Industry Stock Market: Delisting: Countdown To Delisting Of "BOC Velvet Industry"

On August 2, Shenzhen Stock Exchange issued the Decision on the Termination of the Listing of Shares of Ningxia Zhongyin Rongye Co., Ltd. (SZS [2024] No. 628), and Shenzhen Stock Exchange decided to terminate the listing of shares of "Zhongyin Rongye".

The next day, Ningxia Zhongyin Rongye Co., Ltd. (hereinafter referred to as "Zhongyin Rongye") issued an announcement (announcement number: 2024-82), announcing that it had received the decision on the delisting of its shares. This enterprise, which was founded in 1998 and listed on the Shenzhen Stock Exchange in 2000, is about to withdraw from the list of listed companies. This news is regrettable.

Why was the listing terminated?

According to the fact that the closing price of BOC Rongye's shares through the SZSE trading system during the period from May 24 to June 21, 2024 is less than 1 yuan for 20 consecutive trading days, which touches the delisting situation of shares specified in Item 4, Paragraph 1, Article 9.2.1 of the Stock Listing Rules (Revised in 2024) of the Exchange.

According to the provisions of Article 9.2.7 of the Stock Listing Rules (Revised in 2024) of Shenzhen Stock Exchange and the review opinions of the Listing Review Committee of Shenzhen Stock Exchange, Shenzhen Stock Exchange decided to terminate the listing of BOC Rongye shares. At the same time, in accordance with the provisions of Article 9.1.15 and Paragraph 2 of Article 9.6.10 of the Stock Listing Rules (Revised in 2024) of the Exchange, BOC Rongye's shares are subject to the decision of Shenzhen Stock Exchange to terminate listing due to the circumstances of compulsory delisting of trading type, and will not enter the delisting consolidation period. The company's shares will be delisted within 15 trading days after the decision of Shenzhen Stock Exchange to terminate listing.

Why is the stock price like this?

First of all, according to the 2023 Annual Report of BOC Cashmere Industry, BOC Cashmere Industry's main business is the trade of cashmere and cashmere products, the production and sales of new energy lithium battery cathode materials, the graphitization processing of cathode materials, the business of special graphite materials, and the two wheeled car power exchange business at the lithium battery application end, The business ranges from cashmere and cashmere products trade to battery new energy materials production, processing and trade.

During the reporting period, the company realized an operating revenue of 499685100 yuan, a year-on-year decrease of 20.47%; The operating cost was 425.1673 million yuan, a year-on-year decrease of 22.57%, the gross profit margin of main business was 14.91%, a year-on-year increase of 2.30%, and the total profit was -133.6217 million yuan, a year-on-year decrease of 1207.06%; The net profit attributable to the owners of the parent company was -135.259 million yuan, down 1416.11% from the previous year. The operating revenue in the reporting period decreased compared with the previous period, mainly due to the sharp drop in lithium carbonate price and the slowdown in downstream demand, the revenue of the subsidiary Sichuan Ligu New Energy Technology Co., Ltd. declined significantly. The total profits of the Company in the reporting period and the net profits attributable to the owners of the parent company were significantly lower than those in the previous period.

Secondly, according to the Semi annual Performance Forecast of 2024 of BOC Rongye, the expected operating performance from January 1, 2024 to June 30, 2024 is a loss. The expected net profit loss attributable to shareholders of the listed company is 16.5 million yuan – 20 million yuan, and the profit of the same period last year is 9.8305 million yuan.

Reason for performance change:

1. Affected by the continuous low price operation of lithium carbonate as a raw material and the slowdown of downstream demand, the net profit of Sichuan Ligu New Energy Technology Co., Ltd., a subsidiary within the consolidation scope of the company, decreased significantly compared with the same period last year.

2. Affected by the intensified competition in the power exchange industry, the net profit of Shanghai 982 IOT Technology Co., Ltd., a subsidiary within the consolidation scope of the company, in the reporting period decreased significantly compared with the same period last year.

3. Affected by the construction of cleaner production transformation, the net profit of Dujiangyan Juhengyi New Materials Co., Ltd., a subsidiary within the consolidated scope of the company, in the reporting period, decreased significantly compared with the same period last year.

4. The income from changes in fair value and investment income of the Company's trading financial assets during the reporting period was -4.6365 million yuan, reducing the profit of the reporting period by 4.6365 million yuan.

Treatment mechanism after termination of listing

According to the relevant provisions of the Stock Listing Rules, the Implementation Measures for Delisted Companies to Enter the Delisted Sector for Listing and Transfer, the company's shares will be transferred to the National Small and Medium sized Enterprise Share Transfer System Co., Ltd., a two network company established and managed by the original securities company agency share transfer system, and delisted companies for listing and transfer after the delisting.