Kaidi ecological debt crisis outcome: delisting into countdown

Another delisted stock will be born in 2020. On the afternoon of October 28, the Shenzhen Stock Exchange announced that Kaidi ecological (000939. SZ) shares were terminated from listing. Kaidi ecology was established in February 1993, formerly known as Wuhan Kaidi Electric Power Co., Ltd. in September 1999, Kaidi ecological Shenzhen Stock Exchange was listed. After going public, the company has transformed from the electric power industry to light assets and coal mines, and finally pushed itself to delisting step by step in the transformation process of biomass power generation. < p > < p > according to the announcement of Shenzhen Stock Exchange, the company’s shares were suspended from listing on May 13, 2019 according to the rules and the audit opinions of the Listing Committee of Shenzhen Stock Exchange, because the company was issued audit reports of “unable to express opinions” for two consecutive years in 2017 and 2018. < / P > < p > the first annual report (annual report of 2019) after the company’s shares were suspended from listing due to the above situation, the company’s shareholders belonging to the parent company had negative net profit and negative net assets in 2019, and the financial report of 2019 continued to be issued with “unable to express opinions”, which touched on the situation of stock delisting. On October 28, 2020, Shenzhen Stock Exchange decided to terminate the listing of the company’s shares. The company’s shares will enter the delisting consolidation period from November 5, 2020. The Shenzhen Stock Exchange will delist the company’s shares on the next trading day after the delisting consolidation period. < / P > < p > in the evening, Kaidi ecological announcement added that the company’s delisting consolidation period is 30 trading days, and the expected final trading date is December 16, 2020. < p > < p > at the same time, due to its own capital demand, the company’s shareholder Huabao trust plans to reduce its holdings by no more than 39.296 million shares through centralized bidding and no more than 78.5919 million shares through block trading. Before that, Huabao trust held 215 million shares of Kaidi ecology, accounting for 5.47% of the total share capital, and the shares were from non-public issuance. < p > < p > in 2017, the domino effect of Kaidi ecological risk began to appear. According to the financial report, the operating income and net profit attributable to the parent company after deducting non-profit were 5.446 billion yuan and – 2.663 billion yuan respectively, with no increase in income and profit, and the first loss after listing was recorded. In terms of cash flow, the net cash flow from financing activities was -3.293 billion yuan, compared with 7.824 billion yuan in 2016. The net increase in cash and cash equivalents of the company in 2017 was – 5.029 billion yuan, which was 5.870 billion yuan in 2016. < / P > < p > in 2018, Caddy’s ecological debt crisis officially broke out, and this year was also a year of “besieged on all sides” for the company. On May 7, Kaidi ecology issued two important announcements. One was that the principal and interest of “11 caddy MtN1” medium-term notes could not be cashed on time. The other was that the company was suspected of fraud and was investigated by the CSRC. Subsequently, the company’s bank accounts were frozen, lawsuits, regulatory letters and attention letters followed. After the company’s senior executives took office in 2017, since March 2018, the chairman, director, secretary, supervisor, securities representative and other personnel left the company successively, totaling more than 10 people. < / P > < p > on June 29, 2018, Kaidi ecology issued an audit report of “unable to express opinions” due to its 2017 annual financial report, and the company’s shares were “delisted risk warning” by Shenzhen Stock Exchange, starting from July 2, 2018. < / P > < p > in 2018, the operating income of Kaidi ecology decreased sharply to 2.404 billion yuan, and the net profit loss attributable to the parent company after deducting non-profit expanded to 4.877 billion yuan. < p > < p > on May 13, 2019, Kaidi ecology was suspended from listing. Although the company began to reduce the size of the self rescue plan, but ultimately did not succeed in self-help, can only choose judicial restructuring. < p > < p > on May 12, 2020, Kaidi ecology announced that China Securities Regulatory Commission (CSRC) decided to ban Chen Yilong, the then chairman of the board of directors, from the securities market for 10 years, and Tang Xiuli, the then chief financial officer, for five years. On September 10, Kaidi ecology announced that due to the difficulty in capital turnover, the company has failed to pay off the overdue debts totaling about 18.44 billion yuan. The latest audited net assets of the company were 1.914 billion yuan, and the proportion of overdue debts to the latest audited net assets was 963.3%. < p > < p > on October 15, Kaidi ecology still did not get out of the deficit predicament. According to the company’s performance forecast, the net loss in the first three quarters was 1.106 billion yuan to 1.327 billion yuan, compared with 1.424 billion yuan in the same period last year. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. This article is for reference only. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.