In The Past Three Years, The Fujian Company, Which Even Lost 1 Billion 600 Million, Ended Its Listing, And 61 Thousand And 400 Shareholders "Stepped On The Thunder".

Fujian Zhonghe Limited by Share Ltd (hereinafter referred to as "*ST Zhonghe") announced in the evening of May 17th that the company received the decision of the Shenzhen stock exchange to terminate the listing of Fujian public and Limited by Share Ltd shares today. In May 17, 2019, the Shenzhen Stock Exchange decided to terminate the listing of the company's shares.

*ST said that since 2015, 2016 and 2017, the net profit of audited three consecutive accounting years was negative, and the company's shares were suspended from May 15, 2018.

In April 30, 2019, the annual report released by the company in 2018 showed that the net profit of the company attributing to its parent company in 2018 was -5.73 billion yuan. The net assets attributable to the owner of the parent company amounted to -11.03 billion, and the company's financial accounting report was issued by Fujian Huaxing accounting firm (special general partnership), unable to express its opinion, which touched on the stock termination of listing 14.4.1 (two), (three) and (five) of the Stock Exchange Listing Rules of the stock exchange (November 2018 Revision).

According to the provisions of article 14.4.1 (two), (three), (five), 14.4.2 of the Shenzhen Stock Exchange Listing Rules (November 2018 Revision), and the examination opinions of the Shenzhen Stock Exchange Listing Committee, the Shenzhen stock exchange has decided to terminate the stock market.

The company's stock has entered the delisting and finishing period since May 27, 2019, and the Shenzhen stock exchange has delisted the shares of the company on the next day after the expiration of the delisting period.

The company will terminate the listing and follow up work in accordance with relevant regulations.

*ST and after the stock market is terminated, it will be pferred to the share pfer system of the national small and medium enterprises to pfer shares. At present, *ST Zhonghe has hired the the Great Wall securities Limited by Share Ltd as an agent to entrust it to provide share pfer services, and authorize it to handle the stock registration and clearing system stock registration and exit registration of the stock exchange market, handle the stock reconfirmation and the registration and settlement of the share pfer system of the small and medium-sized enterprises in the whole country.

*ST and the 2017 annual performance bulletin, which had been released previously, predicted that the amount of loss in 2017 would exceed the performance bulletin in a large margin. The main reasons were: the textile printing and dyeing business has been completely shut down, the sale of loss assets has not made progress, the left behind personnel are inefficient, and the customers' cooperation is poor.

*ST Zhonghe has said that the debt crisis and operational crisis it faced are very serious. Due to the loss of asset impairment and the impact of litigation related matters on performance has not been approved, it is estimated that the amount of loss in 2017 will exceed the data of performance bulletin.

The debt crisis, according to the three quarterly report of 2017, revealed that the total liabilities of the *ST crowd and the end of 9 in 2017 were 2 billion 84 million, and their assets and liabilities were up to 78.41%.

However, according to the recent announcement, there are 94 litigation and arbitration matters that *ST Zhonghe and its subsidiaries have not completed. Among them, 32 of the dispute cases involve 1 billion 416 million 695 thousand and 100 yuan of loan principal and corresponding interest and breach of contract damages, 58 cases of suppliers' arrears, labor disputes, and arrears of works, involving about 86 million 154 thousand and 900 yuan of litigation claims, 4 cases of external security disputes, involving about 199 million 163 thousand and 600 yuan of guarantee principal balance and corresponding interest and breach of contract damages.

The result of the above litigation and arbitration is that it has led to the closure of *ST and its subsidiaries, including property, land, bank accounts and subsidiaries.

The company announcement indicates that the assets seized are facing the risk of being auctioned.

And *ST and the serious business crisis, the company's textile and dyeing board business has been completely stagnant. The production and operation of the new energy lithium plate is affected by factors such as climate and environmental protection policies, and there is a certain uncertainty in the continuous operation and performance.

