(Yicai Global) Aug. 25 -- Shares in Dandong Xintai Electric Co. [SHE:300372], a power equipment maker based in the northeast Chinese province of Liaoning, will cease trading at the end of today as it becomes the first firm forced to delist from the domestic equity market due to a fraudulent initial public offering.

"As the delisting has been confirmed, the company cannot conduct any bidding and tenders nor obtain new orders," the 21st Century Business Herald reported, quoting company controller Wen Deyi.

Xintai is a prominent company that delivers steady financial results and has never incurred any losses, he stressed.

The firm is expected to incur a loss of CNY29.2 million (USD4.4 million) to CNY39.6 million in the first half of this year, down 700 to 982 percent annually. The company attributed the sharp decline to China's economic slowdown and a credit crisis related to the delisting, which resulted in fewer orders.

After the delisting, Xintai will trade on the older version of the over-the-counter system for trading shares, which was replaced by the New Third Board (National Equities Exchange and Quotations). The older is an agency share transfer system comprising STAQ and NET and receives companies that are delisting from China's A-share market.

Dandong Xintai has seen its share price rise more than 20 percent since Aug. 3, and closed on Aug. 24 at CNY1.54 (USD0.23) a share, up 1.99 percent with a turnover rate of 3.26 percent.

More than 70 percent of investors have now been compensated after the establishment of a CNY550-million fund by IPO sponsor Industrial Securities Co. [SHA: 601377], Wen said.