On November 8, *ST Yuancheng (603388) issued two announcements warning of delisting risks, indicating the company has triggered multiple delisting conditions.

As of November 7, the company's total market capitalization stood at 199 million yuan, having remained below 500 million yuan for 19 consecutive trading days. Even if the stock rises by the daily limit in the next session (excluding full-day suspensions), it will still face mandatory trading-based delisting due to 20 consecutive trading days below the 500 million yuan threshold.

Additionally, the stock closed at 0.61 yuan on November 7, marking 10 straight trading days below 1 yuan. Even if it rallies by the daily limit for the next 10 sessions (excluding suspensions), it will still fail to meet the market cap requirement, triggering delisting. By the close on November 7, *ST Yuancheng’s shares fell 4.69%, with its latest market cap at 200 million yuan.

Under regulatory rules, stocks facing trading-based delisting will not enter a delisting consolidation period. Trading will be suspended the following day, and the exchange will issue a pre-delisting notice within five trading days.

This means *ST Yuancheng is set for mandatory delisting after November 10 due to its prolonged sub-500-million-yuan market cap. Its shares will be suspended pending the exchange’s final decision.

Founded in 1999 and headquartered in Hangzhou, Zhejiang, *ST Yuancheng specializes in large-scale municipal infrastructure, ecological landscaping, pollution control, and high-end tourism projects. Its core businesses include construction, landscaping, planning, seedling sales, tourism operations, and electronic components.

Financially, the company reported revenue of 102 million yuan in the first three quarters of 2025, with a net loss of 143 million yuan. Q3 revenue plunged 54.7% year-on-year to 20.14 million yuan, with a net loss of 16.35 million yuan. The company has struggled with persistent losses—posting net losses of 65.48 million yuan in 2022, 162 million yuan in 2023, and 325 million yuan in 2024.

Its 2024 audit report flagged uncertainties about its ability to continue operations. Beyond trading-based delisting, *ST Yuancheng also faces risks of mandatory delisting due to financial fraud and regulatory violations.

On October 10, 2025, the China Securities Regulatory Commission (CSRC) issued a preliminary penalty notice, alleging: 1. Falsified financials from 2020–2022, including inflated revenue and profits from the Yuelongshan project and unrecorded discrepancies in the Huaiyin project. 2. Misrepresentation in its 2022 private share issuance documents.

These violations may trigger mandatory delisting under stock listing rules. The Zhejiang regulatory bureau proposed fines totaling 37.45 million yuan for the company and 42 million yuan for five executives, including a 28-million-yuan penalty for controlling shareholder and former chairman Zhu Changren, who also faces a 10-year market ban.

*ST Yuancheng acknowledged these issues could lead to delisting. Separately, if its 2025 annual report fails to meet relisting criteria, its shares will be terminated.

The company also grapples with operational uncertainties, overdue fundraising repayments, stock pledges, freezes, liquidations, judicial auctions, and liquidity risks.

(Disclaimer: Information and data are for reference only and do not constitute investment advice. Investors assume all risks.)