Caixin
Apr 08, 2022 07:32 PM
BUSINESS

In Depth: Stocks Regulator Starts First Probe of STAR Market Company

In 2021, Amethystum Storage reported an 8.5% drop in revenue, which it attributed to the ongoing change in its business model from selling equipment to selling services . Photo: VCG
In 2021, Amethystum Storage reported an 8.5% drop in revenue, which it attributed to the ongoing change in its business model from selling equipment to selling services . Photo: VCG

An optical storage equipment supplier whose share price has more than halved in the past year has become the first company listed on Shanghai’s high-tech STAR Market to be formally investigated by the securities regulator for violating information disclosure rules related to the activities of its controlling shareholders.

Amethystum Storage Technology Co. Ltd. (688086.SH), whose profit plunged 93.4% last year, is also being scrutinized by the Shanghai Stock Exchange (SSE) for failing to disclose that assets were pledged as guarantees for loans taken out by its shareholders and by other companies, some of whom are suspected of having links with the manufacturer’s customers.

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