.jpg)
On May 16, 2017, Shenzhen Stock Exchange (SZSE) made a rule-based decision that the listing of Shenzhen Century Plaza Hotel Co., Ltd. (hereinafter referred to as “the Company”) will be terminated.
Due to the against-regulation provision of guarantee to related parties, the Company had received audit reports with disclaimers of opinion on its financial statements in two consecutive accounting years of 2013 and 2014 and had its listing being suspended since May 21, 2015. After disclosing the 2015 annual report, the Company submitted an application for listing resumption which was officially accepted by SZSE on May 9, 2016. Thereupon, SZSE started review-related work according to laws and regulations and developed investigation with regard to some key issues of concern including compliance of accounting treatment for golf property lease income, adequacy of estimated liability provision, and authenticity of subsidiaries’ performance.
On April 25, 2017, SZSE received a statement issued by the Company’s 2015 annual report auditor and indicating a negative value of the Company’s adjusted 2015 net profit after deducting non-recurring profit and loss. On April 28, 2017, the sponsor for the Company’s listing resumption application revoked its sponsor files. On May 15, 2017, SZSE’s Listing Committee deliberated the Company’s application for listing resumption and believed that Company does not meet the requirement of application for resumption of listing stated in Item (1) of Article 14.2.1 of the Rules Governing Listing of Stocks on Shenzhen Stock Exchange and that the Company’s application material does not conform to Article 14.2.15 thereof. Therefore, the Company’s application for resumption of listing is not approved by SZSE’s Listing Committee.
According to Article 14.2.17, and Item (27) of Article 14.4.1, Article 14.4.1 of the Rules Governing Listing of Stocks on Shenzhen Stock Exchange，SZSE made the decision of the Company’s stock delisting.
The Company will enter a delisting transitional period from May 24, 2017 for 30 trading days and its stock abbreviation will be changed into Delisting Century Plaza Hotel. Its share price fluctuation restriction will be 10%. On the trading day right after the expiry of the delisting transitional period, the Company’s stock will be delisted. Investors are suggested to be aware of the risks and invest reasonably.
Before delisting, the Company is still a listed unit of SZSE. During the delisting transitional period, the Company should strictly follow the Rules Governing Listing of Stocks on Shenzhen Stock Exchange and provide full disclosure of its trading arrangement and the delisting risk. In addition, the Company and interested information disclosure obligor should perform their disclosure obligation and ensure all the disclosed information is true, accurate and complete.
According to relevant rules, the Company’s share will be listed on National Equities Exchange and Quotations within 45 trading days after the expiry of the delisting transitional period. SZSE will urge the Company to fully disclose the arrangement on handling rights confirmation, registration and trusteeship for investors, the Company’s contact method and the channel to learn about the Company so as to protect investors’ rights and interests.
Furthermore, after delisting, the Company is still a company limited by shares and should abide by the Company Law and other regulations to keep performing its obligations and assuming social responsibility as a public company and ensure that the rights legally enjoyed by shareholders will not be changed due to its listing status change.
An SZSE principal said the system for delisting of listed companies is an important fundamental mechanism that plays significant roles in optimizing resource allocation, promoting survival of the fittest, enhancing listed units’ quality and protecting investors’ legitimate rights and interest. In recent years, SZSE has been seriously implementing the rule-based strict supervision, performing its front-line regulation responsibility, strictly specifying delisting subjects’ responsibility and constantly improving supporting delisting systems. With regard to companies that meet the delisting conditions, SZSE has firmly practiced the “found-and-delisted” principle. Under the leadership of China Securities Regulation Commission, SZSE will keep stringent implementation and constant improvement of the delisting system and push forward normalization of the system to form the market order of “orderly listing and delisting” and driving the long-term sound development of a multi-tiered capital market system.
