On the evening of April 6, the mainland Shenzhen Stock Exchange issued an announcement to implement the mandatory delisting of the shares of Kangde Xin Composite Materials Group Co. The period of consolidation. So far the “new material white horse stock” huge financial fraud case came to an end.
According to the Daily Economic News on April 7, the Shenzhen Stock Exchange issued an announcement on the termination of the listing of the shares of Kangde Xin Composites Group Co.
The announcement stated that the annual reports disclosed by Kangde Xin Composites Group Co. from 2015 to 2018 were falsely recorded, and the company’s net profit attributable to shareholders of the listed company from 2015 to 2018 was continuously negative after retroactive restatement.
Meanwhile, the Company’s shares have been suspended from July 10, 2020 due to the issuance of audit reports with unavailable opinions on the financial accounting reports for two consecutive fiscal years in 2018 and 2019. The first annual report (2020 annual report) after the suspension of the Company’s shares showed that the Company’s 2020 net profit, net profit after extraordinary gain or loss and closing net assets attributable to shareholders of the listed company were all negative, and the Company’s financial accounting report was issued with a qualified audit report.
According to the relevant regulations of Shenzhen Stock Exchange, it was decided to implement the mandatory delisting of the company’s shares from April 6, 2021 for material violations of the law and the termination of the listing of the company’s shares.
The announcement said that the company’s shares will enter the delisting period from April 14, 2021, and the Company’s shares will be delisted on the trading day following the expiration of the delisting period.
The announcement of the same night indicated that the last trading date is expected to be May 28. After the termination of listing, the company’s shares will be transferred to the National Small and Medium Enterprise Stock Transfer System for share transfer.
As of the suspension, the latest share price of *ST Kangde was RMB 3.25 per share, with a market value of RMB 12.464 billion.
CondeXin, the world’s largest producer of pre-coated films, was listed on A-shares in 2010, and its share price once peaked at RMB 26.78 per share on Nov. 22, 2017, when its market value once exceeded RMB 94.8 billion.
However, on the evening of January 15, 2019, Kangde Xin, once known as the “new material white horse stock”, issued an announcement, saying that since the fourth quarter of 2018, the company had temporary difficulties in capital turnover. This led to a material default on the company’s first issue of ultra-short-term financing bonds (18Kondexin SCP001) in 2018, which totaled 1 billion yuan, with a total principal and interest of 1.04 billion yuan.
On January 21, Kangde Xin issued another announcement, saying that another bond of the company, “18Kangde Xin SCP002”, failed to pay the principal and interest as scheduled, constituting a material default. The bond issue totaled 500 million yuan, with a total principal and interest of 520 million yuan.
But from the current balance sheet of Kangde Xin at the end of the third quarter of 2018, the company had a gearing ratio of 45.46% as of the end of September 2018, a cash balance of $15 billion on its books as of the end of September 2018, and $2.79 billion in wealth management funds.
With tens of billions of deposits but unable to repay $1.5 billion of debt, Kangde Xin has sparked great concern in the market.
On January 22, 2019, under the concern of the outside world, the Communist Party of China Securities Regulatory Commission launched a case investigation. 23, because the main bank account was frozen, Kangde Xin triggered other risk warning situations, and the company’s shares were subject to special treatment of “delisting risk warning” from May 6, becoming “*ST Kangde “.
In February of that year, Kangde New Chairman Zhong Yu resigned, and on December 16, Zhong Yu was arrested for alleged crimes.
On July 5, 2019, the SFC announced the results of its investigation, which showed that from January 2015 to December 2018, Kangde Xin inflated its total profits by 2.381 billion yuan, 3.089 billion yuan, 3.974 billion yuan and 2.477 billion yuan, with a cumulative inflated profit of 11.921 billion yuan in four years. Moreover, the actual balance of each year-end of the bank account of Kangde Xin involved in the cash management agreement signed between Kangde Xin’s major shareholder, Kangde Group, and the relevant bank was zero.
On July 8, 2019, the suspension of trading of CondeXin’s shares began and has not been resumed. 2020 On July 10, 2020, CondeXin suspended its listing due to the issuance of audit reports with unavailable opinions on its financial accounting reports for two consecutive fiscal years in 2018 and 2019.
Kangde new financial fraud by the loss of do big is to buy the company’s shares of investors, according to Wind data show that as of February 26 this year, *ST Kangde shareholders accounted for 133,100 households.
Shandong Qingdao netizen “Bai Hao Wei” said: “financial fraud should not let the shareholders pay, should be the person responsible for the fraud to punish the family lost their money.”
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