Core Viewpoint - ST Hongda (formerly stock code: 002002) officially delisted from A-shares on January 18, 2024, after its stock price fell below the par value of 1 yuan for 20 consecutive trading days, marking the end of its journey in the A-share market [1][4]. Group 1: Company Background - Hongda Xinye, originally Jiangsu Qionghua, was listed on the Shenzhen Stock Exchange on June 25, 2004, and was once a "star stock" in the market, primarily engaged in the production of PVC sheets and boards [3]. - After Guangdong Hongda Xinye Group took over in 2011, the company rebranded and shifted focus to hydrogen energy and new materials, claiming to have built China's first civilian liquid hydrogen plant [4]. Group 2: Financial and Operational Issues - The company faced severe financial difficulties starting around 2021, with the controlling shareholder experiencing a debt crisis that led to significant defaults and litigation, severely impacting the company's liquidity and operations [4][6]. - In September 2023, the company was investigated by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, leading to a collapse in market confidence and a series of trading halts [5][6]. Group 3: Delisting and Aftermath - Following its delisting, Hongda Xinye's stock price continued to plummet, experiencing 36 consecutive trading halts, dropping from 0.58 yuan to a low of 0.12 yuan [1][6]. - In March 2025, nearly a year after delisting, the Jiangsu Securities Regulatory Bureau issued a notice revealing that the company had inflated its revenue by 3.505 billion yuan and profits by 4.078 billion yuan from 2020 to 2023, with severe financial misconduct [6][8]. Group 4: Regulatory Actions and Market Implications - The regulatory authorities imposed fines totaling 57.8 million yuan on Hongda Xinye and eight executives, with the actual controller facing a lifetime ban from the securities market [8]. - The case highlights the ongoing reforms in the A-share delisting system, with 46 companies delisted in 2023 and an increasing focus on diverse delisting types, including those related to financial misconduct [8][12].