In the two tier market, *ST shares and share prices also declined significantly. In December 17, 2015, ST and its close price of up to 30.26 yuan / share had reached a market value of 19 billion 215 million yuan, and there have been 18 consecutive down limits since November 3, 2017. The closing price ended at March 16th was only 4.13 yuan / share, and the market value was 2 billion 623 million yuan.

The industry has said that environmental protection and cost pressures are one of the biggest difficulties for textile and garment enterprises. *ST Zhonghe has also been affected by the same effect, especially the chemical products such as dyes and chemicals, and the rise of comprehensive costs have caused great pressure on the cost of enterprises. It can be said that the operation of ST Zhonghe mainly depends on the direction of the macro environment and the industry situation.

According to the first textile net report, at the end of 2007, *ST and Xiamen fully purchased its own good profit and good printing and dyeing capacity, which provided a guarantee for increasing production capacity: enabling the company to rapidly expand its capacity, improve the efficiency of delivery, and better meet the fast delivery requirements of customers.

As of June 2008, there were 7 printing and dyeing production lines in Putian, and 5 dyeing production lines and 3 printing lines in Hua Lun dyeing and printing, which have become an important production base.

At that time, ST and its total capacity had reached 120 million meters, and the effective output was about 7000-8000 m.

It is estimated that the production cost of the company is composed of the following parts: grey cloth, dyestuff, steam, fuel power, labor, sewage treatment and depreciation of fixed assets. Labor cost, dyestuff, fuel power and sewage treatment cost account for the bulk.

The marketing mode of secondary and quick delivery is that the scale of the dyeing and finishing enterprises in Fujian is not large, and the marketing mode of small batch, multi batch and quick delivery is the main form. Many casual dress enterprises around the world constitute its main customers. Some enterprises are mainly direct battalion mode, but the gross profit is higher than that of the general processing and dyeing enterprises. However, the turnover rate is relatively low, and the shares and shares of Putian are the above characteristics. However, considering the increasing labor force cost, the thinning of the dyeing and finishing links and the low bargaining power of the industry, ST realizes that the pformation of the profit mode is the foundation of the sustainable development, and is determined to become the core supplier of the famous clothing brand, but it is affected by many factors, and then it is arranged in the lithium battery industry chain. A textile industry analyst once said that under the influence of regional economic environment, the scale of dyeing and finishing enterprises in Fujian is not large.

Luo Ting, an analyst with CITIC Securities, said that as far as printing and dyeing industry is concerned, small businesses are moving faster and leading enterprises are upgrading.

The environmental policy is concentrated and the environment is stricter. The main trend is the upgrading of the industry's reshuffle concentration. The implementation of this environmental inspection is expected to exceed the market expectation. The production cost of small businesses will be greatly improved, and the alliance between small enterprises and the relocation of parks will be accelerated.

According to Luo Ting, at present, the profit rate of China's printing and dyeing industry is relatively low, only about 5%. The leading companies in China share only 4 yuan / square meters of dyeing fees, while the import dye up to 2 dollars per square meter. There is still much room for development of high value-added products. Transformation and upgrading, production of high-end products or the future direction of development of large enterprises.

Public information shows that the *ST public has been approved by the Fujian Provincial People's government and approved by Fujian Zhonghe Group Co., Ltd. as a whole. It has been approved by the people's Government of the people's Government of the people's Republic of China in.

In February 25, 2002, the business license of enterprise legal person was obtained.

In October 12, 2006, the company successfully launched its initial public offering and traded on the Shenzhen stock exchange.

*ST public and main cotton leisure fabric development, production and sales, for Fujian province "100 key enterprises", Fujian province private top 100 enterprises, domestic cotton leisure fabric leading enterprises and Putian first domestic listed enterprises.

The company has five domestic advanced dyeing production lines and matching finishing equipment. It is well-known for Fujian's "100 key enterprises", Fujian provincial top 100 private enterprises, domestic cotton leisure fabrics leading enterprises and Putian's first domestic listed companies, including seven wolves, nine Mu Wang, Jin Ba, AI Ge, YISHION, exceptions, Zara, Levi 's, HaggarClothingInc and so on.