(Yicai Global) April 30 -- Leshi Internet Information & Technology will assist China's main securities regulator in the latter's investigation into the listed arm of troubled Chinese tech firm Leshi. The investigation may lead to a delisting.
Leshi Internet and its majority shareholder Jia Yueting will both actively coordinate with the CSRC's work, and strictly follow the rules of information disclosure, the Beijing-based company said in a statement. Its equity [SHE:300104] has been halted at CNY1.69 (US 25 cents) since April 26.
Leshi Internet and Jia have received notices from the CSRC that it has kicked off an investigation against Leshi Internet and Jia due to violating listed companies' requirements of information disclosure, the statement added.
Within 15 trading days of a suspension, the Shenzhen Stock Exchange may decide whether Leshi Internet must exit the secondary market. The bourse will delist the company if it continues to show negative net assets or the firm is continually labeled by auditors as "unable to evaluate" in a year or even longer, per the exchange's rules.
The firm had negative net asses last year and it logged a loss of CNY177 million (USD26.3 million) in the first quarter of this year, according to its audited earnings. The loss, however, was 42 percent smaller than a year ago.
Editor: Emmi Laine