Baofeng Group Co., Ltd. (Stock Code: 300431, Stock Abbreviation: Baofeng Group) hereby announces the following regarding the risk of suspension of its stock listing. The company and all members of the board guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
Special Reminder:
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As of now, the company has not appointed a Chief Financial Officer or auditing institution, and it is expected that the 2019 annual report cannot be disclosed before June 30, 2020. According to Article 13.1.8 of the Shenzhen Stock Exchange's GEM Listing Rules (November 2018), the company's stock will be suspended from trading starting July 1, 2020, with only one trading day remaining before the suspension. The Shenzhen Stock Exchange will decide whether to suspend the company's stock listing within fifteen trading days after the suspension.
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According to relevant regulations, if a listed company fails to disclose its annual report within two months after the statutory disclosure deadline, the Shenzhen Stock Exchange may decide to suspend the company's stock listing. If the annual report is still not disclosed within one month after the suspension, the Exchange has the right to terminate the company's stock trading. If the company's stock is terminated from listing, it cannot be relisted on the GEM.
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The company is currently under investigation by the China Securities Regulatory Commission and does not meet the conditions for issuing shares to purchase assets. On September 16, 2019, the Shenzhen Stock Exchange publicly reprimanded the company and Mr. Feng Xin. According to relevant regulations, companies publicly reprimanded by the Exchange within the last twelve months are prohibited from issuing securities. Due to the existence of the above circumstances, the company does not meet the regulations for restructuring and relisting.
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As of now, the company's existing employees are unable to prepare the 2019 performance forecast, performance report, and the first quarter performance forecast and report for 2020, and the company cannot disclose these reports as required by relevant rules.
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As of September 30, 2019, the company's consolidated financial statements show a net asset value attributable to the parent company of -63,344.99 million yuan (unaudited), indicating a risk of negative net assets after the audited financial report for the end of 2019. According to relevant regulations, if the audited financial report for 2019 shows negative net assets at the end of the year, the Shenzhen Stock Exchange may decide to suspend the company's stock listing.