Strictly Work out the Entities’ Responsibility for Delisting -- SZSE Delists Ene-Carbon Stock

Strictly Work out the Entities’ Responsibility for Delisting -- SZSE Delists Ene-Carbon Stock

Strictly Work out the Entities’ Responsibility for Delisting -- SZSE Delists Ene-Carbon Stock

The FINANCIAL -- On May 28, 2018, SZSE decided to terminate the listing of the shares of Ingenious Ene-Carbon New Materials Group Co., Ltd. The company’s shares entered the delisting transitional period on June 5, 2018. As of the Closing Time on July 17, 2018, the 30-trading-day delisting transitional period for the company’s stocks has been ended. According to SZSE’s Rules Governing Share Listing, on the next trading day right after the delisting transitional period, i.e. July 18, SZSE delists the company’s shares.

Continue to strengthen the supervision of information disclosure during the delisting transitional period

Since the Ene-Carbon Delist stock entered the delisting transitional period, SZSE pays close attention to the company’s status quo, market opinions, investor complaints and other information. SZSE continues to urge the company to fulfill its information disclosure obligation in a timely manner and properly manage its relationships with investors. Regarding this issue, SZSE has done the following: First, in view of the termination of the company’s 2017 annual general meeting SZSE urged the company and the attorneys to disclose relevant announcements in a timely manner to avoid affecting the trading during the delisting transitional period and continued to urge the company to hold an extraordinary general meeting when conditions are “ripe”. Second, regarding the company’s shareholding changes, SZSE required it to verify and perform the information disclosure obligation in time. Third, in response to its investor complaints against its unreachable consulting service line, SZSE sent two letters of concern to the company to urge it to properly manage and answer the phone.

The overall trading is smooth and the risk has been released

SZSE pays close attention to the the company’s stock trading on the secondary market and promptly reminds members to strengthen risk warnings, and the company’s stock trading is generally stable. During the delisting transitional period, the company’s share price hit the lower circuit for 18 trading days in a row from RMB5.27/share on the last trading day before listing suspension and then fluctuated between RMB0.7/share and RMB0.9/share. It closed at RMB0.61/share on July 17, 88% down compared to the RMB5.27/share on the last trading day before listing suspension. As a result, the risk of delisting has been released. The cumulative trading volume approximates 885 million shares, with a total trading turnover of about RMB698 million, an average trading price of RMB0.79/share and an interval turnover rate of about 76.60%.

The company’s stock will enter the NEEQ system for listing and transfer

According to the regulations, Ene-Carbon Delisting should have relevant work completed in a timely manner to ensure the entry to the National Equities Exchange and Quotations (hereinafter as “NEEQ”) system for listing and transfer within 45 trading days following the expiration of the delisting transitional period. The company shareholders must re-execute equity confirmation, registration, and custodianship procedures in accordance with relevant regulations so that they can transfer the company’s stock in the NEEQ system. SZSE will urge the company to fully disclose the arrangements on investor equity confirmation, registration, and custodianship, the company’s contact information and the ways for learning about the company, so as to protect the legitimate rights and interests of investors.

SZSE will earnestly undertake the front-line supervision responsibility and strictly work out the entities’ responsibility for the delisting under CSRC’s guidance. On one hand, strict guard will be placed on delisting implementation and any company that triggers the conditions for delisting will be delisted. On the other hand, the implementation system for mandatory delisting due to major violation of laws will be further improved; the delisting index system for delisting due to financial or market factors will be optimized; intensified risk warnings will be put on the high-risk companies with questionable ability of going-concern or with major uncertainties. Likewise, the system foundation will be further reinforced to prevent systemic financial risks and promote healthy and stable development of SZSE’s multi-tiered capital market.