In the last three trading days, whether the closing price can return to the face value of 1 yuan will determine whether to delist or not; at this critical moment of fate, *ST Jin Yu suddenly announced that it was under investigation!
*ST Jinyu’s full name is Oriental Jinyu. It was once known as the “first jadeite stock” in A shares due to the big bull trend in 2015. The company was issued a delisting risk warning in June this year due to losses for two consecutive years. Today, the closing price yesterday was only 0.9 yuan, and the market value was only 1.21 billion yuan; as of today, the stock price of *ST Jinyu closed at 0.95 yuan in midday trading.
As of the end of the third quarter of this year, the number of shareholders of *ST Jinyu was 57,600.
Suddenly under investigation
On the evening of December 17, *ST Jin Yu announced that the company had received an “Investigation Notice” from the China Securities Regulatory Commission, and the CSRC decided to file an investigation on the company because of the company’s suspected violation of information disclosure.
*ST Jin Yu also stated that the company takes judicial reorganization as the main line and takes into account the principle of operation. The company’s reorganization application has not yet been accepted by the court, and it is uncertain whether the company will enter the reorganization process.
*ST Jinyu’s closing price has been lower than the face value of 1 yuan since November 25, and has been below 1 yuan for 16 consecutive trading days on December 16. After the opening of the market on December 17, the down limit of 0.82 yuan was firmly sealed. If the market closes at this point, it will be below 1 yuan for 17 consecutive trading days, and the daily limit will be pulled back to less than 1 yuan face value in the next 3 trading days.
According to the delisting rules of face value, if the closing price is lower than the face value (usually RMB 1) for 20 consecutive trading days, the delisting is triggered.
However, in late trading, *ST Jinyu strongly pulled out of the ground plate, and the daily limit was closed at 0.9 yuan. In the future, as long as 2 daily limits can return to the face value of 1 yuan, there is an opportunity to avoid the delisting of the face value.
However, it was suddenly investigated again. As of the end of the third quarter of this year, there are still 57,600 shareholders of *ST Jinyu.
In the highlight moment of 2015, in July of that year, the company’s market value was once close to 28 billion yuan, and now the market value is only 1.283 billion yuan.
Supervisory punishment for continuous fraud
The company was also punished for fraud. On December 7 this year, the Shanghai Stock Exchange issued a supervisory letter against the financial fraud violations of Oriental Jinyu, its actual controllers and related responsible persons, and made a disciplinary decision on the company and related responsible persons by reporting criticism, public identification and public condemnation .
The “Disciplinary Decision” shows that *ST Jinyu involved fictitious sales and purchase transactions, as well as false records in the 2016 and 2017 annual reports, and the 2018 semi-annual reports.
According to the “Disciplinary Decision”, in the 2016 and 2017 annual reports, and the 2018 semi-annual report, *ST Jinyu inflated operating income by 142 million yuan, 295 million yuan, and 120 million yuan, respectively; inflated operating costs were 47 million yuan, 1.1 billion yuan. 100 million yuan and 41 million yuan; total inflated profits of 95 million yuan, 184 million yuan and 79 million yuan, accounting for 29.60%, 59.7% and 211.48% of the total profit in the current consolidated income statement. In addition, in the 2018 semi-annual report, *ST Jinyu also inflated its accounts receivable by 77 million yuan.