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The predecessor Yinyi shares repeatedly carried out high dividends and stock transfers, but eventually Shanzi Hi-Tech suffered a great loss. Now that Shanzi Hi-Tech's stock price is below 1 yuan, the side effects of excessive high dividends and stock transfers have begun to emerge. For companies whose stock prices are not very high, high dividends and stock transfers should still be operated with caution. Blindly expanding share capital is not advisable. Maintaining the highest possible stock price has a strong practical significance.

Shanzi Hi-Tech is one of the few companies whose share price is below 1 yuan and has not been ST-ed. If it had not had multiple high dividend and share transfer operations in the past, Shanzi Hi-Tech might not have to worry about delisting at par value now.

The delisting crisis that Shanzi Hi-Tech is currently facing is directly related to the fact that its total share capital is too large. Currently, Shanzi Hi-Tech's total share capital is about 9.997 billion shares, which is considered a large-cap company in the A-share market. The reason why the share capital is so large is that on the one hand, it is related to the previous bankruptcy reorganization of Yinyi Shares, and on the other hand, Yinyi Shares has frequently issued high dividends and transfers, which excessively magnified the share capital scale.

Nowadays, even with a share price of 1 yuan, Shanzi Hi-Tech's corresponding market value is as high as nearly 10 billion yuan. The larger the share capital, the higher the profitability requirements for listed companies. Unfortunately, Shanzi Hi-Tech's performance level does not match the scale of its total share capital. Financial data show that in 2023, Shanzi Hi-Tech's attributable net profit loss will be approximately 2.057 billion yuan, and the net profit loss after deducting non-recurring items will be approximately 2.18 billion yuan. In the first half of this year, Shanzi Hi-Tech expects its attributable net profit to be a loss of approximately 600 million to 800 million yuan, and its net profit after deducting non-recurring items is expected to be a loss of 350 million to 500 million yuan. With a large share capital and continued huge losses in operating performance, it is not surprising that Shanzi Hi-Tech's stock price continues to be under pressure in the secondary market.

Faced with the possible risk of delisting at par value, the company has launched a combination of measures to protect its listing status, including the chairman not receiving salary until the stock price returns to 1.6 yuan, the major shareholder promising to increase its holdings by 10 million shares, and the listed company having to spend 600 million to 1 billion yuan on repurchases. As a result, Shanzi Hi-Tech's stock price rose to the daily limit on July 29.

However, investors still need to remain rational. Low-priced stocks frequently launch measures to maintain their listing status, but there is great uncertainty as to whether they can ultimately achieve the goal of stabilizing stock prices and successfully maintaining their listing status.

Whether it is a letter to all shareholders issued by Shanzi Hi-Tech or the chairman's voluntary salary suspension commitment, they are actually aimed at stabilizing investor sentiment and boosting market confidence in order to revive the company's stock price. However, the value of a listed company is ultimately determined by its operating performance. Before Shanzi Hi-Tech's performance level reaches market expectations, other means of maintaining its listing status can only temporarily support the company's stock price, but how much effect it can have and how long it can support it are unknown.

For other listed companies, they must learn from the experience of Yinyi Shares and not blindly and excessively increase the number of bonus shares and stock transfers. Once upon a time, listed companies were keen on increasing the number of bonus shares and stock transfers in order to create hot spots. The larger the equity scale and the lower the stock price, the more enthusiasm for market speculation may be. However, in the medium and long term, if the company's performance level cannot achieve sustained, stable and high-speed growth, the high number of bonus shares and stock transfers may have a negative impact on the company. Once the performance is not as good as market expectations, the company's stock may encounter investors voting with their feet, and the stock price will continue to fall, which will eventually increase the risk of delisting at par value.

Beijing Business Daily commentator Zhou Kejing