Group 1 - The core viewpoint of the article highlights the ongoing reform of the A-share delisting system, which is expected to enhance the quality of the capital market and promote a healthy ecosystem of "survival of the fittest" [1][3][9] - As of December 30, 2025, a total of 31 A-share listed companies have been delisted, primarily due to financial issues, trading violations, major illegal activities, and voluntary delisting [1][3][6] - The delisting process has shifted towards a diversified model, with a focus on mandatory delisting and an acceleration of voluntary delisting [3][6] Group 2 - The year 2025 has seen a significant decrease in the number of delisted companies compared to previous years, with 21 fewer delistings than in 2024 [6] - The environmental protection industry has shown a concentration of delisting cases, with two companies, *ST Xulan and *ST Yuancheng, being delisted due to their stock prices falling below par value [6] - Recent cases of delisting include Guandao Tui, which was forced to delist due to major violations, marking the first such case since the establishment of the Beijing Stock Exchange [8] Group 3 - The regulatory authorities are emphasizing a "zero tolerance" approach to delisting, ensuring that companies that should be delisted are indeed removed from the market [9] - Investor protection measures are being strengthened, with new regulations proposed to safeguard investors' interests during the delisting process [9]

Core Viewpoint - The company, through its wholly-owned subsidiary, has initiated a lawsuit concerning a construction contract dispute, with the amount in question being approximately 122.56 million yuan, which represents 10.12% of the company's audited net assets [2][3]. Group 1: Lawsuit Details - The lawsuit has been accepted by the People's Court of Xingtai Economic Development Zone in Hebei Province and has not yet gone to trial [2]. - The plaintiff in this case is Suzhou Industrial Park Landscape Greening Engineering Co., Ltd., a wholly-owned subsidiary of the company [2]. - The defendants include Dongxu Lantian Ecological Environmental Technology Co., Ltd., China Energy Construction Group Southern Investment Co., Ltd., and Southern Construction Xingtai Landscape Construction Co., Ltd. [2]. Group 2: Financial Implications - The total amount involved in the lawsuit is 122,557,486.08 yuan, excluding late payment interest and penalties [2][3]. - The company has already received 149,899,000 yuan of the total contract value of 272,456,486.08 yuan, leaving a remaining balance of 122,557,486.08 yuan unpaid [3]. - The company will assess the impact of the lawsuit on its profits based on accounting standards and the progress of the case, with final accounting treatment to be determined after the annual audit [2][4]. Group 3: Legal Actions and Requests - The company requests the court to order Dongxu Lantian to pay the outstanding amount along with overdue interest calculated at 1.95 times the current bank LPR from July 1, 2021, until the payment is made [3]. - Additionally, the company seeks to hold Southern Construction and Xingtai Construction liable for the unpaid amount within the scope of the contract [3]. - The company also requests that the litigation costs be borne by the defendants [3]. Group 4: Other Legal Matters - As of the announcement date, the company and its subsidiaries have not identified any other significant litigation or arbitration matters that have not been disclosed, particularly those involving amounts exceeding 10% of the company's audited net assets [4].

Core Viewpoint - The company is involved in a legal dispute regarding a construction contract, with a claim amounting to 123 million yuan, which represents 10.12% of its latest audited net assets [1] Summary by Relevant Sections - **Legal Proceedings** The company's wholly-owned subsidiary, Park Landscape Company, has had its construction contract dispute with Dongxu Lantian, Southern Construction, and Xingtai Construction accepted by the People's Court of Xingtai Economic Development Zone in Hebei Province, with the case yet to be heard [1] - **Financial Implications** The disputed amount is 123 million yuan, excluding delayed payment interest and penalties. The Park Landscape Company has completed the project as per the contract, with a total settlement amount of 272 million yuan, of which 150 million yuan has been received, leaving 123 million yuan outstanding [1] - **Claims and Responsibilities** The company is seeking a court order for Dongxu Lantian to pay the project funds and interest, while the other two parties are also held accountable within the scope of the outstanding payments, including the responsibility for litigation costs [1] - **Profit Impact Uncertainty** The impact of this lawsuit on the company's current profits remains uncertain [1]

Group 1 - The legal representative of Dongxu Lantian New Energy Co., Ltd. has changed from Zhao Yanjun to Cheng Ping [1] - Dongxu Lantian was established in 1982 and is located in Shenzhen, primarily engaged in wholesale [1] - The company has a registered capital of 1,486.87387 million RMB and a paid-in capital of 1,486.87387 million RMB [1] Group 2 - Dongxu Lantian has invested in a total of 72 enterprises [1] - The company has participated in 142 bidding projects [1] - In terms of intellectual property, Dongxu Lantian holds 22 trademark registrations and 174 patents, along with 47 administrative licenses [1]

