*ST Wanfang's Total Market Cap Falls Below 500 Million Yuan for Three Consecutive Days, Facing Multiple Delisting Risks

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Reprinted from China Securities Journal · China Securities Network

China Securities Journal · China Securities Network News (Reporter Song Weidong): On March 18, *ST Wanfang closed at 1.41 yuan per share, with a total market value of 439 million yuan. This is the third consecutive trading day that the company’s total market value has been below 500 million yuan, and delisting risk cannot be ignored. Notably, *ST Wanfang may also face delisting due to financial issues and major illegal violations.

Share price continues to decline

Recently, *ST Wanfang’s stock price has been steadily falling. Wind data shows that since 2026, as of the close on March 18, *ST Wanfang’s stock price has fallen by a total of 69.87%.

On March 16, *ST Wanfang closed at 1.56 yuan per share, with a total market value of 486 million yuan, first falling below 500 million yuan. On March 18, *ST Wanfang hit the limit-down again, with 146,000 sell orders at the limit, and the total trading volume for the day was only 935,000 yuan.

According to regulations, if a company’s stock market capitalization remains below 500 million yuan for twenty consecutive trading days, the Shenzhen Stock Exchange will terminate its listing. Stocks terminated due to trading-related mandatory delisting do not enter the delisting restructuring period.

*ST Wanfang’s business mainly covers agriculture and military industries. Previously released earnings forecasts show that the company expects a net profit attributable to shareholders of -35 million to -50 million yuan in 2025, turning from profit to loss year-on-year.

Regarding the reasons for the expected loss, *ST Wanfang stated that during the reporting period, operational losses increased in the agricultural sector. Based on accounting standards, the company has recognized an impairment of about 5 million yuan on fixed assets of its subsidiary Jilin Wanfang Maijie Agricultural Industry Development Co., Ltd. Additionally, the company’s military industry subsidiary Jiuyao Precision incurred operating losses, and the company has fully impaired the goodwill formed when consolidating Jiuyao Precision, amounting to about 2.42 million yuan.

Facing multiple delisting risks

Currently, *ST Wanfang faces not only trading-related mandatory delisting but also financial and major illegal violations that could lead to delisting.

Specifically, the company expects its main financial indicators for 2025 to be within the following ranges: operating revenue of 200 million to 250 million yuan, net operating revenue after deductions of 150 million to 200 million yuan; total profit loss of 40 million to 55 million yuan; net profit attributable to shareholders of -35 million to -50 million yuan; and net profit attributable to shareholders after non-recurring items of -15 million to -22 million yuan. The company expects total profit, net profit attributable to shareholders, and net profit after non-recurring items to all be negative, with revenue and net revenue after deductions below 300 million yuan. According to regulations, the company’s stock will be delisted due to financial-related delisting circumstances.

Zhongxing Cai Guanghua Certified Public Accountants (Special General Partnership) issued an audit report with an emphasis paragraph for *ST Wanfang’s 2024 financial statements. The issue noted was the uncertainty regarding the recoverability of the company’s other equity instrument investments in Jilin Wanfang Bai’ao Biotechnology Co., Ltd. *ST Wanfang stated that as of now, this uncertainty has not been resolved, and there is still a risk that the 2025 audit report will be issued with an emphasis paragraph. If the 2025 audit report is issued with an emphasis paragraph, the company’s stock will be delisted due to financial issues.

*ST Wanfang received the “Notice of Filing” from the China Securities Regulatory Commission (CSRC) on July 25, 2025, due to suspected information disclosure violations. The CSRC decided to file a case against the company. As of now, the investigation is ongoing, and *ST Wanfang has not received a conclusive opinion or decision regarding the case. If subsequent administrative penalties are imposed by the CSRC and the facts involved meet the criteria for major illegal violations, the company’s stock may be subject to mandatory delisting for major violations.

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