(Yicai Global) Aug. 19 -- Shenghe Resource [SHA:600392], a developer, producer and supplier of rare earths and related products, slumped 6.83 percent lower this morning to CNY8.32 (USD1.2) as the current flood in its home in China’s southwestern Sichuan province is expected to cost it up to CNY520 million (USD75.2 million), almost two years of profit.

Factories of its two units in Leshan have halted operations and all workers have been evacuated as the flood passed the city yesterday, according to the firm’s statement. One subsidiary is expected to lose CNY240 million CNY330 million, while the other is projected to lose CNY150 to CNY190 million, with huge damage to equipment, workshops and inventory.

Editor: Ben Armour