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Due to the continuous market value of its stock closing below 300 million yuan for twenty trading days, *ST Shen Tian (000023) has been determined by the Shenzhen Stock Exchange to terminate its listing and will be delisted on September 2, 2024. On the evening of September 1, the company issued an announcement regarding the termination of its stock listing and delisting.

Previously, on August 21, *ST Shen Tian disclosed that it had received a decision from the Shenzhen Stock Exchange titled "Decision on the Termination of Listing of Shares of Shenzhen Tiandi (Group) Co., Ltd."

From June 27, 2024, to July 24, 2024, *ST Shen Tian's stock market value closed below 300 million yuan for twenty consecutive trading days through the Shenzhen Stock Exchange trading system, triggering the conditions for stock delisting as stipulated by the exchange.

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In accordance with relevant regulations, the company's stock, due to triggering a mandatory delisting scenario related to trading, has been decided to terminate listing and will not enter a delisting adjustment period. The company's stock will be delisted within fifteen trading days after the Shenzhen Stock Exchange makes the delisting decision.

*ST Shen Tian is a listed company with a main business in commercial concrete and a pillar industry in real estate, including the production and sales of commercial concrete, real estate development, and property management.

Since 2020, *ST Shen Tian has been continuously facing losses. In the first half of 2024, the company's loss exceeded its revenue scale, with operating income of 40.8354 million yuan, a year-on-year decrease of 54.35%; net profit loss was 70.3284 million yuan.

In the concrete business sector, *ST Shen Tian has provided a large amount of high-quality commercial concrete for key projects, landmark buildings, and the Zhuzhou market in Shenzhen and Zhuzhou, ranking among the top in the concrete market share in the Zhuzhou area.

However, according to data analysis from the China Concrete and Cement Products Association and the National Bureau of Statistics, from January to May 2024, the main economic indicators of the concrete and cement products industry have shown a significant decline. The main business income of the concrete and cement products industry with a scale above designated size decreased by 16.3% compared to the same period last year; the total profit decreased by 42.56% compared to the same period last year.

As disclosed by *ST Shen Tian, in the first half of 2024, affected by the decline in demand in the real estate industry, the overcapacity in the concrete industry in Shenzhen and Zhuzhou has become more severe, leading to more intense market competition. The company's concrete business has been affected by insufficient market demand and increased company financial pressure, making the difficulty of business operations continuously increase.

In the real estate sector, *ST Shen Tian has been involved in the real estate industry since 1984, cooperating with other companies to develop a batch of commercial and residential buildings. Subsequently, the company established a specialized engineering development company engaged in real estate development and management. Since its establishment, it has successively developed several residential, industrial, and commercial properties. The company's current real estate business is mainly focused on commercial properties and ordinary residential properties, with business areas mainly concentrated in Shenzhen, Xi'an, and Lianyungang.However, the sluggish industry environment continues to impact businesses. In the first half of 2024, the domestic real estate market remained sluggish. According to data released by the National Bureau of Statistics, the national real estate development investment was 5.25 trillion yuan, a year-on-year decrease of 10.1% (calculated at comparable prices); of which, residential investment was 3.99 trillion yuan, down by 10.4%. The construction area of houses by real estate development enterprises was 6.968 billion square meters, a year-on-year decrease of 12%.

It is noteworthy that on August 30, *ST Shen Tian also announced that the company has decided to sue its controlling shareholder, Guangdong Junhao Equity Investment Holding Co., Ltd., and the actual controller, Lin Hongrun.

On April 30, 2023, the wholly-owned subsidiary of *ST Shen Tian, Shenzhen Tiandi Shunming Enterprise Management Co., Ltd. (hereinafter referred to as "Tian Di Shun Ming"), signed a "Purchase and Sale Contract" for cement, mineral powder, and sand and gravel with Shenzhen Qian Hong Trading Co., Ltd. On May 4, 2023, Tian Di Shun Ming transferred 137 million yuan from its account at the Beijing Wanshou Road Branch of Bohai Bank Co., Ltd. to Shenzhen Qian Hong Trading Co., Ltd. in the form of a prepayment.

A non-operational fund occupation of 137 million yuan was formed under the guise of prepayment for materials. As of August 28, 2023, the cumulative balance of non-operational fund occupation was 137 million yuan.

Confirmed by the actual controller Lin Hongrun and the controlling shareholder, there was no substantive transaction in the aforementioned contract and fund transactions. The controlling shareholder, Guangdong Junhao, used this to form a 137 million yuan transaction to repay its debts, constituting a non-operational fund occupation by the controlling shareholder of Shen Tian Di.

As of the date of the announcement, *ST Shen Tian has not yet received any clear, executable repayment measures from the actual controller or the controlling shareholder, and there are no repayment guarantee measures or specific repayment plans. The balance of non-operational fund occupation by Guangdong Junhao to the listed company remains at 137 million yuan.