Study On The Failure Of Self Rescue Before Compulsory Delisting Of Listed

In recent years,with the continuous development and improvement of my country’s securities market,relevant regulatory authorities have paid more and more attention to the improvement of the delisting system.An effective delisting mechanism can achieve the function of survival of the fittest,eliminate poorly-operated companies and improve the quality of listed companies in the capital market.The Hong Kong Stock Exchange of my country was established in 2000 and has been in development for more than 20 years,and the listing rules formulated by it are gradually improving.In 2018,my country’s Hong Kong Stock Exchange increased the listing rules related to delisting standards,limiting the suspension time of listed companies,enabling non-performing companies to withdraw from the market in a timely manner,and optimizing the allocation of resources.Since the implementation of the new system,the number of listed companies compulsory delisting on the Hong Kong Stock Exchange in my country has gradually increased each year.From a handful of initial listings to 31 new companies in 2020,many companies still cannot resume trading through various remedial measures,and are finally forced to withdraw from the market.This article selects China Huiyuan Juice Group Limited(hereinafter referred to as“Huiyuan Juice”)as a case study.Huiyuan juice is applicable to the delisting standard newly issued by China’s Hong Kong Stock Exchange in 2018.It failed to reach the resumption conditions within the limited time of 18 months,resulting in forced delisting.Huiyuan Juice,as a well-known national juice brand,founder Zhu Xinli was once known as the king of juice,but now there are negative situations such as heavy debts and non-compliance disclosure of related loans.Although Huiyuan Juice took many remedial measures,it was still unable to turn the tide,and finally failed to save itself,resulting in forced delisting.This paper analyzes Huiyuan Juice’s self-rescue measures,causes and impacts of failure to rescue themselves.On the one hand,it helps to improve the case studies related to the self-rescue measures before the mandatory delisting,and on the other hand,it can also improve the operating conditions of other listed companies and investors to conduct more scientific investment decisions provide some references.This article is mainly divided into the following five parts:The first part is the introduction and related theoretical basis.At first this part introduces the research background and research significance of this thesis,and summarizes the literature from three aspects: self-rescue measures before the forced delisting of listed companies,the reasons for the forced delisting,and the impact.Ideas and methods,and the basic framework of this article.Secondly,it expounds the concept of forced delisting of listed companies,the delisting process of Hong Kong Stock Exchange in my country,the self-rescue measures of listed companies before the forced delisting and the reasons for the forced delisting.Finally,the relevant theories are summarized to lay a theoretical foundation for the subsequent analysis.The second part is the case introduction of the forced delisting of Huiyuan Juice.Firstly,it explains the basic situation of Huiyuan Juice from the three levels of company profile,governance structure and operating status;secondly,it introduces in detail the entire process of Huiyuan Juice’s compulsory delisting,including the two stages of entering the suspension procedure and being terminated by the Hong Kong Stock Exchange;Finally,the reasons for the forced delisting of Huiyuan Juice are analyzed.The third part is divided into self-rescue measures before forced delisting.Firstly,the strategic self-help measures of Huiyuan Juice are expounded,mainly including joint venture with strategic investors and advertising to attract customers;Secondly,the financial self-rescue measures of Huiyuan Juice,mainly including selling assets and reducing personnel expenses;and finally,the self-rescue measures of Huiyuan Juice are recovering illegal loans and interest and optimizing the management structure.The fourth part is the cause and influence analysis of the self-rescue failure before Huiyuan juice forced delisting.First,analyze from the external level,mainly including intensified industry competition,increasingly stricter policies,and decline in credit rating,which has led to a decline in financing capacity;second,analyze from the internal level,including failure to reach consensus with strategic investors and excessive reliance on external financing This led to the outbreak of the debt crisis,weak growth in the main business leading to insufficient profits,high concentration of equity,resulting in management confusion and failure of internal control;Finally,it analyzes the impact of Huiyuan Juice self rescue failure on the company itself and its minority shareholders.The fifth part is the conclusion and enlightenment of the case study.Firstly,based on the analysis of self rescue measures,failure causes and impact of Huiyuan juice before forced delisting,it is concluded that the change of external environment is the external cause of Huiyuan Juice’s self rescue failure,and insufficient risk control and corporate governance failure are the fundamental causes of Huiyuan Juice’s self rescue failure,the failure of Huiyuan Juice self rescue weakens the company’s financing ability and damages the interests of small and medium-sized investors.Secondly,the corresponding enlightenment is drawn:First,listed companies should formulate reasonable development strategies;Second,listed companies should strengthen fund management and reduce financial risks;Third,listed companies should improve the corporate governance mechanism and disclose information in compliance;Fourth,small and medium-sized investors should establish a correct investment view.