Summary of Key Points
ST Haiwang (000078.SZ) has received a rectification notice from the Shenzhen Securities Regulatory Bureau due to its controlling shareholder, Haiwang Group, indirectly occupying 1.256 billion yuan of the company's funds. If the funds are not repaid within 10 months, the company will face mandatory delisting. Haiwang Group has promised to repay the amount by the end of 2026 and plans to raise funds through industrial fund cooperation and asset pledging/equity monetization. Meanwhile, ST Haiwang's own operational situation has deteriorated significantly, with a sharp decline in performance, chaotic internal controls, and extremely high guarantee risks. The 149,600 shareholders are facing dual pressures from potential delisting and poor company performance.
I. The 10-Month Delisting Countdown: How Is the Timeline Calculated?
The regulatory authorities have set a strict deadline of 6+2+2:
- Step 1: The company must repay the 1.256 billion yuan within 6 months from the date of receiving the rectification notice (around the end of February 2026).
- Step 2: If the repayment is not made, the Shenzhen Stock Exchange will suspend trading for 2 months.
- Step 3: If the funds are still not repaid after the suspension, the stock will be labeled with a "delisting risk warning" (adding the *ST* designation).
- Step 4: If the issue remains unresolved after another 2 months, the company's listing will be terminated.
In essence, this is a 10-month deadline with strict milestones, and Haiwang Group must accelerate its repayment efforts.
II. How Did the Fund Occupation Occur "Indirectly"?
Although the process was somewhat complex, it essentially boils down to Haiwang Group borrowing money from the listed company:
1. Haiwang Group owes 1.309 billion yuan to Jin Yi Medical and Changchun Gantong (from previous loans over the years).
2. In 2025, these two companies faced loan repayments from banks and pressured Haiwang Group to repay the debts.
3. Haiwang Group intended to sell assets to repay the loans, but the transactions were delayed, resulting in failed monetization attempts.
4. As a result, these two companies requested short-term financial assistance from ST Haiwang, which provided the funds directly to their accounts to repay the bank loans, effectively helping Haiwang Group settle its debts.
5. The more problematic aspect is that this transaction did not go through the company's official approval process and was only disclosed in April of this year, constituting a violation of regulations.
III. Haiwang Group's Repayment Plan: Can It Raise the Necessary Funds?
Haiwang Group has proposed a two-pronged approach, both of which carry uncertainties:
- Industrial Fund Cooperation: The group plans to partner with strategic partners and local government industrial platforms to establish a fund that will purchase Haiwang Group's assets (such as subsidiaries' equity and properties), allowing the group to obtain cash. However, this is still in the negotiation phase, and the timing of implementation is uncertain.
- Asset Pledge/Equity Monetization: Haiwang Group could mortgage its assets to financial institutions or sell other stocks/equities it owns to raise funds. However, the success of these measures depends on whether buyers are found for the assets and whether the institutions are willing to provide loans, so the timing of funding is also uncertain.
In summary, while the plans sound feasible, their success in raising the required 1.256 billion yuan is still uncertain.
IV. ST Haiwang's Own Situation: Is the Business in a Dire State?
Even if the fund occupation issue is resolved, the company faces numerous other problems:
- Performance Decline: Revenue in the first half of the year was 11.3 billion yuan (a 20% decrease), and net profit was -204 million yuan (compared to a profit of 32 million yuan in the same period last year, a sevenfold loss), indicating a continuous decline in core business operations.
- Chaotic Internal Controls: The audit firm issued a negative opinion in 2025, indicating poor internal management and ineffective risk control.
- High Guarantee Risks: The total guarantee balance is 356% of the company's net assets. For example, if the company's net assets are 100 yuan, 356 yuan are allocated for guarantees. In the first half of the year, the company resolved 1.9 billion yuan in illegal guarantees (186% of net assets), meaning it has essentially used all its assets as guarantees. If the guaranteed parties fail to repay, ST Haiwang will bear the consequences.
V. The 140,000 Small and Medium-Sized Shareholders: A Mix of Risk and Hope
- Risks: If the funds are not repaid within 10 months and the company is delisted, the shareholders' shares may become worthless. Even if delisting is avoided, the company's poor performance and high guarantee liabilities will likely suppress stock prices.
- Hope: Regulatory intervention to force repayment (which is crucial for protecting small and medium-sized shareholders) and Haiwang Group's commitment to a repayment timeline could potentially mitigate the delisting risk. However, as long as the funds are not repaid on time, the delisting threat remains.
- Warning: Ordinary investors should be cautious of ST stocks with issues such as fund occupation and poor internal controls, as the risks far outweigh any potential gains.
In summary, ST Haiwang is in a difficult situation, facing both external pressures to repay the borrowed funds and internal problems with its operations. Whether it can turn things around within 10 months or face delisting depends on whether Haiwang Group can successfully raise the required funds. For the small and medium-sized shareholders, these 10 months will undoubtedly be a challenging period.