On January 23, Tianjin Zhuolang Information Technology Co., Ltd. (*ST Zhuolang) announced that the company has been delisted due to financial fraud for 5 years. It has become the first A-share listed company to be delisted in 2025.
In the announcement “Notice on the Company’s Stock Entering the Trading Period of Delisting Arrangement” released by *ST Zhuolang on the 23rd, the company stated that it received a self-discipline regulatory decision issued by the Shanghai Stock Exchange on January 22, titled “Decision on the Termination of Listing of Shares of Tianjin Zhuolang Information Technology Co., Ltd.” ([2025] No. 23), in which the Shanghai Stock Exchange decided to terminate the listing of the company’s shares.
The company’s explanation for being delisted was provided in the “Announcement on Receipt of Decision to Terminate Listing of Shares” released on the same day. The reason cited for the delisting was the false disclosures in the annual reports from 2019 to 2023, which triggered the mandatory delisting requirements.
According to the announcement, the start date of the company’s stock entering the delisting arrangement period is February 7, 2025. The trading period is set for 15 trading days, with the expected final trading date being February 27, 2025. The company’s shares will be delisted by the Shanghai Stock Exchange within 5 trading days after the end of the delisting arrangement period, leading to the termination of stock listing.
Thus, *ST Zhuolang has become the first company to be delisted in 2025.
As reported by the IPO Daily of the International Financial Report’s media on January 23, a subsidiary of *ST Zhuolang, Tianjin Zhuolang Technology Development Co., Ltd., falsified sales of servers, software, and system integration services, leading to inflated revenue and profits. The total inflated profits for the years 2019 to 2023 amounted to 2.491528 million yuan, 3.098993 million yuan, 3.386150 million yuan, 3.571319 million yuan, and 0.822545 million yuan, accounting for 33.81%, 7.68%, 41.26%, 86.08%, and 50.27% respectively of the disclosed profits for each period. Over the five years, *ST Zhuolang artificially increased its operating income by 1.815 billion yuan and total profits by 1.337 billion yuan.
The company’s annual reports for the years 2019 to 2023 were found to have false disclosures. Additionally, the falsified operating income for 2021 and 2022 amounted to 9947.428 million yuan, representing 57.85% of the total disclosed annual operating income for the two years. The falsified total profit for these years totaled 6957.469 million yuan, accounting for 56.31% of the total disclosed annual profit for the same period.
In addition, *ST Boxin also announced that as of January 16, 2025, due to the company’s stock price having a total market capitalization lower than 500 million yuan for 20 consecutive trading days, it has triggered conditions for delisting.
Listed company Xingguang Agricultural Machinery expects to incur a total loss ranging from 180 million to 120 million yuan for the fiscal year 2024, with a net loss attributable to the parent company owner ranging from 170 million to 110 million yuan. Adjusted net loss is estimated at 115 million to 147 million yuan, with adjusted operating income ranging from 120 million to 140 million yuan. Following the disclosure of the 2024 annual report, the company’s stock may face the risk of being classified as a delisting risk warning (*ST) as per relevant regulations.
Gauss Bell also indicated that based on preliminary calculations by the company’s finance department, the estimated net profit for the year 2024 is negative and the adjusted operating income is less than 300 million yuan. Following the disclosure of the 2024 annual report, the company’s stock may be subject to the risk of being classified as a delisting risk warning (*ST).