What is the reason for the company's delisting?
The reasons for the company's delisting are: continuous loss of performance (more than 3 years), stock price below par value, negative net assets, other non-listing, financial fraud, mergers and acquisitions, etc. Statistics show that there are more companies with continuous losses in performance, which touch on financial delisting indicators and transaction delisting indicators, while fewer companies are delisted due to "absorption and merger".
There are many reasons for the delisting of listed companies, but the most common ones are these three:
1. The performance has been losing money for years. If a listed company has suffered losses continuously in the last three years, its listing shall be suspended. If there is a net profit loss in the first year after the suspension of listing, the trading ownership decides to terminate the listing of shares.
2. The net assets are negative. GEM companies with negative net assets in the last year may be suspended from listing; Stocks that are warned of delisting risk in non-GEM companies may be suspended from listing if their net assets continue to be negative in the first year. If the net assets in the first year after the suspension of listing are negative, the listing may be terminated.
3. If the stock price is lower than the par value for 20 consecutive trading days, and the daily closing price of A shares or B shares of the listed company is lower than the par value for 20 consecutive trading days (excluding the trading days of suspension) (the par value of most A shares and B shares is 1 yuan), the listing will be terminated. If AB shares exist at the same time, the above conditions are met and the withdrawal standard is touched.
Before a stock is delisted, there will be a delisting consolidation period and a delisting consolidation period of 30 trading days. After the consolidation period, the stock will be delisted by the exchange. By then, investors can only enter the national small and medium-sized enterprise share transfer system for trading. For stocks with delisting risk, investors should pay attention to investment risk.
After reading the above introduction, I believe everyone has a further understanding of the reasons for the company's delisting. A company can apply for listing again after delisting, but its success depends on whether it meets the listing conditions.