Say goodbye to A shares
On June 23, the delisted Prima China ended the last day of trading in A shares. That night, the company issued an announcement stating that as of June 23, the company’s stocks had been traded for fifteen trading days during the delisting arrangement period, and the delisting arrangement period had ended. The company’s shares will be delisted from the Shanghai Stock Exchange on June 30. This means that Xiamen China Electronics, which has been listed for 27 years, will bid farewell to A shares.
On the last trading day, the delisted Xoceco once again staged a “roller coaster” trend. It dived sharply in the early trading and once fell to the limit, but rebounded strongly in the afternoon and hit the daily limit for a time. The closing price was fixed at 0.6 yuan per share, and the final market value was 314 million yuan.
After entering the delisting consolidation period, the stock price of Xoceco, which was delisted, soared and plummeted. On the first day of the delisting consolidation period, it plummeted by nearly 90%, with a minimum drop of 0.35 yuan. But then 7 days and 6 boards rebounded strongly, and the stock price continued to fluctuate violently.
Image source: company announcement
It is worth noting that in July last year, the company’s stock price was also wildly hyped, and the 12-day board soared by more than 75% in 14 days. But in less than a year, the company’s share price has shrunk by nearly 90% from last year’s high.
The road to delisting
In recent years, Xiamen China Electronics has been on the verge of delisting. From 2018 to 2020, the company’s financial report has been issued a non-standard audit report for three consecutive years, and it is believed that there are major uncertainties in the company’s continued operation.
Since the audited net profit in 2020 is negative and the operating income is less than 100 million yuan, the company’s shares will be issued a delisting risk warning from May 6, 2021.
On April 29, 2022, the 2021 annual report disclosed by the company and the “Special Verification Opinions on the Deduction of Xiamen Overseas Chinese Electronics Co., Ltd.’s 2021 Operating Income” issued by the annual audit accountant showed that the company’s non-recurring gains and losses after deducting non-recurring gains and losses. The net profit was -6.2377 million yuan, the operating income was 152 million yuan, and the amount after deducting the income unrelated to the main business or without commercial substance was zero yuan.
The above circumstances belong to the termination of listing as stipulated in Article 9.3.11 of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. According to the relevant regulations of the Shanghai Stock Exchange, upon review by the Listing Committee of the Shanghai Stock Exchange, the Shanghai Stock Exchange has decided to terminate the listing of the company’s shares.
The fall of the color TV giant
According to the data, Xoce Electronics was founded in 1985 and listed on the Shanghai Stock Exchange in 1995. It is the first plasma device in China.televisionThe manufacturer is also the first company to transform from CRT TVs (old-fashioned picture tube TVs) to flat-panel TVs. It was also a leading brand and iconic enterprise of high-end color TVs in China.
In its heyday, well-known actor Chen Daoming was the spokesperson of the company. The classic slogan “With Prima Plasma, I really want to live another 500 years” is deeply rooted in the hearts of the people. In 2008, the brand value of “Xiahua” was as high as 11.255 billion yuan.
But times are changing. At the end of the last century, the company launched a diversified expansion strategy and entered a large-scalecell phone, monitors, computers and other fields, but all ended in failure due to poor management. On the other hand, the increasingly fierce color TV price war has intensified. After entering 2000, the company suffered losses for many years, and the highest loss in 2008 exceeded 1 billion yuan. In order to “protect the shell” for survival, the company was once reduced to living by selling factories.
In April 2014, Xoceco Electronics officially announced its withdrawal from the TV production business. In 2017, the “Xoceco” brand, which was once worth 10 billion yuan, was also forced to sell it at a low price of 12 million yuan. In the following years, the company has successively staged dazzling reorganization plans, targeting popular fields such as Internet finance, big data, and TMT, but in the end, they all ended in vain, and the operating performance continued to deteriorate.