Core Insights - The photovoltaic sector is experiencing significant growth, driven by the increasing market share of large-sized battery products and a decline in solar power generation costs, alongside a global green recovery [1][2] - The National Energy Administration reported that renewable energy accounted for 80% of new power generation capacity in the first half of 2022, with an addition of 54.75 million kilowatts [1][2] Group 1: Industry Trends - The photovoltaic industry is witnessing a robust demand growth, supported by the continuous expansion of renewable energy installed capacity and improvements in technology [2][3] - The government emphasizes the importance of enhancing energy resource supply and planning for a renewable energy consumption system to address the challenges of energy waste [2] Group 2: Company Developments - Dongxu Blue Sky has focused on technological innovation to build a clean, low-carbon, safe, and efficient energy system, with a significant investment in photovoltaic and wind power projects [2][3] - In 2021, Dongxu Blue Sky's new energy business generated revenue of 2.275 billion yuan, accounting for nearly 60% of total revenue, reflecting a 68.5% increase from the previous year [3] - The company has recently launched high-efficiency photovoltaic modules with power ratings exceeding 670W and conversion efficiencies of up to 21.6%, enhancing its competitive edge in the market [3]

Core Insights - The rise and fall of the "Dongxu System" serves as a cautionary tale in the history of China's capital markets, marked by financial fraud and debt crises that led to significant regulatory penalties and the eventual collapse of its companies [1][14]. Company Overview - The "Dongxu System" was founded by Li Zhaoting in 1997, initially focusing on CRT glass manufacturing before transitioning to LCD glass substrates, benefiting from government support [3][4]. - Dongxu Group became a leading player in the LCD glass substrate industry, with its subsidiary Dongxu Optoelectronics (000413.SZ) going public in 2011 and reaching a market capitalization exceeding 100 billion yuan [3][4][5]. Financial Misconduct - A systematic financial fraud case from 2015 to 2019 involved inflating revenues by 645.85 billion yuan and profits by 207.83 billion yuan, leading to a record fine of 16.6 billion yuan from the Hebei Securities Regulatory Bureau [1][12][13]. - Dongxu Group's financial health deteriorated significantly, with cumulative losses of 520.27 billion yuan from 2019 to 2023, and a debt-to-asset ratio of approximately 84.86% as of June 2024 [8][10]. Regulatory Actions - The group faced multiple regulatory penalties, including investigations for information disclosure violations and non-compliance with financial reporting [11][12][13]. - Dongxu Optoelectronics was delisted from the stock market after its share price fell below 1 yuan for 20 consecutive trading days, while Dongxu Lantian was also delisted in April 2025 [11][12]. Asset Recovery Potential - Despite the collapse, there are indications that some of Dongxu Group's optical assets may still hold value, with local state-owned enterprises assessing the disposal value of related assets [2][15]. - The glass substrate industry remains critical, with significant demand in China and a low domestic production rate for high-generation lines, suggesting potential for future growth and recovery [16][17]. Project Developments - Dongxu Group has initiated several projects in various regions, including a significant investment in the Qingdao Optoelectronic Industry Park, which aims to enhance domestic production capabilities for display materials [18][20]. - However, some projects have faced delays or have stalled, indicating ongoing challenges in funding and operational capacity [21][22].

Core Viewpoint - The Shanghai and Shenzhen Stock Exchanges plan to adjust the price fluctuation limit for risk warning stocks from 5% to 10%, aiming to enhance pricing efficiency in the market [2][9]. Group 1: Risk Warning Stocks - Risk warning stocks include "*ST" and "ST" stocks, which are subject to trading restrictions due to financial irregularities that may lead to forced delisting [2]. - As of July 2, there are 99 "*ST" stocks and 74 "ST" stocks in the main boards of the Shanghai and Shenzhen markets [2]. - "*ST" stocks have a higher risk of delisting compared to "ST" stocks, with most stocks that were forcibly delisted this year being "*ST" stocks [2]. Group 2: Stock Performance - Stocks that received a "*ST" designation often experience significant price declines prior to delisting, with examples showing price drops between 75% and 92% in the year leading up to their delisting [2]. - For instance, after being designated as "*ST", Taihe Water's stock price fell by 20% in the month prior to the announcement and dropped 9.54% on the announcement day [3]. - Highong Co. transitioned from "ST" to "*ST" in April 2024, with its stock price declining by 48% over the year and an additional 9% from the beginning of the year to July 2 [4]. Group 3: Market Implications - The adjustment of the fluctuation limit to 10% means that if a company's fundamentals improve, its stock price can rise more quickly, and conversely, if the fundamentals worsen, the stock price can fall rapidly, potentially leading to faster delisting [9]. - Experts advise that ordinary investors should avoid "*ST" and "ST" stocks due to their inherent risks and historical performance trends [9].

