The Shanghai Stock Exchange's first mandatory delisting of the year has been implemented, with *ST Jinglun reaching the trading delisting threshold.

On the evening of April 3, *ST Jilun (600355) announced that, because the company’s daily closing total market capitalization had remained below 500 million yuan for 20 consecutive trading days, it had officially met the forced delisting criteria for trading-type delisting. The Shanghai Stock Exchange has issued it a “Preliminary Notice of Termination of Listing.” The company’s shares have been suspended from April 7, becoming the first listed company on the Shanghai market to be forcibly delisted in 2026.

From a former “Optics Valley” star enterprise, to now quietly saying goodbye to the A-share market, the end of *ST Jilun is driven by the compounded effects of a seven-year stretch of massive performance losses, failure of internal controls, and multiple instances of regulatory violations and warnings.

Public information shows that the predecessor of *ST Jilun, Jilun Electronics Co., Ltd., was established in December 1994, founded under the leadership of Zhang Xueyang. In June 2002, it was listed on the Shanghai Stock Exchange, becoming the first listed company in China initiated solely by natural persons. At its peak, it held a place in niche markets such as public communications terminal equipment and identity recognition. It is also one of the representatives of private technology enterprises in Hubei’s Optics Valley. Its main business covers three segments: intelligent manufacturing, commercial intelligent terminals, and software information services. Its core products include industrial sewing equipment servo systems, ID card reading and verification devices, IoT charging devices, and intelligent connectivity solution offerings.

However, as communication technology has accelerated in its iteration and upgrades and industry competition has grown increasingly fierce, the company failed to keep pace with the pace of industrial upgrades in time. Its core businesses continued to shrink, its market competitiveness declined year by year, and it gradually fell into operating difficulties. The sustained deterioration of financial data is the core root cause of *ST Jilun moving toward delisting.

A reporter’s review of its recent financial reports shows that the company has been stuck in a pattern of continuous losses since 2019. To date, it has had seven consecutive years of negative net profit, forming a vicious cycle of “weak revenue performance, expanding losses, and drying up cash flow.” In 2023, the company’s loss was 43.36 million yuan. In 2024, the loss amount narrowed slightly but was still 42.06 million yuan. The 2025 annual performance forecast released in January 2026 indicates that the company expects a full-year net loss of between 39.50 million yuan and 45.50 million yuan. Moreover, after deducting, its operating revenue is only about 86.22 million yuan, far below the 300 million yuan financial-type delisting red line.

As of the end of the third quarter of 2025, *ST Jilun’s total assets were only 252 million yuan, while total liabilities were 148 million yuan. Its asset-liability ratio is close to 60%. Net assets are less than 104 million yuan, and the capital chain is on the verge of breaking. Net cash flow from operating activities has been net outflow for years. In the first three quarters of 2025, the net outflow reached 8.8598 million yuan, making it impossible to sustain daily operations. Persistent performance losses have thoroughly destroyed market confidence. Since the beginning of 2026, the company’s stock price has entered a “cliff-like” decline, with a cumulative drop of 74.11% within the year—laying the groundwork for delisting.

It is worth noting that the failure of internal controls and multiple regulatory penalties for violations have further accelerated *ST Jilun’s delisting process. In December 2020, the Hubei CSRC found that the company had multiple violations, including that in 2018, various expenses were accrued across reporting periods, resulting in under-accrued expenses of 36.699 million yuan; this artificially inflated the company’s profit for that year by accounting for 33.32% of the net profit for the period. The company used inconsistent inventory impairment provision methods for different entities but failed to disclose it as required. From 2018 to 2019, the internal control self-assessment reports stated “no material defects,” but in fact there were internal control weaknesses such as chaotic seal management and non-compliant meeting records.

For this reason, the Hubei CSRC issued warning letters to the company and relevant responsible persons such as Chairman Zhang Xueyang and the person in charge of finance. In 2021, the Shanghai Stock Exchange also paid regulatory attention to the company and the relevant responsible parties.

Since the beginning of 2026, *ST Jilun has been surrounded by three types of delisting risks: trading-type, financial-type, and par-value-type. Among them, the trading-type delisting indicator was triggered first, becoming the final straw that broke the camel’s back.

From March 9 to April 3, the company’s share price hit the daily limit down consecutively. Its market value rapidly shrank from above 400 million yuan. As of the close on April 3, the stock was trading at 0.58 yuan per share, with a total market capitalization of only 285 million yuan. It remained below 500 million yuan for 20 consecutive trading days, precisely meeting the forced delisting red line under the first item, fifth sub-item of Article 9.2.1, Paragraph 1 of the “Shanghai Stock Exchange Listing Rules for Stocks.”

Meanwhile, the company’s stock price has been below 1 yuan for 16 consecutive trading days, also nearing the par-value delisting indicator. And the “net profit is negative and after-deduction revenue is below 300 million yuan” shown in the 2025 performance forecast means that even if trading-type delisting were not triggered, after the annual report is disclosed the company would still meet the financial-type delisting requirements.

According to the relevant exchange rules, trading-type forced delisting does not involve a delisting stabilization period. After the company’s shares are suspended starting April 7, the Shanghai Stock Exchange will deliberate on the matter of terminating the listing within 15 trading days after the deadline expires or after the hearing concludes. Then, within another 5 trading days, the shares will be directly removed from the exchange. The delisting process is irreversible. As of the time this reporter went to press, *ST Jilun has not yet issued an announcement on whether it will apply for a hearing. But regardless of how the subsequent procedure unfolds, this company, with 24 years of listing history, is already essentially confirmed to say goodbye to the A-share stage.

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