Sanergy’s shares plummets 98% following a forced liquidation

The company requested a trading halt on 3 September.

HKEX-listed Sanergy announced that on 3 September, 370,082,000, or 36.64% of its shares were forcibly sold in the Hong Kong market by securities companies through margin securities accounts.

The forced sale caused the company’s shares to drop by 98%.

The forced sale followed a warning from Hong Kong's Securities and Futures Commission that 26 shareholders own 85.32% of Sanergy Group’s shares, making the stock prone to significant fluctuations with minimal trading.

The company was informed by Otautahi Capital which is controlled by Sanergy executive director Hou Haolong and a major shareholder of the company.

Otautahi Capital’s stake in the company declined to 21.02% or 212,320,000 shares from 57.7% after the forced liquidation.

The company requested a trading halt of its shares on the Hong Kong Stock Exchange (HKEX) from 3 September, 2:50 pm, pending this announcement.

Meanwhile, an application for trading resumption was made effective from 4 September, 9 am.

Sanergy advises shareholders and potential investors to exercise caution when dealing in the company's securities and, if in doubt, to seek professional advice from their financial advisors.