This lithium hexafluorophosphate manufacturer may be delisted due to three registrations and stock suspension!

On May 4th, Yan'an Bikang announced that it had received the "Prior Notice" issued by the Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock Exchange").

According to the "Prior Notice", on July 1, 2022, due to the issuance of an audit report that cannot express an opinion on the 2021 financial accounting report, Yan'an Bikang stock trading was subject to delisting risk warning. On April 29, 2023, the first annual report after the delisting risk warning was implemented for stock trading showed that the 2022 financial accounting report of Yan'an Bikang was issued with an audit report that could not express an opinion, touching the situation of stock delisting under relevant regulations of the Shenzhen Stock Exchange.

In addition, the Yan'an Bikang stock has been suspended since its opening on May 4th.

According to relevant regulations, Yan'an Bikang shall submit an application in writing within five trading days from the date of receiving the notification, specifying the specific matters and reasons. If presenting a statement and defense, Yan'an Bikang shall submit the relevant written statement and defense to the Shenzhen Stock Exchange within ten trading days from the date of receiving the notification. Failure to do so shall be deemed as a waiver of the right to hear, state, and defend.

It is understood that Yan'an Bikang has been investigated again by the China Securities Regulatory Commission recently, marking the third time since 2020 that Yan'an Bikang has been investigated by the China Securities Regulatory Commission.

On March 25, 2020, the China Securities Regulatory Commission launched an investigation into Yan'an Bikang on suspicion of illegal and irregular information disclosure. In June of that year, Yan'an Bikang was removed from the Shanghai and Shenzhen 300 ingredients.

In November 2021, due to the illegal use of raised funds, the Shenzhen Stock Exchange issued a punishment decision publicly condemning Yan'an Bikang.

In May 2022, the China Securities Regulatory Commission once again filed an investigation into Yan'an Bikang's suspected illegal and irregular information disclosure behavior.

In September 2022, due to failure to disclose regular reports on time, inaccurate or untimely performance forecast results, the Shenzhen Stock Exchange issued a public condemnation decision against Yan'an Bikang.

In April of this year, Yan'an Bikang was once again investigated by the China Securities Regulatory Commission.

In addition to being deeply involved in the aforementioned turmoil, Yan'an Bikang's performance is also worrying. Since 2020, Yan'an Bikang has suffered significant losses. The losses in 2020, 2021, and 2022 reached 1.089 billion yuan, 822 million yuan, and 1.168 billion yuan respectively.

Regarding the reasons for the performance loss in 2022, Yan'an Bikang stated that due to tight funding and limited external financing, the pharmaceutical industry sector's business has been affected; Due to the long-term shutdown of the invested construction in progress, Yan'an Bikang has made a significant provision for asset impairment losses on the construction in progress; Yan'an Bikang has estimated the collectability of accounts receivable based on an assessment of the customer's current operational situation and debt repayment ability, and has accrued a significant amount of credit impairment losses for accounts receivable; Due to the impact of investor litigation claims, Yan'an Bikang has accrued a significant amount of estimated liabilities.

About Yan'an Bikang

Yan'an Bikang was established in 2002 and listed on the Shenzhen Stock Exchange in December 2015 through backdoor trading. Its main businesses include pharmaceutical commerce, pharmaceutical intermediates, new energy, and more.

Yan'an Bikang's lithium hexafluorophosphate business is carried out by its subsidiary Jiujiu Technology. Jiujiu Technology's main products include lithium hexafluorophosphate, 5,5-dimethylhydantoin, dihydroxymethylhydantoin, benzaldehyde, and sodium trichloropyridine alcohol, which are all recognized as high-tech products in Jiangsu Province. Benzaldehyde is recognized as a national key new product, and sodium trichloropyridine alcohol and lithium hexafluorophosphate are recognized as excellent new products in Jiangsu Province.

The original design capacity of Jiujiujiu Technology's lithium hexafluorophosphate was 5000 tons/year, and the actual production capacity of the product production line has exceeded 6400 tons/year after energy-saving exploration and optimization transformation. On the evening of February 21st, Yan'an Bikang announced that Jiujiujiu Technology plans to invest 2.254 billion yuan to increase the production capacity of 35000 tons of lithium hexafluorophosphate and 10000 tons of sodium hexafluorophosphate, in order to achieve an annual production scale of 50000 tons of hexafluorophosphate. The project is expected to require an additional investment of 2253.7637 million yuan, and was notified by the Nantong Municipal Administrative Approval Bureau on February 20, 2023, regarding the filing of the Jiujiu Technology Expansion Project.