news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Faced with the continuous limit down of stock price, Ye Ji, chairman of Shanzi Hi-Tech, caused the stock price to hit two limit ups with a letter to shareholders.

Shanzi Hi-Tech's stock price fell to the limit for four consecutive trading days starting from July 22. On July 24, the company's closing price was 0.90 yuan per share, the first time the closing price was below 1 yuan.

On July 25, Shanzi Hi-Tech warned of delisting risks for the first time.

On July 26, although the stock opened up 8.64%, it still failed to push the share price above the 1 yuan red line. The closing price fell to 0.86 yuan per share, approaching the brink of delisting at par value.

Last weekend, an article titled "A letter to all shareholders: insist on doing difficult but right things" was published on Shanzi Hi-Tech's official Weibo account.

Chairman Ye Ji expressed deep apologies to investors and said that he had applied to the board of directors to stop paying his personal salary until the stock price returned to above 1.6 yuan per share. In addition to repurchasing shares, he will also take all-round measures to try to stabilize the stock price to a safe range.

After the apology letter was released, Shanzi Hi-Tech's popularity not only soared, but also saw its long-awaited daily limit.

The decline of Ningbo’s former land king

Public information shows that Shanzi Hi-Tech's predecessor was Yinyi Co., Ltd., which was established in 1998 and listed on the Shenzhen Stock Exchange in 2011 by acquiring Languang Technology.

As a leading real estate company in Ningbo, Yinyi shares is well-known in the real estate sector. Since 2004, the company has been listed in the top 100 real estate companies in China for 15 consecutive years. Xiong Xuqiang, the founder of Yinyi Group and former actual controller of Yinyi shares, was once known as the richest man in Ningbo.

2016 was an important turning point in the development of Yinyi Shares. At that time, the company determined the development pattern of "real estate + high-end manufacturing" and took the automobile manufacturing industry as a new growth engine.

Soon after, Yinyi Holdings selected Ningbo Haosheng and Dongfang Yisheng as its primary targets for acquisition. Ningbo Haosheng belongs to ARC Group, the world's second largest independent manufacturer of automotive airbag inflators, while Dongfang Yisheng belongs to Punch Group, a world-renowned independent manufacturer of automotive automatic transmissions.

It is reported that the acquisition amount of the above two companies exceeds 10 billion yuan.

However, the fuel vehicle parts business, which was highly anticipated, not only failed to become the company's second growth curve, but instead plunged the company into serious difficulties.

On the one hand, large-scale mergers and acquisitions have brought tremendous pressure to the company's capital chain; on the other hand, the revenue from the fuel vehicle parts business was far below expectations, and the real estate industry accelerated its decline.

In 2018, a crisis broke out in Yinyi Shares.

Misfortunes never come singly. In 2019, the major shareholder of Yinyi Shares was found to have illegally occupied the funds of the listed company. Coupled with the debt crisis, the company faced a serious financial crisis and was forced to go bankrupt and reorganize.

In November 2022, Yinyi Shares announced that the restructuring plan had been completed. Jiaxing Zihe Jinxin Equity Investment Partnership (Limited Partnership) became the restructuring investor of Yinyi Shares by investing 3.2 billion yuan. Ye Ji became the new actual controller of the company and "changed his name".

In 2023, the company was officially renamed Shanzi Hi-Tech.

In March this year, Shanzi Hi-Tech announced that due to difficulties in operating its real estate business, the company planned to publicly list and transfer the company's real estate business-related equity and debt assets through a property rights trading institution. After three listings, Jiangsu Lianyungang company Dali Honglin finally won the bid.

On June 29, Shanzi Hi-Tech announced that it had sold 100% of Yinyi Real Estate's equity and the company's and its holding subsidiaries' receivables from the divested enterprises for RMB 601 million. Thus, Shanzi Hi-Tech officially bid farewell to the real estate industry where it had been deeply involved for 30 years.

Industry analysts believe that the failure of Yinyi shares is not just a problem of an individual company, but rather exposes the common problems that many companies may encounter during the transformation process. A once-glorious real estate company has finally pushed itself to the edge of the cliff in a series of cross-border mergers and acquisitions.

Listed companies launched the "1 yuan defense war"

In fact, Shanzi Hi-Tech is not an isolated case. Since the release of the new "Nine National Regulations" and the new delisting rules, the intensity of forced delisting has increased, and "1 yuan delisting" has become more and more normal.

According to data from 10Jun, as of the close of trading on July 30, there were 479 companies in the Shanghai and Shenzhen A-share markets whose share prices were 3 yuan or below, accounting for nearly one-tenth of the total number of listed companies.

Among them, there are 24 listed companies with share prices at 1 yuan or below, and some of them have triggered the par value delisting rules and are locked in delisting; in addition, there are 74 listed companies with share prices between 1 yuan per share and 1.5 yuan per share.

From the perspective of industry distribution, among the 479 listed companies with share prices of 3 yuan or below, there are as many as 51 listed companies in the real estate industry, accounting for more than 10%; there are 38 listed companies in the construction and decoration industry; and 33 listed companies in the machinery and equipment industry.

In the first half of 2024, with the continued in-depth adjustment of the industry, the stock price performance of the real estate sector showed a certain volatility. The stock prices of some large real estate companies such as Vanke, Greenland, Binjiang, etc. 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 companies; Zhejiang Province ranks second with 45 companies; Jiangsu and Beijing have 43 and 41 companies respectively.

Faced with this grim situation, many listed companies have taken self-help measures and launched a "1 yuan defense war" for stock prices. At present, there are three main ways: shareholders increase their holdings; stimulate stock prices through company repurchases; and increase the value of the company by injecting assets from controlling shareholders.

On July 16, Xinhu Zhongbao disclosed an announcement that the company's largest shareholder, Quzhou Zhibao, plans to increase its holdings in the company's shares through the centralized bidding method of the Shanghai Stock Exchange trading system within 6 months from July 16. The amount of increase will range from no less than 50 million yuan to no more than 100 million yuan, and the increase price will not be higher than 2 yuan per share.

On July 25, the closing price of Yatai Group was 0.97 yuan per share, and the closing price was below 1 yuan for two consecutive days. In the past month, the company's stock price has been fluctuating around the "1 yuan red line". In late June this year, when the stock price of Yatai Group fell below 1 yuan for the first time and continued to fall, the state-owned major shareholder urgently increased its holdings and pulled the stock price back to above 1 yuan.

Industry analysts believe that the increase in holdings by major shareholders is generally worthy of recognition. It not only helps to clean up the "zombie shells" and "black sheep" in the market, but also promotes self-examination and self-correction by listed companies. For companies, by increasing holdings, repurchases, restructuring and reorganization, they can increase their share prices in the short term, avoid delisting, and buy time and opportunities to improve their operating conditions.