Oriental Huicai Securities (08001) announced that the company received a letter from the Stock Exchange dated December 19, 2023...
According to the Zhitong Finance App, Oriental Huicai Securities (08001) issued an announcement. The company received a letter from the Stock Exchange dated December 19, 2023. The letter was given in accordance with section 9.15 of the GEM listing rules, stating that after considering the following items, the Stock Exchange decided to suspend the company's share trading in accordance with section 9.04 of the GEM listing rules and begin canceling the company's listing status in accordance with section 9.14A (1) of the GEM listing rules:
The Group mainly engages in lending business and underwriting and placement business (together with brokerage business and margin financing business, collectively referred to as “IPO business”); the Group has not acquired any new customers for its lending business in the past three years and has further decided to reduce this business. The current loan portfolio does not generate sufficient cash flow, and the Group has yet to prove that it can obtain sufficient capital to support the operation of the lending business; the IPO business has maintained a very small operating scale and has continued to suffer losses, and the Group's plans to improve this business lack specific details and reliability;
In terms of other business, the asset management business has a short operating history and a very small operating scale. At the same time, plans to develop other new businesses (such as expanding into institutional finance consulting business) are in the early stages and there are no specific details; the Stock Exchange does not believe that the Group's business is substantial; and the Group does not seem to have sufficient assets to support viable and sustainable business operations and the Stock Exchange is not convinced that the Group has sufficient assets to comply with section 17.26 of the GEM listing rules.
According to the letter, based on the decision, the company is required to submit a proposal to resume trading to prove that it has sufficient business operations and asset levels as stipulated in section 17.26 of the GEM listing rules. If the company fails to submit a viable proposal to resume trading, the Stock Exchange will begin to cancel the company's listing status.
The company is still reviewing the letter and is in discussions with the company's legal and financial advisors, and will actively consider requesting that the decision be forwarded to the GEM Listing Committee for review.