SHARES of Baoding Tianwei Baobian Electric Co. hit their daily downside limit yesterday following a company warning about a potential delisting now it has recorded two consecutive years of net loss.

    Baoding Tianwei, which lists shares on the Shanghai Stock Exchange, posted a 2013 net loss of 5.23 billion yuan (US$852 million). The electrical equipment maker made a 2012 net loss of 1.55 billion yuan.

    The firm, which also makes solar panels and is based in the northern province of Hebei, attributed the results to a downturn in the alternative-energy industry and said it will concentrate on making conventional power transformers.

    Baoding Tianwei closed down 5.09 percent at 4.29 yuan yesterday. Its corporate bonds were also suspended from trading for a second day.

    The firm’s corporate bonds can no longer be collateral for short-term lending among exchange investors, the Shanghai exchange said.

    The Shanghai exchange, in line with its rules, will decide in seven trading days whether to continue the trading halt on Baoding Tianwei’s bonds.

    Shenzhen-listed solar energy company Shanghai Chaori Solar Energy Science & Technology Co. became the first company to default on its domestic corporate bonds last week. It failed Friday to pay 89.8 million yuan in interest on a 1 billion yuan, five-year bond sold two years ago.

    The yield on Baoding Tianwei’s 1.6 billion yuan of 5.75 percent bonds due 2018 has soared 537 basis points over the past year to 11.13 percent as of Monday, according to exchange data. (SD-Agencies)