Tianlong Optoelectronic Co., Ltd. hit a historic low of business performance due to impacts of dampened demand, overcapacity and escalated conflicts among peers in China’s PV industry in 2012. An overwhelming defeat across all business indicators made the company suffer the largest deficit of nearly RMB 500m among all GEM companies with loss. In terms of market value, it has shrunk over 80% to only RMB 1.3bn from close to RMB 7.7bn at peak.

In addition, the company faces the risks of controlling shareholders reducing shares and bearing joint and several liabilities associated with bank loan guarantee. It just made an announcement that it has planned to abandon the proposal that was approved back in 2012 on guaranteeing the bank loan of a maximum RMB 200m for Shanghai Chaori Solar Energy Science & Technology Co., Ltd., in a bid to evade joint and several liability.