Akcome mentioned it might be delisted from the Shenzhen Stock Exchange, as its share worth fell beneath CNY 1 ($0.14) for 20 consecutive buying and selling days. In early June, the producer introduced a brief halt in operations for its subsidiaries in Jiangxi and Zhejiang provinces in China.
Chinese photo voltaic producer Akcome Technology could also be delisted from the Shenzhen Stock Exchange as its share worth fell beneath CNY 1 for 20 consecutive buying and selling days. Under China’s securities laws, a inventory that trades beneath CNY 1 for 20 consecutive buying and selling days faces delisting.
The firm resumed buying and selling on May 6 after a quick suspension. Its inventory worth fell from CNY 1.76 per share on April 29 to CNY 0.41 per share on June 14.
The China Securities Regulatory Commission (CSRC) is investigating Akcome Technology and its controlling shareholder, Zou Chenghui, for alleged info disclosure violations. On June 12, the corporate mentioned it acquired a discover from the CSRC. This signifies that even after delisting, the corporate and the accountable events could face civil, administrative, or legal liabilities for any pre-delisting misconduct.
Akcome Technology has a historical past of deceptive disclosures. In late February, shortly after the Chinese New Year, its controlling shareholder, Akcome Industrial, and its associates introduced plans to extend their property by as much as CNY 200 million in six months. to extend the inventory worth. The inventory briefly rose, however the plan by no means materialized, and the corporate quickly entered a delisting tunnel.
On April 15, when buyers requested in regards to the threat of particular therapy (ST) resulting from three consecutive losses, Zou assured them that there was no such threat. However, simply half a month in the past, the Shenzhen Stock Exchange designated Akcome Technology as an ST inventory after the disclosure of its 2023 annual report.
The firm’s 2023 annual report, launched on the final attainable time on April 30, along with the auditor’s report from Suya Jincheng CPA LLP, expressed a reserved opinion and uncertainty about Akcome’s potential to proceed as an ongoing concern. The audit report additionally issued a destructive opinion on the corporate’s inside controls for 2023.
Founded in 2006, Akcome Technology initially centered on manufacturing photo voltaic frames. It was listed on the Shenzhen Stock Exchange in 2011 and has since diversified into numerous PV segments, together with photo voltaic cells, PV modules, frames, and mounting methods, and even invested in downstream PV energy plant. At its peak, Akcome’s market worth reached CNY 27.5 billion, making it a distinguished participant within the Chinese inventory market.
In 2021, Akcome started to make vital investments in heterojunction cell expertise (HJT), establishing a number of HJT manufacturing bases in japanese China. However, this era additionally marked the start of steady monetary losses. The firm reported audited internet losses of CNY 406 million, CNY 833 million, and CNY 826 million for 2021, 2022, and 2023, respectively, amounting to an estimated CNY 2.065 billion over the three years. .
The precise controller of the corporate continued to money out by promoting shares regardless of the losses. According to twenty first Century Business Herald, main shareholders lowered their holdings by 627 million shares from 2017 to 2022, cashing out CNY 2.054 billion. Initially holding 43.63% of the corporate, the Zou household’s stake dropped to lower than 7% within the first quarter of 2024.
The precise controller additionally used share pledges and related-party transactions to acquire funds from Akcome Technology, together with acquiring exterior ensures.
On May 31, Akcome mentioned a few of its subsidiaries’ financial institution accounts have been frozen resulting from overdue money owed, affecting the corporate’s capital operations and enterprise administration.
On June 7, Akcome introduced a brief suspension of operations for its subsidiaries in Ganzhou, Zhejiang, and Huzhou, for as much as three months. The firm additionally withdrew from the SNEC 2024 Photovoltaic Exhibition, avoiding potential confrontations with buyers, suppliers, and staff.
The firm has to date not responded pv journalIt is requested to offer a touch upon the matter.
The delisting and associated violations instantly have an effect on 270,000 buyers, with platforms like Sina providing on-line registration for a possible class-action lawsuit.
In May, Akcome was listed amongst Bloomberg New Energy Finance’s (BNEF) tier-1 world PV module producers for the second quarter of 2024.
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