(Yicai) Jan. 29 -- Guosheng Shian Technology's shares plunged by their daily trading limit after the Chinese maker of photovoltaic cells said its chairman was detained by the authorities three months ago to assist with an investigation. 

Guosheng Shian [SHA: 603778] closed down 10 percent at CNY4.15 (58 US cents) a share in Shanghai today. The stock has plunged 25 percent since the start of the year. 

Wu Jun, who is also Guosheng Shian’s actual controller, was detained on Nov. 2 and is assisting in an investigation of the supervisory body of Huai'an in China's eastern Jiangsu province, the Beijing-based company said yesterday, adding that the investigation has nothing to do with the firm.

Wu has continued to perform his duties as normal while in custody, making decisions about major issues and signing relevant corporate documents, Guosheng Shian said in explaining why it did not disclose details about Wu's detainment earlier. 

News about Wu's arrest began circulating online last week. On Jan. 26, Guosheng Shian clarified that he was still performing his duties, leading to its stock closing 10 percent higher that day. 

Last August, Beijing-based ecological garden firm Qianjing Landscape, Guosheng Shian’s predecessor, went through an integration and restructuring with Guosheng Energy, which was controlled by Wu. Qianjing Landscape then renamed itself Guoseng Shian and named Wu as chairman. Guosheng Energy is Guosheng Shian's largest shareholder, with a 17 percent stake.

Wu was a government official before becoming a businessman. From August 2012 to October 2013, he headed the Bureau of Urban Utilities and Landscaping in Xuzhou in Jiangsu, with the government department being a major client of Qianjing. 

Last December and early this month, Beijing's securities regulator and the Shanghai Stock Exchange punished Hui Quanfu, Guosheng Shian's former chairman and general manager, and Zhang Yongsheng, the firm's ex-financial director, after its financial accounting over the past three years failed to meet standards, its financial data were not precise, and its corporate governance and internal control were not sound. 

Thanks to the merger and reorganization, Guosheng Shian's net profit soared 154 percent to CNY17.9 million (USD2.5 million) in the nine months ended Sept. 30 from a year earlier, according to its latest earnings report. Revenue skyrocketed more than 900 percent to CNY906 million (USD126.2 million).

Editor: Martin Kadiev