June 10 — Xiongtai Co. shares hit the daily limit after market reports said
funds originally earmarked for hydrogen and lithium capacity expansions were
redirected, leading investors to conclude the company’s expected second growth
curve has been shelved and growth expectations were downgraded. The company said
operations are normal and that hydrogen still has market potential but is not
market-ready in the near term and therefore did not meet the standards for a
second growth engine. To avoid potential large losses the firm repurposed the
related funds. Xiongtai added the lithium battery division is in a similar
position: some projects have been built but the company will not commit new
capital to further projects for now.
