Approaching the delisting "red line" *ST Wanfang stock price plummets

New Express News Report by Reporter Tu Bo In recent days, *ST Wanfang (Wanfang Urban Investment Development Co., Ltd.) has seen consecutive daily limit-downs, triggering volatility in the market. Panic selling by investors has been escalating continuously. As of April 1, the company’s share price was 1.27 yuan per share, and its total market value was 395 million yuan. It has remained below 500 million yuan for 13 consecutive trading days. Over the past three months, it has plunged by more than 70%. If the company’s stock’s closing total market value is below 500 million yuan for 20 consecutive trading days, it will fall under a forced delisting scenario related to trading arrangements. The company’s stock will not enter the delisting transition period.

According to the information available, *ST Wanfang is mainly engaged in defense-related business, agricultural business, and businesses such as bio-health. It was listed on the Shenzhen Stock Exchange in 1996, with an issue price of 8.38 yuan per share. The company currently has no actual controller.

In addition to facing a trading-related forced delisting scenario, *ST Wanfang is also exposed to financial-category delisting risks and major-violation forced delisting risks. These are not accidental, but a concentrated outbreak of long-term operational disorder and governance failure. The company’s 2025 performance forecast shows that full-year revenue is expected to be only 200 million-250 million yuan. Its non-GAAP net profit has continued to incur losses, and it has hit the delisting red line of “net profit is negative and revenue is below 300 million yuan” for two consecutive years. Under the new rules of the Shenzhen Stock Exchange, triggering this indicator for two consecutive years will directly result in the termination of listing, with no room for suspension or restoration of listing.

Moreover, the risk of an audit with a non-standard opinion remains high. The 2024 annual report received a modified opinion. It involves uncertainty regarding the recoverability of 17.87 million yuan of investment principal. In all likelihood, the 2025 financial statements will again receive a non-standard opinion, directly triggering the conditions for regulated-category delisting. There are also filing and disclosure violations that have led to a case being filed for investigation. In July 2025, *ST Wanfang was put on file by the China Securities Regulatory Commission for涉嫌 violating information disclosure regulations. Previously, due to major lawsuits and the failure of a subsidiary’s debt to be disclosed in a timely manner, it was issued an admonition by the Jilin Securities Regulatory Bureau and received a notice of criticism from the Shenzhen Stock Exchange. If it is determined that the violations are major, the delisting process will be accelerated.

Under expectations of delisting, *ST Wanfang’s share price has staged a “cliff-like” drop. Over the past year, the share price has fallen from 4.99 yuan to 1.27 yuan, a decline of more than 74%, and the market value has evaporated by more than 1 billion yuan. Since late March, it has seen consecutive daily limit-downs, with the turnover rate remaining high, reflecting small and medium-sized investors fleeing en masse. Data show that as of September 30, 2025, the number of shareholders of *ST Wanfang was 21,500. Lawyer Peng Liu from Shanghai Huzhi Law Firm stated that, based on relevant laws and regulations, investors who bought before July 25, 2025 (including that day) and sold after July 26, 2025 or still held the shares and suffered losses; or those who bought between January 25, 2025 and April 18, 2025 (including that day) and sold after April 19, 2025 or still held the shares and suffered losses, may file claims for compensation.

【Source: New Express News】