Three senior board members of struggling Chinese PV manufacturer China Solar Energy Holdings have been detained by Chinese authorities following allegations of fraud.
The company, which has lost some 93% of its value since 2007, said it had been unable to contact its chairman and executive director, Yeung Ngo, and two of its directors, Yang Yuchun and Hao Guojun, since the end of August, when they were arrested.
In a statement to the Hong Kong stock exchange, China Solar said allegations against the company centred around two of its subsidiaries, Changzhou and Dali Stream Solar.
The Changzhou subsidiary is alleged to have failed to pay a US$50,000,000 increase in its registered capital to the local authority by the due date of 23 June 2010.
Meanwhile, Dali Stream Solar also failed to put up its registered capital of US$49.5 million, according to the statement, resulting in its assets being frozen and documents seized by the Dali public security bureau while it carried out investigations into suspected false reporting of the registered capital.
The three board members have all been detained for allegedly making false statements about the registered capital of the two subsidiaries, the company said.
China Solar said the three directors’ duties had been suspended, but that this would not affect the day to day running of the company.
Trading of its shares have been suspended since 16 August, a situation that would continue until further notice, the company said.
At the end of the 2012-13 financial year the company posted a total revenue of HK$180,499,000 (US$22,281,505)) and losses of HK$137,000,000.