Jilin Chemical stock frozen
Jilin Chemical Industrial's A shares were suspended from trading yesterday after the company posted its third consecutive annual net loss, of 1.02 billion yuan (about HK$956 million), for last year, even though it turned in a net profit of 193.29 million yuan in this year's first quarter.
Market listing rules require any firm recording three straight years of losses to be suspended from trading and subject to delisting procedures.
According to the rules, the company could apply for the resumption of trade in its A shares if it generated a profit for the first half of this year, chairman Yu Li said. But its A shares would be delisted if it made a net loss this year.
'Based on the unaudited results of the first quarter to March 31, the group expects to generate profit in the first half, assuming that crude oil prices do not increase significantly and that the demand for petrochemical products remains steady,' Mr Yu said.
Trading of the company's H shares was not affected, which rose 5.08 per cent to close at 62 HK cents yesterday.
The first-quarter result was based on mainland accounting standards, while last year's result was based on international rules.