(Yicai Global) Dec. 18 -- Shares of Haiyuan Composites Technology jumped after the Chinese maker of automatic hydraulic presses said that it will try its hand at solar energy panel manufacturing amid its risk of being delisted due to long-term losses.

Haiyuan's stock price [SHE:002529] jumped 5 percent to CNY6.22 (95 US cents) this morning. If the firm reports losses for the third straight year this year, the Shenzhen Stock Exchange will order it to be delisted. The bourse has already limited the manufacturer's stock price movements to 5 percent per day, half of the usual.

The company has penned a deal with eastern China's Gaoyou to invest CNY10.5 billion (USD1.6 billion) to build a large photovoltaic cell and module project in the city, the Fujian province-based firm said in a statement yesterday, without disclosing how it will raise the funds.

Haiyuan has been reacting to its troubles. The company changed its actual controller in July to improve its management and began its transition to the highly competitive solar power business.

The 10-gigawatt photovoltaic cell plant in Gaoyou is scheduled to start trial production by June 2022 and reach full capacity by December 2022, the company said. That should cost the firm CNY6 billion. The second stage is a 10GW photovoltaic module project, worth about CNY4.5 billion.

So far it looks like delisting is not on the cards. Haiyuan made CNY2.6 million (USD397,460) in net profit in the first three quarters, according to its earnings report. Its revenue fell 29 percent to CNY174 million (USD26.6 million) from a year ago.

Editor: Emmi Laine