Core Viewpoint - The case of Dongxu Group serves as a significant warning for companies regarding the importance of risk management and internal controls, highlighting that neglecting these aspects can lead to severe consequences, including substantial financial penalties and market exclusion [4][6]. Financial Performance and Crisis Trajectory - Dongxu Group's financial data revealed a troubling crisis trajectory, with cash reserves evaporating by nearly 50 billion yuan and other receivables surging from 10.2 billion yuan to 65.9 billion yuan, an increase of 55.7 billion yuan [3]. - The group reported revenue of 34.4 billion yuan but incurred a net loss of 32.9 billion yuan, with its two listed companies suffering losses for three consecutive years from 2020 to 2022 [3][4]. Risk Management Failures - The root cause of Dongxu's downfall was its inadequate risk management, characterized by aggressive and blind expansion across multiple industries without a corresponding enhancement in internal controls and risk identification capabilities [4][5]. - The financial fraud exposed within the company exemplified a lack of risk awareness and failure in internal controls [4]. Importance of Risk Control Framework - The book "Three Lines of Defense in Enterprise Risk Management" emphasizes that while development is crucial, neglecting safety can lead to irreversible damage, making risk management a core competitive advantage [4][6]. - Companies must elevate risk management to a strategic priority, establishing a systematic risk management framework to avoid repeating Dongxu's mistakes [4][6]. Recommendations for Effective Risk Management - The highest management must recognize the strategic value of risk control and integrate it into the company's top-level design, allocating necessary resources [5]. - A comprehensive risk management mechanism should be established, covering risk identification, assessment, response, monitoring, and continuous improvement [5]. - A multi-layered defense system should be constructed, with clear responsibilities and collaboration among business units, risk management departments, and audit functions to ensure effective risk control [5][6].

Group 1 - Since May, several companies including *ST Zhongcheng, *ST Renle, *ST Hengli, and *ST Gongzhi have announced receipt of termination of listing advance notice, indicating a trend of companies leaving the capital market [1][3] - As of May 12, 2025, a total of 10 companies have received termination of listing advance notices from the Shanghai and Shenzhen Stock Exchanges, with additional companies like *ST Puli and *ST Xulan also facing similar fates [1][3] - The new delisting regulations have been implemented, leading to the first annual report season under these rules, resulting in multiple companies being warned of delisting risks and several directly delisted [5] Group 2 - *ST Renle reported a net asset of -387 million yuan for 2023 and -404 million yuan for 2024, triggering termination of listing due to financial report issues [3] - *ST Hengli's 2023 net profit was negative, and its revenue was below 100 million yuan, leading to a delisting risk warning [3][4] - *ST Zhongcheng's 2023 net asset was also negative, and its 2024 financial report received a qualified opinion, resulting in a proposed termination of listing [3][4] Group 3 - A total of 9 companies have completed delisting in 2025, with reasons ranging from continuous low stock prices to major violations [6][7] - The companies that have delisted include *ST Meixun, Haitong Securities, and *ST Boxin, among others, with various reasons for their delisting [7][8] - The trend indicates a significant number of companies facing financial difficulties and regulatory challenges, leading to increased scrutiny and potential delisting [10] Group 4 - The Beijing Stock Exchange may see its first delisted company, with Guandao Digital and Yun Chuang Data facing delisting risks due to audit issues [9][10] - Both companies have received audit opinions that could lead to termination of listing if they continue to meet financial delisting criteria in 2025 [10] - A total of 96 companies in the A-share market have been warned of delisting risks due to various financial issues, indicating a broader trend of financial instability among listed companies [10]

Core Points - Dongxu Lantian New Energy Co., Ltd. has received a decision from the Shenzhen Stock Exchange to terminate its stock listing due to the stock price being below 1 yuan for twenty consecutive trading days from December 31, 2024, to March 31, 2025 [2][15][16] - The stock will be delisted on April 30, 2025, and will not enter a delisting adjustment period [2][5][15] - The company has appointed Changcheng Guorui Securities Co., Ltd. as its sponsor broker to manage the transfer of shares after delisting [11][12][16] Summary by Sections Termination of Listing - The stock type is RMB ordinary shares, with the stock code 000040 and abbreviated name *ST Lantian [2][15] - The termination decision is based on the stock's continuous closing price being below 1 yuan, violating the Shenzhen Stock Exchange's listing rules [2][16] - The company has the right to appeal the termination decision within fifteen trading days [3][16] Post-Termination Arrangements - After delisting, the company's shares will be transferred to the National Equities Exchange and Quotations (NEEQ) system for management [4][15] - The company is required to complete necessary arrangements to ensure shares can be traded in the delisting board within forty-five trading days after delisting [15][18] Contact Information - The company's securities department can be contacted at the following addresses and phone numbers: - Shenzhen: 25th Floor, Hongji Building, 1011 Dongmen Middle Road, Luohu District - Beijing: No. 1 Caiyuan Street, Xicheng District - Phone: 0755-82367726, 010-63541562 - Email: sz000040@dongxu.com [5][18]