1. There is a listed company Zhongneng International Holdings Group Co., Ltd. (number before delisting: 1096, hereinafter referred to as “Zhongneng”), a “zombie stock”, officially passed away on December 16, 2022.
2. There are often suspensions and delisting companies, and the apparent cause of death at this time is that the company’s performance has not been published within the deadline for many times, and according to Article 6.01A of the #Listing Rules, the stock exchange’s ownership will be suspended for more In 18 months (previously it was in the “indefinite” half-day suspension status, the relevant consultation summary was published on May 25, 2018, and the newly shortened delisting period took effect from 01/10/2019) directly give it a ride, that is Let’s study it together.
3. The source of the matter is that Zhongneng will be suspended from September 1, 2020, and it will take 26 months from the date of suspension to delisting. The death penalty was originally scheduled to be executed 18 months after the stipulation in Article 6.01A, that is, on March 28, 2022. However, since Zhongneng subsequently applied to the Stock Exchange for delisting review (notified the company on June 28, 2022 to maintain the execution of the death penalty), Judicial review (Zhongneng appealed to the High Court on July 29, 2022, but failed), further postponed the death date, blindly “dragging the word”, and finally came to the official end today.
4. In the past few days, in order not to be delisted from HKEx, Zhongneng has tried his best on the day before his death and three days before his death, claiming to have sent letters to the Legislative Council, the Stock Exchange, and the Securities Regulatory Commission , the China Securities Regulatory Commission, the Office of the Ombudsman, and the major media in China and Hong Kong, thinking that after “beating the drum to express grievances”, someone will help them speak out.
5. In fact, the stock exchange has seldom wronged the wrong person when it stopped or removed your license. Take a look together to form a story.
6. Zhongneng is engaged in the business of gas filling stations in mainland China, as well as the sales of casual shoes, clothing and related accessories. Starting from the fiscal year of 2014, it lost money until the day before its death (according to the public company financial data).
7. The Financial Year of Zhongneng is on December 31 like most listed companies, so there is nothing special about it.
8. On March 31, 2020, which is the three-month listing rule deadline of the company’s Accounting Reference Period, China Energy can only release Unaudited’s full-year performance announcement, because it cannot be completed due to COVID-19 Audit work (for example: Auditor “cannot go to some locations of the company (including Henan) to perform audit work”).
9. The annual report has not been completed, and the AGM is required. The announcement on August 6, 2020, the Agenda Item does not include Receive, Consider, and Adopt’s Financial Statements, Auditor’s Report, and Directors’ Report for the year ended 2019. On August 12, 2020, Hezhu issued a “Supplementary Notice of the Annual General Meeting” and postponed the receipt of the 2019 Annual Report. The house leak happened to be raining overnight, on August 20, 2020, because an INED passed away on August 14, 2020, the number of re-elections changed from three to two, which was not enough, and an ED re-election was added. If you are interested, you can read it and click to write.
10. Zhongneng will no longer open AGM in 2021 and 2022.
11. On June 30, 2022, Zhongneng released two Announcements in one breath, 2019 Audited Annual Results and 2020 Interim Results, and on July 3, 2022, it released 2020 Audited Annual Results and 2021 Interim Results. Well, I want to ask, where is the 2021 Audited Annual Results? Where is the 2019 annual report? Where is the 2020 annual report? Where is the 2021 annual report?
12. It’s time to come to Xiyu, and the Stock Exchange issued an Announcement on the status of Zhongneng on December 14, 2022:
“The Exchange announces that with effect from 9:00 a.m. on 16 December 2022, the company’s listing status will be canceled pursuant to Rule 6.01A of the Listing Rules.
Trading in the company’s shares has been suspended since September 1, 2020. Pursuant to Rule 6.01A of the Listing Rules, if the company fails to resume trading on or before 28 February 2022, the Exchange may delist the company.
The company failed to fulfill the resumption guidelines set by the Stock Exchange on or before February 28, 2022 and resumed trading. On 23 March 2022, the Listing Committee decided to cancel the listing of the Company’s shares on the Stock Exchange pursuant to Rule 6.01A of the Listing Rules.
On 28 March 2022, the company applied to the Listing Review Committee for a review of the Listing Committee’s decision. On 28 June 2022, the Listing Review Committee upheld the Listing Committee’s decision to cancel the company’s listing. On 29 July 2022, the Company applied to the High Court of the Hong Kong Special Administrative Region (the High Court) for leave to institute judicial review, requesting the approval of the Judicial Review of the Listing Review Committee decision (Application). On 15 November 2022, the High Court dismissed the application.
According to this, the Stock Exchange will cancel the company’s listing status from 9:00 am on December 16, 2022. “
13. Zhongneng claimed in the Announcements on December 13 and December 15, 2022 that investors and shareholders supported the accusation that the Stock Exchange and the China Securities Regulatory Commission did not fulfill their responsibilities to protect the interests of investors of the suspended company. An excerpt from the Announcement of 13 as an example:
“Recently, our company has also received letters addressed to the Legislative Council, the Stock Exchange, the China Securities Regulatory Commission, the China Securities Regulatory Commission, the Office of the Ombudsman and major media in China and Hong Kong with copies to the company. Investors have jointly initiated legal proceedings against the Stock Exchange and the Securities Regulatory Commission, claiming to pursue and claim their losses from the relevant authorities.”
14. Wow, so badly complained to the Stock Exchange and the Securities Regulatory Commission, and wrote letters to parties that don’t care much, such as the Legislative Council, the China Securities Regulatory Commission, the Office of the Ombudsman, and major media in China and Hong Kong. Let’s ask “Ask Me” to find “Buddha Buddha”, “Second Brother Guan”, “Bruce Lee”, “Ip Man”, “Spiderman”, “One Punch Man”, and “Naruto”. But it doesn’t matter, communication is two-way, if he doesn’t call you, if you go to call him, and if you become a master, the soul falls to call them, it’s useless.
15. Actually, I don’t want to make fun of people, but if you can’t show your performance, the annual report and the stock exchange insist on collecting your skins, it’s useless for you to “spread scum”. This pair of Cases has a lot to learn, and it is worth collecting as a specimen (is it a specimen after death?). Learn from it.
16. For Listed Co Compliance of a listed company, one must develop a habit of collecting announcements of corporate exercises of different types of listed companies. This action is more important than how many times you watch Rules. To be honest, after you watch Rules, you just want to know something.
17. Everyone has their own aesthetic standard, you can refer to other people to collect samples, but you should do it yourself. Also, if you go to the stock exchange, CLP, Cheung Kong and other large companies for reference, many of them will do Voluntary Disclosure, Disclose more than needed, which is too “off the ground”. Generally, listed companies may not have so many resources to cooperate. Who knows that the Stock Exchange has done a good job, and it has set some rules. But, can we do our homework first to reach its level?
18. Depending on the strength of your company’s Compliance, find an Announcement that suits you for reference. Good announcements should be kept, and bad ones should be kept, and be careful not to leak.
References:
1. Related: The company sent letters to the Stock Exchange, the Securities Regulatory Commission, the Legislative Council and the Hong Kong Chief Executive’s Office to delay the cancellation of the status of a listed company. (15/12/2022)
2. cancellation of listing (14/12/2022)
3. Notice of cancellation of listing status of the Company and notice of complaints and objections from minority shareholders (13/12/2022)
For other Announcements, check them yourself, remember to go to “Delisted Securities”.
Memory:facebook.com/MemoriaSzeYik
Note: The opinion of the columnist does not represent the position of this website.
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