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China Daily Website

Scandal-hit liquor maker's shares tumble after trading suspension

Updated: 2012-11-23 14:00
( Xinhua)

BEIJING - Shares in Chinese alcohol producer Jiugui Liquor Co ltd tumbled by the daily limit shortly after opening on Friday, as the company resumed trading after a four-day suspension due to an ingredients scandal.

Hunan-based Jiugui, listed on the Shenzhen Stock Exchange, suspended trading of its shares on Monday after a report appeared on www.21cbh.com saying that tests by Shanghai's Intertek found excessive levels of a chemical in the company's products.

The General Administration of Quality Supervision, Inspection and Quarantine confirmed on Wednesday that tests conducted by its Hunan branch found that liquor samples from Jiugui contained 1.04 mg of plasticizing agent dibutyl phthalate per kg.

Jiugui apologized to its consumers and investors on Thursday.

On Friday morning, the price per share for Jiugui dipped to 42.82 yuan right after trading started, down by the daily limit of 10 percent from 47.58 yuan before suspension.

The company had a net profit of 459 million yuan ($74 million) for the first three quarters of this year, up 433 percent year on year, according to its financial report released in October.

Other liquor producers, including Wuliangye Yibin Co, one of the country's largest such companies, have also taken a hit from the Jiugui scandal and saw share prices fall on Thursday.

 
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