Caixin
May 22, 2020 05:39 AM
FINANCE

Video Streamer Baofeng Joins Rival Leshi in Facing Shenzhen Delisting

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What’s new: Another popular Chinese online video service provider, Baofeng Group Co. Ltd., faces the risk of being delisted in Shenzhen after failing to file its annual report on time.

Baofeng would be following in the footsteps of rival Leshi Internet Information & Technology Corp., which is being delisted by the Shenzhen Stock Exchange. The bourse gave notice Wednesday of an investigation into suspected violation of information disclosure rules, Baofeng said.

If the company fails to file its 2019 annual report by June 30, its stock will be suspended and could be delisted a month later if it still hasn’t filed the report by then, according to the exchange’s rules.

The background: Baofeng has been in trouble for the past two years. Its President Feng Xin was taken into police custody last summer on bribery allegations. Almost all staff have left the company since.

Baofeng, which had ambitions of competing with rival sports media platform LeSports, has been haunted by operational and financial challenges as it struggles to manage fallout from its involvement in a high-profile and ill-fated acquisition of British firm MP & Silva Holding SA.

LeSports’ operator Leshi will be delisted June 5 from the Shenzhen Stock Exchange after three consecutive years of losses and suspension of trading for a year.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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