In the evening of April 29, *ST HNA released its 2020 annual report, with a net loss of 64 billion yuan last year, creating the largest annual loss record of a single company ever in the A-share market.
A-share “king of losses” was born.
In the evening of April 29, *ST HNA (1.66 +2.47%, the diagnosis of shares) released its 2020 annual report, a net loss of 64 billion yuan last year, creating the largest annual loss record of a single company ever in the A-share market.
*ST HNA 2020 huge loss of 64 billion over *ST Salt Lake to become the A-share loss king in history
*ST HNA (600221) released its 2020 annual report on the evening of 29th, the report shows that the company made a net loss of 64.03 billion yuan last year, surpassing *ST Salt Lake in 2019 and creating a new record for the largest annual loss ever in A-share. It also exceeded the upper limit of the loss amount in the previous annual report forecast.
*ST Salt Lake (net profit loss of 45.86 billion yuan in 2019) and ST Kangmei (net profit loss of 27.736 billion yuan in 2020) followed closely behind, respectively.
What does a loss of 64 billion yuan a year mean? That is, a loss of 175 million per day, more than half of the A-share companies’ annual net profit. The recent incident of Zheng Shuang’s 160 million yuan huge film salary was hotly debated, 160 million was also jokingly called “1 cool”, 64 billion yuan is as much as 400 cool.
*ST HNA will face the risk of delisting and wants to introduce strategic investors
*ST HNA, the original Hainan Airlines, later renamed HNA Holdings, had the highest share price of 14.35 yuan in 2007, and still managed to maintain a net profit of more than 3 billion yuan per year during 2015 to 2017, but now only has a share price of 1.62 yuan and a total market value of 27.23 billion yuan.
As of the end of 2019, HNA Holdings’ net assets were 51.498 billion yuan, and now with a one-year loss of 64 billion yuan and all shareholder assets lost, it has become seriously insolvent and completely negative.
Because *ST HNA’s audited closing net assets for 2020 were negative and the company’s 2020 annual financial report was issued with an unavailable audit report by PricewaterhouseCoopers Zhongtian, the company triggered the “listed company’s shares are subject to delisting risk warning” according to the relevant provisions of 13.3.2 of the “Shanghai Stock Exchange Stock Listing Rules “, and will be subject to the delisting risk warning after the disclosure of the 2020 annual report.
According to the regulations, if the net assets are negative for two consecutive years or if a negative (unavailable) opinion is issued for two consecutive years, the listing will be suspended for one year. Three years of negative values will be delisted, that is, retired to the old three board trading. In other words, unless *ST HNA introduces strategic investors for capital increase, it is highly likely to be suspended next year. *ST HNA said in the announcement that the company will actively introduce strategic investors to ease the company’s capital pressure.
In addition, *STHNA said that the Hainan Provincial High Court had ruled on February 10, 2021 on the creditor’s application for reorganization of the company, and there is a risk that the company will be declared bankrupt due to the failure of reorganization.
As of the evening of April 29, all major A-share listed airlines have disclosed their 2020 results. Domestic airlines, without exception, suffered losses due to the global epidemic. Air China (8.13-5.68%, shares) loss of 14.409 billion yuan, Southern Airlines (6.36-1.40%, shares) loss of 10.842 billion yuan, Eastern Airlines (5.26-2.23%, shares) loss of 11.835 billion yuan, *ST HNA loss of 64.003 billion yuan, four airlines combined loss of more than 100 billion yuan!
There are also these stocks in 2020 losses also exceed the total market value
Wind data show that as of April 29 closing, has revealed the 2020 results of listed companies, including *ST HNA, a total of 14 stocks 2020 losses more than its total market value, including *ST HNA huge losses xx billion yuan, the loss exceeds 2 times the market value of the company. *ST Comet (1.89-5.03%, clinic shares), *ST Zongtai (4.55 +5.08%, clinic shares), respectively, a loss of 27.736 billion yuan and 10.801 billion yuan.