On April 9th, China Tianrui Group Cement Co Ltd experienced a staggering 99% decline in its share value, plummeting to around HKD0.05 (US$0.006). This drastic drop pushed the company’s market capitalization down to HKD141 million. The sell-off frenzy saw approximately 281 million shares, accounting for a third of the company’s total shares, change hands. Notably, more than 80 million shares were traded in the final minutes of the closing auction.
In response to the market turmoil, the Cayman Island-incorporated company announced that trading in its Hong Kong-listed shares would be suspended at 9:00 a.m. local time on April 10th, pending an announcement related to insider information, as reported by Bloomberg citing a company filing.
Tianrui Group Cement reported a significant net loss of CNY634 million (US$87.7 million) in 2023, contrasting with a profit of CNY449 million in 2022. The company attributed this loss to weakened demand following the real estate downturn in China, heightened market competition, and elevated raw material costs.
In a statement filed in January, it was revealed that Li Liufa, Tianrui’s majority shareholder, along with his wife, collectively own about 70% of the company. Additionally, the cement maker disclosed pledging 97 million shares, equivalent to 3.3% of its total shareholding, to secure a 12-month loan of up to CNY166.5 million.