Column｜I’m so Pretty, Why Should I Die So Early?The Map Cannon of a Listed Company Before Its Dying｜Si YiThe story of Zhongneng International Holdings Group Co., Ltd. (number before delisting: 1096, hereinafter referred to as “Zhongneng”) is a classic example of a “zombie stock” that officially passed away on December 16, 2022. The cause of death was the company’s failure to publish its performance within the deadline for many times, resulting in a suspension and delisting of its shares according to Article 6.01A of the Listing Rules.The source of the matter was that Zhongneng was suspended from September 1, 2020, and it took 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, Zhongneng subsequently applied to the Stock Exchange for delisting review and Judicial review, further postponing the death date.In the days leading up to its death, Zhongneng desperately sought help by sending letters to the Legislative Council, the Stock Exchange, and the Securities Regulatory Commission, the China Securities Regulatory Commission, the Office of the Ombudsman, and major media in China and Hong Kong. Unfortunately, these efforts were in vain.The Stock Exchange had good reason for delisting Zhongneng. The company was 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 had been losing money until the day before its death. Moreover, Zhongneng failed to fulfill the resumption guidelines set by the Stock Exchange on or before February 28, 2022, and failed to resume trading. Consequently, 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.The lesson to be learned from this story is that listed companies 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. It is also important to find an appropriate announcement for reference, and to be careful not to leak.
