underwriter as soon as possible to make specific arrangements and information disclosure for the company's stocks (and convertible bonds) to enter the National Equities Exchange and Quotations, and ensure that the stocks (and convertible bonds) can be listed for transfer within 45 trading days from the date of delisting.

As of the end of the first quarter of this year, Guanghui Auto and *ST Tiancheng had 106,500 and 26,500 shareholders respectively, and the balance of Guanghui convertible bonds was still 2.882 billion yuan before it was suspended on July 18.

Guanghui Auto and Guanghui Convertible Bonds to be delisted

According to the Shanghai Stock Exchange's prior notice, from June 20 to July 17, 2024, the daily closing price of Guanghui Auto's stock was lower than 1 yuan for 20 consecutive trading days. According to Article 9.2.1 and Article 9.1.17 of the "Shanghai Stock Exchange Stock Listing Rules (Revised in April 2024)" (hereinafter referred to as the "Stock Listing Rules"), the company's stocks and convertible corporate bonds have met the conditions for termination of listing.

The Shanghai Stock Exchange will make a decision to terminate the listing of Guanghui Automobile's shares and convertible bonds in accordance with the relevant provisions of the "Stock Listing Rules". If the company applies for a hearing, it should submit a written hearing application to the Shanghai Stock Exchange within 5 trading days after receiving the notice.

On July 18, Guanghui Auto's stock and convertible bonds were suspended. On the day before the suspension (July 17), Guanghui Auto and Guanghui Convertible Bonds both hit the limit down in the bidding. Guanghui Auto's orders exceeded 16 million lots, with an amount exceeding 1.2 billion yuan, and Guanghui Convertible Bonds' orders exceeded 200 million yuan. As of the close of July 17, Guanghui Auto's stock price was 0.78 yuan per share, and Guanghui Convertible Bonds' price was 45.767 yuan.

It is worth mentioning that before the suspension, Guanghui Auto's market value was still 6.466 billion yuan, making it the company with the highest market value in history when delisting at par value, and Guanghui Convertible Bond will become the first high-rated convertible bond to be delisted because the underlying stock is lower than the par value. The 2023 annual report shows that Guanghui Auto's operating income is still as high as 138 billion yuan, and its net profit is not a loss.

Public information shows that Guanghui Auto is China's largest passenger car dealership and service group, China's largest luxury passenger car dealership and service group, the largest passenger car financing and leasing provider among auto dealers, and the largest second-hand car transaction agency service entity group among auto dealers. The actual controller of the company is Sun Guangxin, the former "richest man in Xinjiang", who holds 32.93% of Guanghui Auto's shares through Guanghui Group.

Before the company was delisted at a price close to 1 yuan, Guanghui Auto once tried to "save" the company. The controlling shareholder and directors, supervisors and senior managers all proposed plans to increase their holdings. On July 11, the company's controlling shareholder Guanghui Group also signed an "Equity Cooperation Framework Agreement" with Jinzheng Technology in an attempt to introduce powerful shareholders, but ultimately failed to avoid delisting.

*ST Tiancheng plans to delist

*ST Tiancheng issued an announcement that the company received the "Preliminary Notice on the Proposed Termination of the Listing of Guizhou Changzheng Tiancheng Holding Co., Ltd.'s Shares" issued by the Shanghai Stock Exchange on July 21 (Shanghai Stock Exchange Official Letter [2024] No. 0996).

The notice shows that from June 24 to July 19, 2024, the daily closing price of *ST Tiancheng stock was lower than 1 yuan for 20 consecutive trading days. According to Article 9.2.1 of the Shanghai Stock Exchange's "Stock Listing Rules", the company's stock has reached the conditions for delisting.

The Shanghai Stock Exchange will make a decision to terminate the listing of the company's shares in accordance with the relevant provisions of the "Stock Listing Rules". Like Guanghui Auto, if the company applies for a hearing, it should submit a written hearing application within 5 trading days after receiving this notice.

According to data, *ST Tiancheng was listed in 1997, and its main businesses include electrical equipment manufacturing, mineral resource development and finance. In recent years, the company's annual operating income has hovered around more than 100 million yuan, and its net profit has been in the red for five consecutive years, and its non-net profit has been in the red for at least 12 consecutive years.

On July 19, *ST Tiancheng’s share price was 0.73 yuan, and its market value was only 372 million yuan.

Editor: Xiaomo

Review: Xu Wen

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