Jingwei Textile Machinery (000666) chose to take the initiative to delist, and the delisting arrangements have been finalized. On October 24, the Shenzhen Stock Exchange announced that it decided to terminate the listing of Jingwei Textile Machinery shares.
According to an announcement from the Shenzhen Stock Exchange, Jingwei Textile Machinery held an extraordinary general meeting of shareholders on September 15, 2023, to review and approve the proposal related to the voluntary termination of listing, and submitted application materials for termination of listing to the Exchange. The application for delisting of the above-mentioned stocks has been reviewed and approved by the Exchange’s Listing Review Committee.
According to the relevant provisions of Articles 9.7.1 and 9.7.9 of the Shenzhen Stock Exchange’s “Stock Listing Rules (Revised in August 2023)” and the deliberation opinions of the Shenzhen Stock Exchange’s Listing Review Committee, the Shenzhen Stock Exchange decided to terminate the listing of Jingwei Textile Machinery’s stocks. According to the provisions of Article 9.7.11 of the Exchange’s “Stock Listing Rules (Revised in August 2023)”, Jingwei Textile Machinery’s stocks will be delisted within five trading days from the date when the Shenzhen Stock Exchange announces the decision to terminate listing.
As one of the earliest listed textile machinery companies in China, Jingwei Textile Machinery is mainly engaged in textile machinery and also operates financial trust business. The company is the world’s leading supplier of full-process complete sets of cotton textile equipment. Its products cover spinning, weaving, twisting, chemical fibers and special parts. Among them, the intelligent full-process spinning system and digital twisting system have become globally competitive. Its subsidiary Zhongrong International Trust Co., Ltd. (hereinafter referred to as “Zhongrong Trust”) is engaged in trust business. The listed company is its largest shareholder, with a shareholding ratio of 37.47%.
In the first quarter of this year, Jingwei Textile Machinery’s revenue was 2.518 billion yuan, down 11.79% year-on-year, and net profit was 97.48 million yuan, down 28.32% year-on-year. Before this continuous suspension, the total market value of Jingwei Textile Machinery was 6.316 billion yuan.
Looking back on this voluntary delisting arrangement, Jingwei Textile Machinery disclosed on the evening of August 29 that according to relevant regulations, through shareholders China Hengtian Group Co., Ltd. (hereinafter referred to as “Hengtian Group”) and China Hengtian Holdings Co., Ltd. (referred to as “Hengtian Holdings”) proposed, and was approved by the company’s board of directors, a decision was made to voluntarily withdraw the shares from trading on the Shenzhen Stock Exchange in the form of a shareholders’ meeting resolution, and apply for transfer on the National Equities Exchange and Quotations. The reason given by the company for delisting is that due to market changes, the company’s operations are facing significant uncertainty.
According to Jingwei Textile Machinery’s disclosure, after the general meeting of shareholders approves the voluntary termination of listing, Hengtian Group will pay all A-share shareholders registered on the equity registration date except Hengtian Group and China Textile Machinery (Group) Co., Ltd. (referred to as “Textile Machinery Group”). Cash options are provided with an exercise price of 9.24 yuan/share.
On September 15, Jingwei Textile Machinery’s second extraordinary general meeting of shareholders in 2023 reviewed and approved relevant proposals such as voluntarily terminating the company’s stock listing through resolutions of the general meeting of shareholders. The exercise period for cash option declarations related to the active termination of the company’s stock listing has ended, and the settlement of currently valid cash options has been completed.
On the evening of September 19, Jingwei Textile Machinery announced that the company had submitted an application to terminate the listing of its stocks to the Shenzhen Stock Exchange, and the Shenzhen Stock Exchange had officially accepted it. As of the market close on May 10, 2023, the number of A-share shareholders registered in Jingwei Textile Machinery was 39,000.
Although the number of A-share companies delisting has been increasing in recent years, relatively speaking, cases of voluntary termination of listing are rare. Only a few companies, including Aerospace Communications, Shanghai Putian, and Erzhe Heavy Equipment Co., Ltd., have actually taken the initiative to delist.
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