Maiquer Sinks by Limit as Chinese Regulators Find Two Batches of Tainted Milk
Dou Shicong
DATE:  Jun 30 2022
/ SOURCE:  Yicai
Maiquer Sinks by Limit as Chinese Regulators Find Two Batches of Tainted Milk Maiquer Sinks by Limit as Chinese Regulators Find Two Batches of Tainted Milk

(Yicai Global) June 30 -- Shares in Maiquer Group plummeted by the exchange-imposed limit today after a market watchdog found two consignments of milk produced by the Chinese dairy product firm and bakery chain operator to be contaminated with a slightly toxic additive.

Maiquer’s share price [SHE:002719] closed down 10 percent at CNY7.98 (USD1.19), giving it a market capitalization of CNY1.4 billion (USD209.1 million). The stock has lost a quarter of its value so far this year.

Two batches of Maiquer’s milk were found to have excessive amounts of propylene glycol, market regulators in Qingyuan county, southeastern Zhejiang province said on June 28. Propylene glycol is an additive with low toxicity but too much consumption of it can cause kidney disorders.

Maiquer is now carrying out spot checks on multiple shipments of its products, but the results are not yet available, online news outlet The Paper reported today, citing a company employee. The firm, which is based in Changji, northwestern Xinjiang Uyghur Autonomous Region, will decide its next course of action once the screening is completed.

Dairy products accounted for 64 percent of Maiquer’s revenue last year and 68 percent of its earnings came from outside Xinjiang, according to its annual earnings report.

Maiquer’s net profit shrank 65 percent last year from the year before to CNY18.5 million (USD2.8 million), according to the report. Revenue, though, jumped 30.9 percent to CNY1.1 billion (USD164.3 million).

Editor: Kim Taylor

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Keywords:   Maiquer Group,Milk,Food Safety