Shares in mainland gas distributor Panva Gas Holdings fell more than 10 per cent yesterday after a report claimed its Nanjing joint-venture partner had overstated profits. The Growth Enterprise Market-listed stock closed at HK$3.32, down 10.14 per cent on the day. The firm's Nanjing joint-venture partner allegedly overstated profits by more than 12 times last year, reporting 25 million yuan (about HK$23.4 million) instead of the two million yuan it actually made, a Chinese-language newspaper reported yesterday. In the report, Panva president Wayne Chen Wei said the allegation would have no impact on the Hong Kong-listed company or its joint venture. Panva could not be contacted for comment yesterday. Panva, in which conglomerate Hutchison Whampoa has a 12.8 per cent stake, last month reported a tenfold year-on-year jump in interim net profit to HK$60.94 million for the half to June 30. The Nanjing joint venture recorded turnover of 190 million yuan last year. The venture was established in 2000 with registered capital of 50 million yuan. Panva holds 55 per cent of the venture and its partner, Nanjing LPG, the balance. Meanwhile, brokerage ICEA said Panva's management had disclosed that they had signed 12 memoranda of understanding to extend its business into new cities and were in negotiations to expand into another 25 cities. It operates in 17 cities. Its investment strategy is to take controlling stakes in projects, particularly piped gas-related operations.