A failed auction announcement has thrust Hainan Haiyao Co.,Ltd. (000566) into the spotlight. From September 22-23, 124 million shares (representing 9.54% of total share capital) held by the company's second-largest shareholder Nanfang Tongzheng were publicly auctioned on JD's judicial auction platform, but failed due to no bidders. The starting price was set at 5.682 yuan per share, which could have raised over 700 million yuan if successful, but the market expressed its concerns about the company's fundamentals through "silence."
**Behind the Failed Auction: Market Confidence Loss and Stock Price Inversion**
The auction failure was not without warning signs. During the critical auction period (September 19-23), Hainan Haiyao's stock price declined continuously, falling from 5.88 yuan to 5.57 yuan at closing, ultimately dropping below the starting bid price. The failed auction reflects investors' deep concerns about the company's legacy governance issues, continuous losses, and high debt levels.
Nanfang Tongzheng, as an important shareholder, has all its holdings under pledge and frozen status, and has been subject to multiple court freezing orders since 2021 due to contract disputes. The failed auction shares account for as much as 92.86% of its total holdings, highlighting the capital chain crisis at the shareholder level. According to judicial procedures, after the first auction fails, the court will organize a second auction within 60 days. If it fails again, the equity may be disposed of at an even lower discounted price, further suppressing the stock price.
**Persistent Governance Issues: Fund Occupation and State-Owned Capital Takeover Fails to Reverse Decline**
Hainan Haiyao's difficulties can be traced back to the era of former actual controller Liu Xicheng. Between 2018 and 2020, the company's non-operating fund occupation through related parties accumulated to 748 million yuan, which was not disclosed in annual reports, leading to severe cash flow deterioration. Although Xinxing Jihua Group took over 22.23% of the company's shares through Huatong Industry in 2020, with actual control transferring to the State-owned Assets Supervision and Administration Commission of the State Council, historical problems have been difficult to eradicate.
After the state-owned capital takeover, although the company promoted the disposal of "two non-two assets" and cost reduction, raising 61.56 million yuan through asset transfers in 2024 and achieving partial litigation recoveries, the operational fundamentals have not fundamentally improved. From 2017 to 2024, the company's non-recurring net profit has been negative for eight consecutive years, with attributable net losses reaching 1.525 billion yuan in 2024.
**Intensifying Financial Crisis: Plummeting Net Assets, Delisting Risk Looming**
The 2025 interim report shows Hainan Haiyao's revenue of 450 million yuan, down 24.12% year-on-year; attributable net loss of 158 million yuan, though narrowed compared to the same period last year, mainly due to compressed selling expenses rather than improved business cash-generating capability.
More severely, the company's asset-liability ratio has climbed to 93.01%, with high short-term debt repayment risks; net assets per share plummeted from 1.44 yuan in the same period of 2024 to 0.28 yuan, less than 30 cents. According to the new delisting rules under the "New Nine Articles," if a company suffers losses for three consecutive years with negative net assets, it will trigger delisting conditions. Based on the current net assets per share of 0.28 yuan, another loss of approximately 363 million yuan could lead to delisting.
**Conclusion: Failed Auction Is Just the Beginning, Transformation Road Remains Long**
The failed auction of Hainan Haiyao is not only a manifestation of the shareholder-level capital crisis, but also a concentrated outbreak of corporate governance chronic diseases, financial difficulties, and market confidence collapse. Under the pressure of new delisting rules and net assets approaching negative territory, if the company cannot quickly achieve asset restructuring, business transformation, or debt resolution, this veteran pharmaceutical company's capital market journey may become increasingly difficult.
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