(Yicai Global) Sept. 16 -- HNAC Technology plunged by the exchange-imposed trading limit after the Chinese maker of hydropower control systems canceled CNY481 million (USD75 million) of orders from battery giant Contemporary Amperex Technology.

HNAC [SHE:300490] fell 20 percent today to close at CNY26.19 (USD4.07). The stock had soared 274 percent since the Changsha, Hunan province-based firm won the two orders for lithium battery-making equipment in April and May worth CNY230 million and CNY251 million each.

The company canceled the orders because of a number of factors including the change of the project site, it said in a statement released late yesterday. Wholly owned unit Jingshi Electromechanical Technology had won the tenders, which were the equivalent of 40 percent of HNAC's revenue from its major business last year.

The Shenzhen Stock Exchange also wrote to HNAC yesterday, asking it to specify the reasons behind the cancellation, including the time frame and details of the project site change and corresponding technological conditions, adjustments to the client’s demands and the unit’s production capacity, capacity utilization rate and related schedule.

HNAC’s controller and shareholders owning more than 5 percent have disclosed plans to pare their stakes since July. The SZSE also asked HNAC to report any progress regarding stake sales, and to clarify whether it announced the news about its deals with CATL to boost the firm’s stock price before shareholders sold.

Editor: Futura Costaglione