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Polysilicon group Daqo hit by NYSE warning over share price
Chinese polysilicon maker Daqo New Energy has received a warning from the New York Stock Exchange (NYSE) that it no longer complies with listing requirements, after the firm’s share price remained below $1 for 30 consecutive days.
The stock exchange requires that any listed security trade at a minimum average closing price of $1 during any consecutive 30-trading-day period.
Daqo said in a statement this week that it “intends to cure its ADS' (American Depositary Shares) price deficiency within the applicable time periods required by the NYSE and to remain listed on the NYSE, subject to its compliance with other NYSE continued listing standards”.
Under the stock exchange rules, the company has six months following receipt of the notification to regain compliance with the minimum share price requirement.
Daqo has just announced poor second quarter results, with revenues dropping to $30.6m from $70.7m in the same period a year ago. It reported losses of $8m for the quarter compared with a profit of $26.4m in last year’s second quarter.
The Chongqing-based company is one of the few in China still producing polysilicon, after prices slumped by almost 60% this year amid global oversupply.
GCL-Poly, China’s largest polysilicon maker, is also feeling the impact of low selling prices, and earlier this month warned it would post its first interim loss in two years.
The firm expects to report losses of HK$330m ($42.5m) for the first half of this year, compared to a net profit of HK$3.55bn in the same period in 2011.
In response to growing pressure, both companies have lobbied Beijing to launch anti-dumping investigations into US and Korean polysilicon.
The Chinese companies are also calling on the government to take similar action against European polysilicon makers, who have exported growing amounts of the solar raw material to China this year.
Daqo’s shares were trading at $0.96 today.