Simply put, it is the result of the separation of corporate governance and corporate operations. Listed companies separate corporate governance from corporate operation, and the shareholders' meeting, as the investor and the highest authority, forms a governance layer with the board of directors. Entrust the management headed by the general manager to manage and operate the company. In this case, there is a kind of agency risk. That is, when the management fails to meet the requirements of shareholders, it may be fraudulent.
The other situation is the relevant provisions of the Listing Securities Law. When the income is less than100,000 yuan, or the profit is negative for two consecutive years, then you may wear the hat of ST, and you may withdraw from the market before it improves.