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On July 22, the share price of *ST Shentian once again hit the limit down, closing at 1.90 yuan, and its latest market value was only 264 million yuan.

So far, the closing market value of *ST Shentian’s stock has been below 300 million yuan for 18 consecutive trading days. Even if the company’s closing price hits the daily limit for two consecutive trading days, its stock market value is still below 300 million yuan.

That night, *ST Shentian issued the tenth risk warning announcement regarding the possible delisting of the company's shares.

According to the regulations that are still in effect, if the closing market value of a company's shares on the Shenzhen Stock Exchange is less than 300 million yuan for 20 consecutive trading days, the Shenzhen Stock Exchange will terminate its stock listing.

If *ST Shentian is delisted, it will become the first case of an A-share company being delisted due to market value in history.

OtherAccording to the "Shenzhen Stock Exchange Listing Rules (Revised in 2024)" previously issued by the Shenzhen Stock Exchange, if an A-share company's "total closing market value of its stocks on the Exchange is less than 500 million yuan for twenty consecutive trading days", it will be delisted. The revision of the market value delisting situation will calculate the relevant period from October 30, 2024, which means that the probability of listed companies being delisted by market value will be higher in the future.

It may be the first A-share company to be delisted by market value

The new delisting rules issued at the end of 2020 added a market value delisting indicator of "the total market value of stocks at closing is less than 300 million yuan for 20 consecutive trading days", but in the following years, trading-related delisting companies were mainly delisted by "face value delisting", and no company reached the market value delisting indicator.

Subsequently, the new "National Nine Articles" required "improving market value standards and other trading-related delisting indicators." Against this background, in April 2024, the Shanghai and Shenzhen Stock Exchanges revised and improved the relevant delisting rules:MotherboardThe market value delisting standard for A-share (including A+B-share) companies will be raised from 300 million yuan to 500 million yuan starting from October 30. The transition period will be from the end of April to the end of October, and the market value delisting standard will remain at 300 million yuan.gemandScience and Technology Innovation BoardThe company's market value delisting standard remains unchanged at 300 million yuan.

Public information shows that *ST Shentian Company is the full name of Shenzhen Tiandi (Group) Co., Ltd. It is a listed company with commercial concrete as its main business and real estate as its pillar industry. Its main industries include the production and sales of commercial concrete, real estate development and property management. The company's concrete business is concentrated in Shenzhen and Zhuzhou; real estate development is mainly in Shenzhen, Xi'an and Lianyungang; property management is mainly in Shenzhen. The company stated in its 2023 annual report that the company's concrete business was affected by unfavorable factors such as insufficient market demand and increased financial pressure in the industry, resulting in an increase in the unit operating cost of concrete and increasing difficulties in the operation of the company.

It can be seen from the publicly disclosed financial data that *ST Shentian’s operating income has shrunk significantly in recent years, from 1.783 billion yuan in 2020 to 178 million yuan in 2023, and it has been in the red for many years in terms of profits.

*ST Shentian’s latest semi-annual performance forecast for 2024 shows that the company expects the net profit attributable to shareholders of the listed company in the first half of 2024 to be a loss of 80 million to 100 million yuan, a decrease of 59.69% to 99.62% compared with the same period last year.

More companies are facing the risk of delisting by market value

Previously, Jianche B (200054.SZ) had triggered the market value delisting regulations because its stock closing market value on the Shenzhen Stock Exchange was less than 300 million yuan for 20 consecutive trading days, becoming the first B share in history to trigger the market value delisting regulations.

On June 14, Jianche B issued an announcement stating that the company's stock had reached the mandatory delisting index for trading.SuspensionThis means that Jianche B has become the first listed company to reach the trading delisting indicator due to its market value not meeting the standard.

On the evening of June 18, Jianche B issued another announcement stating that the company received a "Preliminary Notice" issued by the Shenzhen Stock Exchange on the same day.It shows that from May 17 to June 14, 2024, the closing market value of the company's stocks on the Exchange was less than 300 million yuan for 20 consecutive trading days, which violated relevant regulations. The Shenzhen Stock Exchange intends to decide to terminate the company's stock listing.

In addition to the above-mentioned companies, the market value of some listed companies once fell below 300 million yuan and also faced the risk of delisting due to market value.*ST Meixun recently issued a risk warning announcement that the company's stock may be delisted due to its market value being less than 300 million yuan, warning of the risk of delisting due to market value. Although the company's market value has recently returned to more than 300 million yuan, its latest market value is only 311 million yuan.

Ning Communication B also announced recently that the company's stock closing market value on July 17, 2024 was RMB 287 million, falling below RMB 300 million for the first time.

More than 40 companies are expected to delist this year

In 2024, the delisting efforts of the mainland securities market will be further strengthened.

Wind data shows that, based on the delisting date, nearly 30 listed companies have been delisted by exchanges and have been delisted from the A-share market since the beginning of this year. Among them, the most common type of forced delisting is trading.The main type of delisting is at par value.

If the number of companies that have been delisted during the year, companies that have received advance notice of delisting from the exchange, companies that have received delisting decisions but have not yet been delisted, and companies that have locked in par value delisting conditions in advance are counted,mergeAccording to statistics, the number of companies delisted this year is expected to exceed 40.