Overview of Delisting Situation
Zhengzhou Huajing Diamond Co., Ltd. (hereinafter referred to as "the Company") received an audit report with no opinion for its 2020 financial accounting report. The Company's stock was subject to delisting risk warning starting April 28, 2021, and the issues leading to the no opinion status have not been resolved. On April 30, 2022, the Company disclosed its 2021 annual report on the Giant Tide Information Network, indicating that the audited net assets at the end of 2021 were negative. Consequently, the Company’s stock triggered the delisting provisions under Article 10.3.10 of the Shenzhen Stock Exchange's Growth Enterprise Market Listing Rules (revised in December 2020).
Impact of Delisting on the Company
- Impact on Operations
In recent years, some partner banks and non-bank financial institutions have ceased lending, which has obstructed the Company's financing channels. Additionally, several lawsuits have led to the freezing and sealing of most of the Company's bank account funds, land, and equity investments, resulting in a tight cash flow and risks to its ongoing operations. The delisting may exacerbate these adverse effects. The Company is focused on developing a reasonable operational plan, enhancing internal controls, reducing costs, and improving cash flow while actively resolving debt crises to improve its asset situation.